UN Continues Financial Ties with a Vilified Russia Isolated by the International Community — Global Issues

Credit: United Nations
  • by Thalif Deen (united nations)
  • Inter Press Service

UN Secretary-General Antonio Guterres was emphatic last month when he remarked: “The use of force by one country against another is the repudiation of the principles that every country has committed to uphold. This applies to the present military offensive. It is wrong. It is against the Charter. It is unacceptable”.

And while the US and Western European nations have cut off all commercial and financial ties with Russia— treating Moscow as an international pariah– the UN Secretariat is continuing its multi-million-dollar contracts with a blacklisted Russia.

Metaphorically speaking, it triggers the question: does the UN’s right hand know what its left foot is up to?

The goods and services from Russia are primarily air transportation, mostly helicopters, including maintenance and servicing; information and communication technologies (ICT); and food catering, largely for the UN’s 12 peacekeeping missions.

Asked if the UN had received a letter from the Ukrainian Mission urging the Secretariat to end its procurements from Russia, UN Spokesperson Stephane Dujarric told reporters last month: “We did receive, earlier in March, a petition by the Permanent Mission of Ukraine to us, to quote, “immediately suspend all non essential procurement cooperation of the UN with the Russian Federation.”

“We responded to the Permanent Mission of Ukraine a few days later that the procuring of goods and services and works by the UN Secretariat, is in accordance with the mandate given to us by the General Assembly and in with the Financial Regulations of the UN, which requires such procurement actions to be done on the basis of best value for money, fairness, integrity and transparency, and effective international competition.”

He also pointed out that “it’s no secret that a lot of our aviation procurement for peacekeeping and just logistics comes from the Russian Federation, with also quite a bit from Ukraine.”

“The rules are set by the General Assembly, and we follow those rules. So, our position is set by the rules… the financial rules that we have… that we follow… The rules say procurement actions are done on the basis of best value for money, fairness, integrity and transparency, and effective international competition”.

But the 193-member General Assembly, the UN’s highest policy-making body, is missing in action (MIA) — or perhaps planning to pass the buck to the UN’s Administrative and Budgetary Committee.

Asked for a response to comments from the UN Spokesperson‘s office, Christian Saunders, Assistant Secretary General for Supply Chain Management at the Department of Operational Support, told IPS: “The information provided during the briefing by the UN spokesperson remains valid.”

According to the latest available figures, the UN’s purchases from Russia amounted to about $115.6 million in 2021, with Moscow listed as the 5th largest supplier behind the US, United Arab Emirates (UAE), Kenya and Switzerland.

The breakdown is as follows: US ($456.2 million), UAE ($329.3 million), Kenya ($192.4 million), Switzerland ($182.3 million) and Russia ($115.6 million).

The UN also has trade links with Russia’s largest helicopter operator, UTair – Helicopter Services, described as a leading provider of aviation services to companies in the fuel and energy industries, plus the United Nations.

Last year, the UN Procurement Division (UNPD) called for tenders for the following contracts in aviation procurement, where Russia has remained a front-runner.

One Medium Fixed Wing Turboprop Passenger Aircraft Support of UNISFA for a period of one year Plus two optional extension periods of one year each.

An Air Ambulance Aircraft Service with Guaranteed Availability based in Europe in support of UN Operations, for a period of three months, plus three optional extension periods of three months each.

A second Air Ambulance Aircraft Service with Guaranteed Availability based in Accra, Ghana in support of UN Operations, for a period of three months plus three optional extension periods of three months each.

Meanwhile, the approved budget for UN Peacekeeping operations for the fiscal year 1 July 2021 – 30 June 2022 is a staggering $6.38 billion. (A/C.5/75/25)—and payments to Russian contractors will flow largely from this budget.

But one question cries out for an answer: how will the UN pay for these purchases and services when Russians have been barred from most of the international banking system?

Speaking of Russia’s isolation at the UN, US Ambassador Linda Thomas-Greenfield told reporters May 3: “We have been successful in isolating Russia in the Security Council, and that’s a significant success. We have been successful in unifying the voices condemning Russia in the General Assembly, but it came about because there was so much support for it in the Security Council. And getting 141 votes to support that effort was a significant success for all of us””.

