Mexico’s Development Banks Fuel the Fossil Energy Trade

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Demonstrators demand clarification of the murder of land rights activist Samir Flores and the shutdown of a thermoelectric plant in the state of Morelos, in central Mexico, in a February 2019 protest on Mexico City's emblematic Paseo Reforma. CREDIT: Emilio Godoy/IPS

Demonstrators demand clarification of the murder of land rights activist Samir Flores and the shutdown of a thermoelectric plant in the state of Morelos, in central Mexico, in a February 2019 protest on Mexico City’s emblematic Paseo Reforma. CREDIT: Emilio Godoy/IPS

MEXICO CITY, May 20 2020 (IPS) – Since 2012, Teresa Castellanos has fought the construction of a gas-fired power plant in Huexca, in the central Mexican state of Morelos, adjacent to the country’s capital.


“We don’t want the power plant to operate, because it will cause irreparable damage, polluting the water and air. This project was imposed on us; we have to defend the water and the land. This is not an industrial zone,” the activist, coordinator of the Huexca Resistance Committee, told IPS.

During the tests, the constant noise of the turbines also altered the life of this small community of just over 1,000 people, mostly farmers, near the Cuautla River, within the rural municipality of Yecapixtla.

“Development banks must have safeguards and principles for sustainable investment. National regulations are needed, which define climate finance and green finance, what principles govern them, what are the climate risks. The trend should be to increasingly finance green projects and less and less hydrocarbons.” — Liliana Estrada

The Central Combined Cycle Plant, located in Huexca and with a capacity of 620 megawatts based on gas and steam, is part of the Morelos Integral Project (PIM), developed by the state Federal Electricity Commission (CFE). It also consists of an aqueduct and a gas pipeline that crosses the states of Morelos, Puebla and Tlaxcala.

The People’s Front in Defence of Land and Water of Morelos, Puebla and Tlaxcala and its ally, the Permanent Assembly of the People of Morelos, have managed to get several court orders that have blocked the operation of the plant, the 12-km aqueduct and the 171-km gas pipeline since 2015.

Castellanos, who has won an international and a national award for her activism, has been involved in the battle against the plant from the very start, which has earned her persecution and threats.

The opposition to the power plant by local communities that depend on planting corn, beans, squash and tomatoes and raising cattle and pigs, focuses on the lack of consultation, the threat to their agricultural activity, due to the extraction of water from the rivers, and the discharge of liquid waste.

In February 2019, a public consultation that did not meet international standards supported the completion of the project.

A few days earlier, activist Samir Flores had been murdered, a crime that remains unsolved – just one more instance of violence against environmentalists in Mexico. Despite Flores’ murder, the government of leftist President Andrés Manuel López Obrador went ahead with the referendum and upheld the result.

Public funds have fuelled the conflict, as the state-owned National Bank of Public Works and Services (Banobras) lent some 55 million dollars for the pipeline.

As in the case of other projects, development banks have become a financial pillar for the oil industry in Latin America’s second-largest nation, population 130 million.

The National Bank of Foreign Trade (Bancomext), Banobras and Nacional Financiera (Nafin) have funneled millions of dollars into building pipelines and oil and gas facilities in recent years, even though the climate change crisis makes it necessary to abandon such investments.

They have also financed renewable energy projects, but in much smaller amounts than fossil fuels.

The construction and operation of the Central Combined Cycle Plant, of the state Federal Electricity Commission, financed with public funds, unleashed a conflict with residents of Huexca, a small community in the central Mexican state of Morelos, which has brought the operation of the thermoelectric plant to a halt. CREDIT: Emilio Godoy/IPS

The construction and operation of the Central Combined Cycle Plant, of the state Federal Electricity Commission, financed with public funds, unleashed a conflict with residents of Huexca, a small community in the central Mexican state of Morelos, which has brought the operation of the thermoelectric plant to a halt. CREDIT: Emilio Godoy/IPS

Energy reform pillar

The energy reform that then conservative president Enrique Peña Nieto (2012-2018) enacted in 2013 opened the sector to private capital, broke the monopoly of the state-owned Petroleos Mexicanos (Pemex) oil giant and CFE, and made Mexico an attractive market for international investment in the sector.

To support this transformation, the state development banks also opened their coffers.´

Since 2012, Banobras, which finances infrastructure and public works and services, has lent at least 721 million dollars for the construction of gas pipelines, 10.2 billion dollars for oil and gas projects, 251 million dollars for electrical cogeneration, from steam generated in hydrocarbon plants, and eight million dollars for the construction of a thermoelectric plant that will burn fuel oil in the northwestern state of Baja California Sur.

Bancomext, which provides financing to exporters, importers and nine strategic sectors, has delivered some 500,000 dollars to oil companies in the eastern state of Tamaulipas and another 446 million dollars in Mexico City. It has also provided 65.4 million dollars to gas initiatives in the northern state of Nuevo Leon and 626.7 million dollars in Mexico City.

In addition, it has contributed 1.5 billion dollars for the supply of gas through pipelines to the final consumer; 324 million dollars for the extraction of oil and gas; 216 million dollars for the construction of public works for oil and gas; 126 million dollars for the manufacture of products derived from oil and coal; nearly seven million dollars for oil refining; 0.65 million dollars for the commercialisation of fuels; 0.25 million dollars for the drilling and maintenance of hydrocarbon wells; as well as 0.25 million dollars for oil platform maintenance and services.

In February, Bancomext granted a loan of 7.1 million dollars to Grupo Diarqco, in what it presented as the first credit to a private Mexican company in the industry, to exploit an oil field in the southeastern state of Tabasco.

Nafin, which grants credits and guarantees to public and private projects, created in 2014 the Energy Impulse Programme for these initiatives, endowed with more than a billion dollars.

It also manages, along with the economy ministry, the Public Trust to Promote the Development of Energy Industry National Suppliers and Contractors, designed for the industrial promotion of local production chains and direct investment in the energy industry, which this year has a fund of some 41 million dollars.

Missing: social and environmental safeguards

As in the case of the Morelos Integral Project, the gas pipelines have been a source of conflict with local communities, arising from the lack of socio-environmental safeguards and standards to guarantee that a project and its financing will respect the human rights of potentially affected communities.

Nafin and Banobras lack such safeguards, while Bacomext has had an “Environmental and Social Risk Management System Guide” since 2017, with no evidence of whether and how it has been applied to energy projects financed since then.

Since 2003, three platforms of international standards have emerged, to which Mexico’s development banks have not adhered, on human rights; social and environmental assessments and impacts; the application of safeguards; stakeholder participation; complaint resolution; and transparency.

The planet needs 80 percent of the global hydrocarbon reserves to stay underground in order for the temperature increase to remain at 1.5 degrees Celsius, as set out in the Paris Agreement on climate change.

The treaty, signed by 196 countries and territories in 2015, will enter into force at year-end and is considered indispensable to avoid irreversible climate disasters and human catastrophes.

Liliana Estrada, a researcher with the Climate Finance Group of Latin America and the Caribbean, told IPS that most investment in energy still goes to fossil fuels.

“After the reform, they have to enter into strategic projects and follow the guidelines of the government; they cannot go against these strategic lines. The gas and gas pipelines became strategic,” with the boost to the megaprojects of the López Obrador administration, said the representative of this coalition of non-governmental organisations and academics.

These credits are part of the fossil fuel subsidies that Mexico has pledged, to several international bodies, to eliminate.

The Mexican energy industry has also attracted international private banks, which have lent 55.95 billion dollars to 12 corporations, according to “Banking on Climate Change: Fossil Fuel Finance Report 2020”, released in March by six international environmental organisations.

The CFE received some 5.4 billion dollars from 12 banks between 2016 and 2019, and Pemex received 48.3 billion dollars from 20 foreign banks.

Based on Huexca’s experience, Castellanos demanded that these investments be stopped.

“If it’s our company, as the government says, then we can close it down. We have to defend the space in which we live, because we only have one planet and it belongs to all of us, it belongs to every living being, and it is our obligation to contribute something to this planet, because we are only here for a short while, we are guests of the earth”, she said.

Estrada called for sustainable financing regulations and questioned the lack of government leadership in this regard.

“Development banks must have safeguards and principles for sustainable investment,” she said. “National regulations are needed, which define climate finance and green finance, what principles govern them, what are the climate risks. The trend should be to increasingly finance green projects and less and less hydrocarbons.”

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‘The most potent weapon in the hands of the oppressor is the mind of the oppressed’

By: Andrew Ngozo

It is about mind slavery. Once you make a person hate themselves and who they are, (referring to their ‘cultural history’) you don’t need to kill or put them in prison because you’ve made them their own worst enemy.

The oppression of the mind is the most powerful tool you can use to break a person.

In the late 19th Century, Europeans flooded into Africa with the sole intention of ‘bringing light into the dark continent’. Be that as it may have been, it did not mean that Africa then was a backward landmass for we had advanced socio-political and socio-economic systems that had been in place and sustained society since time immemorial. Concerning the Europeans’ arrival and escapades in Africa,  John Henrik Clarke, an African-American historian, professor, and a pioneer in the creation of Pan-African and Africana studies, said: “They laughed at your clothes; and made you change your clothes, they laughed at your names; and made you change your name; but more importantly they laughed at your God; and made you change your God.” From an African point of view, Africa never was, is, or will be a laughing stock despite all the challenges and the shortcomings we face.