“And we have been successful in unifying the UN in suspending Russia from the Human Rights Council. Russia is isolated in the Security Council, and every time we have a discussion in the Security Council as it relates to Russia, they are on the defensive and we will continue to keep them on the defensive until they end their brutal attack on the Ukrainian people”.

Last week Russia was suspended from the UN World Tourism Organization (UNETO), shortly after Moscow announced it had decided to quit in anticipation of the suspension.

Ian Williams, President of the Foreign Press Association, told IPS it is difficult within the rule, but the UN can be notoriously slow in paying its bills which might be appropriate in this case.

“But they do need an official body to bar contracts for Russian companies to protect staff involved and to ward off breach of contract. It is hard to leave it to the courage, or caprice, of UN bureaucrats”.

The UN had no compunction in hiring a CIA founded company to run UN missions along the Iraq-Kuwait border despite Iraqi protests at the UN, said Williams, author of ‘Untold: The Real Story of the United Nations in Peace and War.’

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Rich Continent, Poor People — Global Issues

  • Opinion by Jomo Kwame Sundaram (kuala lumpur, malaysia)
  • Inter Press Service

Out of Africa

On the trail of capital flight from Africa extends pioneering work begun much earlier. The editors – Leonce Ndikumana and James Boyce – estimate Sub-Saharan Africa (SSA) has lost more than US$2 trillion to capital flight in the last half century!

SSA currently loses US$65 billion annually – more than yearly official development assistance (ODA) inflows. The book’s studies carefully investigate natural resource exploitation – of South African minerals, Ivorian cocoa, and Angolan oil and diamonds.

Such forensic country analyses are crucial to more effectively check capital flight. Outflows since the 1980s from the three countries have been massive: US$103 billion from Angola, US$55 billion from Cote d’Ivoire, and US$329 billion from South Africa in 2018 dollars.

Capital flight has been much more than cumulative external debt. Annual outflows were between 3.3% and 5.3% of national income. Nigeria, South Africa and Angola account for the most capital outflows from SSA, with Cote d’Ivoire seventh.

Resource booms

As governments get more revenue from natural resources, the fiscal ‘social contract’ is eroded. When people pay taxes, they expect state spending to benefit the public. But with more revenue from resources – via state monopolies, royalties and taxes – governments become less accountable to their own citizens.

Gaining and maintaining access to foreign credit has similar effects. Developing country governments then focus on ingratiating themselves with friendly foreign donor governments to get ODA, and on enhancing their credit ratings.

Hence, such regimes have less political need to provide ‘public goods’, including services, let alone accelerate social progress. Thus, erosion of the fiscal ‘social contract’ undermines not only public wellbeing, but also state legitimacy.

To secure power, ruling cliques often rely on ‘clientelism’ – patronage or patron-client relations – typically on regional, ethnic, tribal, religious or sectarian lines. Their regimes inevitably provoke dissent – including oppositional ethno-populism and civil unrest, even armed insurgencies.

Unsurprisingly, such regimes believe their choices are limited. Another option is repression – which typically rises as the status quo is threatened. The resulting sense of insecurity spreads from the public to the elite, worsening capital flight.

Exploiting valuable natural resources not only generates export earnings, but also attracts foreign investments. One result is ‘Dutch disease’ as the national currency rises in value – reducing other exports and jobs, inevitably hurting development prospects.

Thus, vast private fortunes have been made and illicitly transferred abroad. Ruling elites and their allies rarely only rely on either state or market to become richer. The book shows how both state and market strengthen private and personal power and influence.

Plundering Africa

The book’s case studies show how resource extraction has been central to capital flight. In all three countries, the efficacy of fiscal policy tools – especially to foster investments for development – has been undermined.

Outflows have increased with economic liberalization, as unrecorded financial outflows – via the current account – grow with freer trade. Thus, trade-related financial transactions enable corruption and capital flight.