The continent has to reject the notion that being modern and civilized means imitating the west. It is the 21st Century and while most African nations have adopted the language, political ideology, socio-economic structures, education and everything that makes up a nation, even down to popular culture, from the west, we still have a total dependency on our own traditional political philosophies and ideas and their shifts and movements.

However, it is sad to note that this is largely evident in rural communities and in the poorer countries of the continent and not in metropolises and richer countries.

Africa Has Above-Standard Intellectual Theories

That Africa has taken to western norms and cultures, makes John Henrik Clarke’s statement about the West laughing at us ever so true today.

Whatever the West normalises eventually trickles down to Africa and is adopted as a norm. essentially, this means that, slowly, Africa continues to be slowly emptied of its essence, and becoming a relic, no different in substance from a statue or a museum.

As Africans, we should strongly desist from persuading the rest of the world to believe that anything from our continent is inferior.

For instance, celebrations of Africa on the international scene mostly involve dancing, music, traditional fashion, and other cultural artifacts.

Africans hardly ever showcase African-originated economic ideas, social ideologies, or intellectual theories.

It is not that these do not exist, but the world has successfully convinced everyone that everything African is substandard.

Echoes of 19th Century Colonists  

It is the age of the Fourth Industrial Revolution and we are told that its either you adapt or you die. African leaders are telling us that the way of the west is ‘modern and civilised’.

They echo the 19th Century colonialists who dismissed African civilisations as backward, barbaric and uncivilised. Sadly, this is becoming Africa’s reality.

Westerners, aided by our very own, tell us that our institutions are corrupt, that our societies are patriarchal, and that the African traditional religions are heathen.

To echo John Henrik Clarke’s remarks, they are, indeed, laughing at us.

However, this is of little concern to Africa’s elites.

For them, what matters is to find what the political currency is in the US or Europe, and to uncritically follow it.

Whereas people in the west are de-emphasising patriotism and nationalism, Africans need these to build sustainable nations.

Ultimately, we need to look into traditional African systems and extract coherent policies that can help form workable and uniquely African social and systems.

This is the only viable path to preventing the continent from fully becoming western Africa – and the only way to ending the continent’s long-term political decay.

Let Africa not be like them. As we celebrate Africa Month in May, let Mother Africa rise up to become the powerhouse that it is destined to be with all its sons and daughter.

Let Africa be the one to have the last laugh for they have been laughing at us for centuries but we shall serve them no longer.

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Checkmate! China’s Coronavirus Connection

Asia-Pacific, Civil Society, Development & Aid, Featured, Global, Headlines, Health, TerraViva United Nations

Opinion

Dr Simi Mehta is the CEO and Editorial Director of Impact and Policy Research Institute (IMPRI), New Delhi. She can be reached at simi@impriindia.org.

Handover ceremony at UN compound in Beijing for donation of critical medical supplies to the Chinese government. Credit: UNDP China

NEW DELHI, May 20 2020 (IPS) – Coronavirus outbreaks in China and later across the globe have been unprecedented in both its scale and impacts. In the era of changing world order, this pandemic has drawn the global attention towards the threats posed by the non-traditional security challenges.


All military prowess and records of economic progress have been rendered impotent vis-à-vis the coronavirus disease. With a total of around 5 million cases worldwide (and only about 83,000 in China), the wheels of power display of major powers like the US, China, Russia, Spain, France, Germany, Italy have come to a grinding halt.

The objectives of national health policy, health security of the countries, including the concept of collective health security of the World Health Organization (WHO), and the United Nations have raised questions on their seriousness, claimed efficacy and efficiency.

Regarding the origins of the virus, there have been different narratives. This article analyses the discourse claiming that research and development programmes for medicine, vaccines, and treatment for health risks and planning and investment for intensive research on bioweapons by major powers led to the creation of the dangerous strand of contagion called the novel coronavirus.

Allegations on China

There is no denying that the place where it all originated was in Wuhan, China. Thousands of people began to suffer with a respiratory illness that could not be cured. The WHO has described coronavirus as part of the family of viruses, which ranges from the common cold to Middle East Respiratory Syndromes (MERS) and SARS.

It has the capability to transmit between animals and humans. Very soon, a school of thought contrary to the claims of the Chinese government that it was in the wet market selling exotic and wild animals- including bats, that was the cause of this pandemic, began to emerge.

However, counter-claims posit that The Wuhan Institute of Virology National Biosafety Laboratory in the vicinity of the wet market had deliberately created this virus. What raises arguments in favour of the counter-claims include: China did not raise an alarm globally about the existence, leave aside spread of the virus until major outbreaks were reported from late January 2020 onwards.