In Côte d’Ivoire – the world’s top cocoa producer – rents initially came from supply chains connecting farmers to consumers. Corrupt partnerships – connecting domestic elites to foreign businesses – have been crucial to such arrangements.

Thus, natural resource primary commodity exports have enabled illicit capital flows. Ivorian cocoa exports have been consistently under-reported – with trade statistics of major importers showing massive under-invoicing by exporters.

Post-colonial political settlements have given a few privileged access to resource rents. With capital flight thus enabled, successive Ivorian regimes have been less obliged to spend more on development or public wellbeing.

Due to the cocoa boom, the post-colonial ‘Ivorian miracle’ ended when prices fell. The bust triggered a political crisis, culminating in civil war. But the crunch also meant the country could no longer service its foreign debt.

In Angola too, natural resources worsened its protracted civil wars. After these ruinous conflicts, oil rents enriched the triumphant nepotistic regime. This enabled the control to gain control of more, even as most Angolans continued to live in destitution.

Angola’s massive oil exports mainly benefited the small elite of cronies around the president. They failed to develop the economy or improve most lives. All this has been enabled by ‘helpful’ professionals who have enriched themselves doing so.

While benefiting its elite and foreign transnationals, Angola’s ‘oil curse’ has blocked balanced and sustainable development of its economy. Despite rapidly depleting its oil reserves, Angola and most Angolans have benefited little.

South Africa – SSA’s second largest economy after Nigeria – seems less reliant on natural resources. Post-apartheid economic liberalization has enabled capital flight as private corporate interests – especially the influential minerals-energy complex – quickly took advantage of the new dispensation.

By under-invoicing their exports, mineral interests have been engaged in massive capital flight and tax evasion. Meanwhile, business cronies have enriched themselves in new ways, e.g., in the state’s electric power sector. Such abuses were exposed by the Gupta family scandal, leading to then President Jacob Zuma’s downfall.

Stemming capital flight

‘State capture’ by politically influential nationals have undermined government regulatory capacities with help from transnational enablers. Ostensible ‘good governance’ reforms have enabled capital flight and tax evasion – by undermining ‘developmental governance’, including prudential regulation.

Institutional environments, mechanisms and enablers facilitate capital flight, tax evasion and wealth accumulation offshore. With often complex, varied and changing facilitation, capital flight has shifted massive wealth abroad for elites.

Transnational financial networks have eased capital outflows – at the expense of productive investments, good jobs and social wellbeing. Capital flight has worsened financing, including budgetary gaps – aggravating related social deprivations.

Wealth creation enhances the economic pie, but distribution depends on who appropriates it. Improved understanding of such varied and ever-changing relations of appropriation is crucial to effectively curb this haemorrhage.

Greater awareness should inspire and inform better measures to check capital flight from the global South. Instead of the Washington Consensus ‘good governance’ mantra, a developmental governance agenda is needed.

Hence, curbing capital flight is crucial for financing sustainable development. Checking capital flight and related abuses – such as trade mis-invoicing, money laundering, tax evasion and public asset acquisition by elites – requires well-coordinated efforts at both national and international levels.

All researchers, policymakers and regulators will gain from the book’s forensic analyses of financial, fiscal and other such abuses. International financial institutions now have little excuse for continuing to enable the capital flight and tax evasion still bleeding the global South.

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World Press Freedom Faces a Perfect Storm — Global Issues

  • Opinion by Farhana Haque Rahman (toronto, canada)
  • Inter Press Service

A similar pattern is seen in Bangladesh where suspected narco-traffickers killed Bangladeshi journalist Mohiuddin Sarker Nayeem on April 13.

The Committee to Protect Journalists publishes an annual Global Impunity Index and notes that no one has been held to account in 81% of journalist murders worldwide over the past 10 years. Somalia tops the list, with Mexico ranked 6th and Bangladesh 11th.

State-sponsored or tolerated violence and political persecution aside, world press freedom is also being eroded in an insidious way in places where such freedoms are commonly understood to be vital in sustaining well-functioning democracies. Coupled with the apparently unstoppable rise of social media as a source of information – some surveys suggest 50% of adults in the US and UK get their news from social media – the state of much of the traditional press, digital or not, is far from healthy.