Various conspiracy theories have been circulating that this virus was made to escape the laboratory as bio-weapons either by accident or design. Some reports have also claimed that this virus was originally stolen by Chinese agents from Canadian laboratory in July 2019, which has level 4 of biosafety- dealing with the most dangerous pathogens for which there are few available vaccines or treatments, similar to that possessed by the Wuhan laboratory.

Further, it has rejected international fact-finding mission into its country. Newspapers like the Wall Street Journal and The New York Times and the Washington Post have suffered collateral damage and some of their employees have been asked to wind up their operations in the country.

Even academic research papers on coronavirus has borne the brunt by the gag-order of the Chinese authorities to intervene in the independence of the scientific process. Those research articles focusing on the COVID-19 have to now undergo extra vetting before they are submitted for publication.

As a result, the initial global empathy for the Chinese suffering from the wrath of this virus steadily turned into suspicion and panic. This culminated into pent up anger seeking reparations from China for being culpable for the origin and spread of COVID-19.

Unfazed by Chinese criticism, US President Donald Trump eloquently named the coronavirus as the Chinese virus. He has also accused the WHO of siding with China in hiding the facts and suspended its contribution to the multi-lateral body and said that the WHO “should be ashamed of themselves because they are like the public-relations agency for China.”.

Calls for an international investigation to know the ‘truth’ behind the origin and spread of the virus have become intense. With its one-party authoritarian system, China was initially on the defensive and flagrantly refused all such calls; which, in effect added to the case in point that there is ‘something’ that it wanted to hide from the rest of the world.

However, with growing international pressures and the most recent draft resolution led by Australia and the EU and supported by 122 countries at the World Health Assembly of WHO, China finally relented and agreed to the call for a “comprehensive review” of COVID-19 pandemic in an “objective and impartial manner”.

It is even pointing to the proactive help it is providing to several countries, in terms of sending protective gears, face masks, gloves, etc. However, complaints have been raised as several of these have malfunctioned and/or were defective.

Conclusion

In 1919 George A. Soper1 wrote that the deadly Spanish Flu pandemic that swept around the earth was without any precedents, and that there had been no such catastrophe ‘so sudden, so devastating and so universal’. He remarked that, “The most astonishing thing about the pandemic was the complete mystery which surrounded it. Nobody seemed to know what the disease was, where it came from or how to stop it. Anxious minds are inquiring today whether another wave of it will come again”.

With close to 3 million positive cases and around 0.2 million deaths worldwide, the coronavirus has compelled people to draw parallels with the history of lethal viruses like the 1918 Spanish flu.

This great human tragedy created by COVID-19 is compounded because of the absence of a definitive cure and/or a vaccine. Experts opine that it would be possible only by the first quarter of 2021. The prevailing obscurity in China with respect to the causes of origin and global spread of the virus has led to conspiracy theories to emanate from various parts of the international community. Demands have begun to be made to hold China accountable for the health crisis and that it should pay the countries of the world for their health and economic hardships.

Trump has indicated that the US has begun its investigations to claim ‘substantial’ damages from China as the ‘whole situation could have been stopped at the source’. The champion of having China included in the world system- Henry Kissinger warned that COVID-19 was a danger to the liberal international order.

Even a veteran Cabinet Minister of Government of India, Nitin Gadkari stated in an interview to a private news channel that the coronavirus is ‘not a natural virus, rather it emerged from a lab’.

This, perhaps explains India’s cautious next steps of charging its northern neighbour China as the country responsible for the manufacture of the virus that has brought incredible and unprecedented mayhem in the lives, livelihoods and economies around the world.

Therefore, it would be in the best interests of China to ensure transparency and allow international investigations into the disease, as it is totally unbecoming of permanent member of the UN Security Council wielding veto powers.

The worldwide panic created by the prevailing health insecurity would redefine the meaning, definition and practical implications for programmes and policy of all countries of the world. Putting it into perspective, the global health management body- the WHO needs to be reformed, and so should the UN Security Council.

It remains to be seen how the world navigates through the crisis and whether comprehensive public health would figure in their national security agendas in the post-COVID-19 world order. Nonetheless, it is time that the multilateral agencies take suo moto cognizance of the havoc created by China and act as per the norms of international law for ensuring collective security.

1 Major George A. Soper was Sanitation Engineer with Department of Health, USA. His area of specialty included study of typhoid fever epidemics. He was also the managing director of American Cancer Society from 1923 to 1928.

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Why Creditors Should Cancel All of Africa’s Foreign Debt (Part II of III)

by Aklog Birara (Dr.)
Part II of III

Africa Debt

Africa Debt

Part II of III

This commentary is the second of a series setting the background on Africa’s foreign debt. In graduate school at the School of Advanced International Studies (SAIS) of the Johns Hopkins University where the emphasis was on political economy and regional studies, I used to argue with my distinguished professors that Africa’s abject poverty was a function of untold oppression, suffering, theft and robbery by European colonialism, outright racism and the colonialists’ divisive schemes and institutions that persist to this day.

The policy, structural and institutional hurdles of the transatlantic slave trade that enriched Europeans, North American Whites and Latin American Hispanics and that kept Blacks trapped in a cycle of perpetual poverty remain intact. The ugly face of institutional racism in the United States is now wide open; and has been aggravated by COVID-19. One would have thought rightly that, by this time in the 21st century, African-Americans, Black immigrants, Indians and other Asians and Hispanics who contribute to the richness of American society would no longer face racism and or marginalization.

Africa is home to one of the world’s largest youthful populations. Given a conducive policy and political environment, I am convinced that this human capital has enormous potential to transform Africa’s economy; and to make abject history a story of Africa’s past. Among the requisite transformative ingredients is to shed the outdated development paradigm of development that caters to political elites and to global capital. Africans need to embrace a development model that caters to community, humanity, human worth, equity and sustainability. Africa cannot afford to adhere to the opposite development model.

I remember attending high school in Pennsylvania, college in Indiana and graduate school in Washington D.C, all in the midst of liberal of scholarships from the generous people of the United States, that there were two powerful civil rights movements and ideologies on two sides of the Atlantic: the one led by Dr. Martin Luther King in the USA and the other in Africa championed by Pan-Africanists such as Kwame Nkrumah, Julius Nyerere, Patrice Lumumba, Amilcar Cabral and others. Cabral understood best the corrosive and oppressive nature of colonialism, imperialism and racism. He said this: “The colonists usually say that it was they who brought us into history: today we show that this is not so.” I never for once accepted the value-added of the colonialist narrative of “a civilizing mission and role” in Africa or anywhere else. I understood its exploitative nature though.

Major colonial powers that divided Africa among themselves like a piece of merchandise, notably, Belgium, France, Great Britain, Holland, Portugal, Spain and the late comer to the conquest, Fascist Italy and earlier Turkey under the Ottoman empire as well as imperial Japan and Nazi Germany have all participated in massive brutalities, killings, dehumanization and subjugations of hundreds of millions of peoples; and in the exploitation of minerals and other natural resources, in the marginalization of indigenous peoples and their communities most notably in Africa, Asia, the Caribbean and other places. These conquerors and colonizers created artificial boundaries in many countries in Africa. They planted the seeds of ethnic and religious divisions that remain hurdles to this day. They inflicted psychological scars that still need healing. They robbed artifacts and took them to their homelands. They deliberately and systematically degraded local and indigenous creativity, innovation and institutions.

In the case of the massive slave trade, there has not been repentance for dehumanization, degradation and for crimes against humanity. Despite huge efforts among African-Americans, the demand for reparation has not come to fruition.

I shall always remember Walter Rodney’s classic book, “How Europe Underdeveloped Africa” in which he says “Many guilty consciences have been created by the slave trade. Europeans know that they carried on the slave trade, and Africans are aware that the trade would have been impossible if certain Africans did not cooperate with slave ships. To ease their guilty consciences, Europeans try to throw the major responsibility for the slave trade on to the Africans. One major author on the slave trade (appropriately titled Sins of Our Fathers) explained how many white people urged him to state that the trade was the responsibility of African chiefs, and that Europeans merely turned up to buy captives- as though without European demand there would have been captives sitting on the beach by the millions! Issues… can be correctly approached only after understanding that Europe became the center of a world-wide system and that it was European capitalism which set slavery and the Atlantic slave trade in motion.” This mindset of blaming the oppressed is preserved and prompted.

The slave trade paved the way for the outright annexations of lands and the exploitation of Africa’s minerals such as gem stones, diamonds, gold, copper, high value industrial commodities that contributed immensely to European, North American other Western country rapid manufacturing and industrialization. Trade relations between Africa and Europe reflected Europe’s dominance and Africa’s dependence, governance that needs overhauling.

“From the beginning, Europe assumed the power to make decisions within the international trading system. An excellent illustration of that is the fact that the so-called international law which governed the conduct of nations on the high seas was nothing else but European law. Africans did not participate in its making, and in many instances, African people were simply the victims, for the law recognized them only as transportable merchandise. …. Above all, European decision-making power was exercised in selecting what Africa should export – in accordance with European needs.” This too needs overhaling.

Things have changed dramatically since then. This is because African nations have alternatives to trade their commodities and to import what they need, for example, from non-traditional sources such as China and India. Despite this alternative that allows African nations to make hard choices, sustainable growth and development in Africa is still weak and uncertainty looms large, especially when unexpected and cataclysmic events such as COVID-19 occur.

If we flip the situation though, COVID-19 offers African nations to ask the hard and inevitable question of whether or it is not time for African nations to translate Pan-Africanism into a concrete set of new narratives and projects that would bring substantial socioeconomic resiliency for Africans as a whole. The Organization of African Unity (the OAU) has already evolved into the next phase of Pan-Africanism, namely, into the African Union (AU) that Nkrumah, Nyerere and Haile Selassie had hoped for. Today, this Pan-African organization acts as the sole representative and collective voice for Africans. If scaled-up, I suggest that the AU will have greater weight, leverage and potential impact in global governance than individual nations. In order to win and to compete, Africa needs to abandon national fragmentation.

As a collective body, the AU can, for example:

  • Demand that Africa’s huge debt burden should are cancelled;
  • Refuse to accept colonial agreements on trades and tariffs; and claim market access;
  • Demand that colonial Agreements, for example, the one on the inequitable, unjust and unfair Nile River Agreement of 1959 that Egypt and its backers support should be determined only by Stakeholders, including African riparian nations;
  • Negotiate for fair trade for Africa’s immense resources including minerals;
  • Demand that developed nations stop polluting Africa’s rich soil and refrain degrading the environment as a precondition for investing in Africa;
  • Demand that external powers stop proxy wars and pitting one ethnic or religious group against another, displacing indigenous groups from their lands when and if they invest in any African nation; and sanction them if they do not abide by guidelines that the AU can and should issue;
  • Demand that European, Middle Eastern, North American nations and China stop dehumanizing and mistreating African students and or migrant workers; and sanction discriminatory treatment of all Africans;
  • Urge wealthy nations to keep Africa in mind in the development and fair and effective distribution of a vaccine or vaccines to combat COVID-19; and them to invite representatives from the AU so that Africa is not left out from access when such a vaccine is discovered and approved for use; and,
  • Demand that nations that are identified as hiding places of the billions of dollars stolen from and taken out of Africa through illicit transactions cooperate with African nations so that stolen monies are returned to the rightful nation.

These suggestions might sound wishful. It will not be if and when the AU determines to be bold and innovative enough and spearheads transformation that will lead to the formalization of an African Economic Union (AEU) similar to that of the European Union (AU). The AU must recognize by now that scale does matter for Africa’s survival and prosperity.

You may rightfully ask “Why worry about Africa at all?”

Africa is no longer the “Dark Continent” depicted in Tarzan like movies. It is an emerging and dynamic continent with more than 1 billion people. By all accounts, it is a developmental frontier. It has potential to contribute to the global common good in multiple ways.

This emerging African development is now adversely impacted by the pandemic. Africa has to deal with the same and common enemy, the pandemic that afflicts the rest of the globe. As I urged in this commentary, each African nation cannot do it alone. The global economy faces a depression type recession. This affects the entire Africa.

Africa, especially Sub-Saharan Africa, does not possess the monetary and financial resources and the health infrastructural to deal with COVID-19.

Below are four economic variables that affect all African countries:

  1. Commodity prices such as petroleum and gas, copper and cocoa, coffee and others have declined significantly.
  2. Income from tourism that accounts for 5-10 percent of GDP in Cape Verde, Egypt, Ethiopia, Kenya, Morocco, Rwanda, Seychelles, South Africa and Tunisia respectively, employing in excess of 1 million Africans has virtually stopped.
  3. Remittances constitute 5 percent of Africa’s GDP. According to a 2018 study by Brookings, Africa received a staggering $85 billion from remittances, compared to $50 billion in Official Development Assistance (ODA).

Remittances support families. Remittances generate foreign exchange and enhance development. Remittances help governments offset foreign exchange shortfalls, etc.

Early statistics from remittances transfer companies from the U.K. to Eastern Africa shows a decline of 80 percent in remittance transfers. Gulf countries have begun to expel migrant workers, thereby compounding the remittance short fall. Experts tend to believe that remitters from rich countries enjoy a safety net that may mitigate losses. This too is debatable. In the U.S. job losses from the pandemic affect more than thirty-six million people with no end in sight.

  1. Foreign private investors have started pulling hundreds of billions of dollars from developing nations, including Africa.

Estimates of job losses for developing nations emanating from pull back that is driven by the pandemic are in excess of 150 million, the brunt borne by youth.

  1. The debt burden and debt repayment services picture loom large; and is a huge drag on Africa’s economies.

This huge drag requires bold and life changing interventions. Africa as a whole, and especially Sub-Saharan Africa faces two interrelated problems at the same time.

  • Africa faced a financial and economic crisis that persisted before COVID-19 and that remained unresolved; and
  • It now faces a public health crisis that threatens the lives of millions of Africans.

First thing first though. The possible loss of 4 million lives in SSA from COVID-19 that is estimated by the UK’s famous Imperial College modelers is gruesome. It must be prevented at all cost. Even if all efforts are carried out by governments and the world community, the minimum number of African lives that could be lost as a result of the pandemic is forecast at 800,000. Infections among Ethiopians are estimated at 1.4 million. There is no projection in terms of deaths from COVID-19.

On April 17, 2020, the United Nations Economic Commission for Africa (ECA) reported that “Anywhere between 300,000 and 3.3 million African people could lose their lives as a direct result of COVID-19. Rates projected by Trinity College and by the ECA depend entirely on the timing, efficiency and effectiveness of intervention measures taken to stop the spread the pandemic. The slower the response, the higher the death rate.

Let me summarize this commentary with caution but with a positive note. Africa must concentrate on prevention. In this regard:

  • It is commendable that Ethiopia is doing all it can to prevent massive deaths and the spreads of the virus using its limited resources in order to mitigate the damage through early monitoring and constant testing.
  • I also appreciate the fact that the Ethiopian Diaspora is heavily involved by mobilizing and provisioning preventive tools, knowledge and financial resources. It needs to do much more.
  • In some countries, ordinary citizens do not seem to understand the magnitude of COVID-19. For example, in Malawi, it is reported that “thousands of informal workers took to the streets to protest the regimes newly announced 21-day lockdown measures… which prevent the workers from earning income, that will in turn cause these workers and their families to go hungry.” Ethiopians should be cautious too.
  • I am encouraged that the Government of Ethiopia is providing air transport to thousands of Ethiopian migrant workers from Lebanon; all African nations need to do the same. The long-term solution is to create an empowering environment in Ethiopia and contain migration out.
  • It is important to note that, ‘without enhanced social safety nets, the livelihoods and lives of informal workers and their families across” SSA are under constant threat. Social distancing measures that are easier in high income countries in the West, China, Japan and other rich nations are more difficult to enforce in SSA countries.
  • The government of Uganda has been more successful in enforcing and extending lockdown measures and in banning public transportation until May 5, 2020. Ugandan borders and airports remain closed to all except cargo and emergency flights. Uganda has applied lessons from its Ebola experiences; and has also instituted food delivery mechanisms to its citizens. I worry a great deal about food-security and self-sufficiency in Ethiopia and other African nations owing to the Pandemic and to the devastating effects of wide-spread locust swarms in Eastern Africa; we need to finance food banks.
  • Two countries, Botswana and Cameroon have announced large-scale prisoner releases in the forms of pardons and/or sentence reductions. The country of Guinea announced that the wearing of masks in public would now be mandatory, with violators facing a fine of 30,000 Guinean francs (about $3).
  • Kenya announced a similar measure, threatening a fine of 20,000 Kenyan shillings (about $200) and/or a jail term of six months for offenders.
  • Positive measures similar to Ethiopia include Kenyan and South African and Zimbabwean government decisions to carryout widespread, mass testing efforts.
  • The African Union’s Africa Centers for Disease Control and Prevention (Africa CDC) announced a plan to distribute one million (1) testing kits across the continent. Africa CDC director Dr. John Nkengasong announced that “Over the next three months or six months, we probably need like 15 million tests, however, a journey of 1,000 miles starts with the first mile.”
  • African governments are doing their level best to mitigate the devastation projected by Trinity College modelers.

Part III of this series will focus on the effects of the Pandemic on the economies of African nations. I shall also propose a set of recommendations for creditors to consider.

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Housing is Both a Prevention & Cure for COVID-19

Civil Society, Development & Aid, Editors’ Choice, Featured, Global, Global Governance, Headlines, IPS UN: Inside the Glasshouse, Poverty & SDGs, TerraViva United Nations

Opinion

Maimunah Mohd Sharif is United Nations Under-Secretary-General and Executive Director of UN-Habitat & Leilani Farha is the former UN Special Rapporteur on the Right to Adequate Housing, and Global Director of The Shift.

The Bijoy Sarani Railway Slum in Dhaka, Bangladesh. Credit: UNHabitat/Kirsten Milhahn

NAIROBI, Kenya, May 13 2020 (IPS) – Public health officials are calling the “stay home” policy the sacrifice of our generation. To flatten the curve of COVID-19 infections, this call of duty is now emblazoned on t-shirts, in street art and a celebrity hashtag.


But for the 1.8 billion people around the world living in homelessness and inadequate shelter, an appeal to “stay home” as an act of public health solidarity, is simply not possible. Such a call serves to highlight stark and long-standing inequalities in the housing market. It underscores that the human right to shelter is a life or death matter.

Throughout this global pandemic, governments are relying on access to adequate housing to slow the viral spread through self-isolating or social distancing policies. Yet, living conditions in poor or inadequate housing actually create a higher risk of infection whether from overcrowding which inhibits physical distancing or a lack of proper sanitation that makes regular hand-washing difficult.

At the most extreme, people experiencing homelessness must choose between sleeping rough or in shelters where physical distancing and adequate personal hygiene are almost impossible. Homeless populations and people living in inadequate housing often already suffer from chronic diseases and underlying conditions that make COVID-19 even more deadly.

It is now clear, housing is both prevention and cure – and a matter of life and death – in the face of COVID-19. Governments must take steps to protect people who are the most vulnerable to the pandemic by providing adequate shelter where it is lacking and ensuring the housed do not become homeless because of the economic consequences of the pandemic.

These crucial measures include stopping all evictions, postponing eviction court proceedings, prohibiting utility shut-offs and ensuring renters and mortgage payers do not accrue insurmountable debt during lockdowns.

In addition, vacant housing and hotel rooms should be allocated to people experiencing homelessness or fleeing domestic violence. Basic health care should be provided to people living in homelessness regardless of citizenship status and cash transfers should be established for people in urgent need.

Steps should be quickly taken to establish emergency handwashing facilities and health care services for at-risk and underserved communities and informal settlements.

In many cities and countries, emergency measures are already moving in this direction.

Berlin opened a hostel to temporarily house up to 200 homeless people, catering to all nationalities. The Welsh government pledged GBP10 million to local councils for emergency homeless housing by block booking empty lodging like hotels and student dormitories.

A woman outside a community run water facility in Old Town, Accra Ghana. Credit: UNHabitat/Kirsten Milhahn

In South Africa where under half of all households have access to basic handwashing facilities and in Kenya, where it is under a quarter of households, governments are increasing access to water for residents living in rural areas and informal settlements by providing water tanks, standpipes, and sanitation services in public spaces.

Many jurisdictions, such as Canada’s province of British Columbia, have suspended evictions. The eviction ban means landlords cannot issue a new notice to end a tenancy for any reason and existing orders will not be enforced.

Spain, France, the United Kingdom and the United States have announced mortgage postponements in an effort to curb potential defaults.

National and local governments are also working with the private sector to tackle housing issues. For example, Singaporean firms with government backing are providing accommodation for Malaysian workers who had been commuting to Singapore daily.

And as they are no tourists in Barcelona, the city has agreed with the Association of Barcelona Tourist Apartments to allocate 200 apartments for emergency housing for vulnerable families, homeless people and those affected by domestic violence.

Some cities are leveraging citizen solidarity. Residents of Los Angeles are making hand-washing stations for homeless people living in a depressed area known as Skid Row which are installed and maintained by a local community centre.

All of these urgent measures and more are desperately needed and demonstrate the way in which housing is inherently connected to our collective public health. These successful interventions also show concrete ways that governments and communities can effectively tackle the pre-existing global housing crisis – a crisis which affected at least 1.8 billion people worldwide, even before the pandemic.

In 2018 the European Federation of National Organisations Working with the Homeless reported that homelessness had skyrocketed across the continent. In the United States, 500,000 people are currently homeless, 40 per cent of whom are unsheltered.

In April last year, the Organization for Economic Cooperation and Development (OECD) warned that rent is currently the biggest expense for households accounting on average for one-third of their income. In the last two decades, housing prices have grown three times faster than incomes.

The current global housing system treats housing as a commodity. In times of crisis, the inefficiencies of the market are clear with the public sector expected to absorb liabilities.

This is not sustainable and many cities are struggling to find shelter for their citizens. COVID-19 has brought into sharp relief the housing paradox – in a time when people are in n desperate need for shelter, apartments and houses sit empty. This market aberration needs correcting.

Governments are at a crossroads. They can treat COVID-19 as an acute emergency and address immediate needs without grappling with hard questions and fundamental questions about the global housing system.

Or they can take legislative and policy decisions to address immediate needs, while also addressing the present housing system’s structural inequalities, putting in place long term ‘rights-based’ solutions to address our collective right to adequate shelter. Housing must be affordable, accessible and adequate.

COVID-19 is unlikely to be the last pandemic or global crisis that we face. What we do now will shape the cities we live in, and how resilient we will be in the future.

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