The annual Digital News Report by the Reuters Institute for the Study of Journalism found the US ranked last in media trust, at 29%, among 92,000 news consumers polled in 46 countries. (Finland came top).

Governments must not be passive while the same powerful corporate lobbies that have spent fortunes over decades spreading climate dis/misinformation in traditional media now feed on the rapacity of Big Tech social media, which are failing to disclose comprehensive policies to combat this. Climate disinformation as a threat to climate action is highlighted in the latest UN Climate Reports.

Press offices of international organisations, particularly the UN and large INGOs, also have a particular responsibility to uphold media freedom by eschewing the corporate dark arts of delay, denial and obfuscation.

A new proposal by the EU executive to protect journalists and campaigners from so-called vexatious lawsuits is highly welcome. The move would target “strategic lawsuits against public participation” known as Slapps, where the rich misuse legal means to silence troublesome investigative reporters and NGOs.

No press freedom, no democracy. Just like freedom of speech, that does not mean a free press can publish whatever it wants. Both need to be defined and, in these very dark times, defended.

Farhana Haque Rahman is Senior Vice President of IPS Inter Press Service and Executive Director IPS North America, including it’s UN Bureau; she served as the elected Director General of IPS from 2015-2019. A journalist and communications expert, she is a former senior official of the United Nations Food and Agriculture Organization and the International Fund for Agricultural Development.

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Act for Justice, Climate & Peace — Global Issues

  • Opinion by Lysa John, Oli Henman (london / johannesburg)
  • Inter Press Service

Millions of people are directly affected. They face fragile circumstances, with immeasurable sadness caused by the death of loved ones, loss of livelihoods, displacement, destruction of homes, interruption of education, and more.

The conflict has also placed huge new burdens on the multilateral system, putting a further break on progress towards the achievement of the Sustainable Development Goals that has already been set back by the negative impacts of the COVID-19 pandemic.

Civil society representatives from both Ukraine and Russia have expressed their deep concerns about the needless suffering caused by the war. In Ukraine, they are responding to the situation in vital ways, from documenting war crimes and gathering information about missing persons to urging international institutions to live up to their responsibilities on peace and accountability.

In Russia, civil society has exposed media restrictions that have helped create a disinformation nightmare while protesting against the injustice of war.

The impacts of this conflict are being felt far beyond the war zones. Disruptions in international commerce are feeding inflation and food insecurity around the world disproportionately impacting the impoverished and excluded.

In this scenario, civil society groups across all continents have come together to support a five-point call for action issued by the Action for Sustainable Development coalition.

The message to the international community is simple:

We call for an immediate end to the war in Ukraine, a ceasefire and a withdrawal of Russian forces, and the phased removal of all sanctions according to an agreed timeline. The devastation of many cities and the killing of innocent civilians and civilian infrastructure cannot be justified.

Furthermore, it is unacceptable and insufficient that so far only a handful of men – and visibly no women – appear to have been involved in the peace negotiations.

We call for the peace negotiations to include civil society and representatives of those who are directly affected, especially from Ukraine and Russia, and particularly women.

    2. Respect international human rights

We stand in solidarity with the people of Ukraine. The rights of civilians must be respected. After more than a month of conflict, the humanitarian impacts are leading to massive displacement of people, loss of lives and livelihoods. We are very concerned that this grave violation of international law will have an extremely adverse impact on security and democracy in Europe and the world.

We also call for human rights to be respected in Russia. Many Russian people have stood up to condemn violence and their voices must be heard. Peaceful protest must be recognised as a legitimate form of expression.

We call for human rights to be fully respected in Ukraine and Russia, including international humanitarian rights and civic freedoms.

    3. Stop militarism and aggression around the world

The rise in militarism and conflict is not limited to Russia. It is part of a growing catalogue of armed conflict. Violence in all its forms – authoritarianism, corruption and indiscriminate repression – affects the lives of millions of people around the globe and violates the human rights of people young and old in countries including: Afghanistan, Brazil, Central African Republic, Colombia, El Salvador, Ethiopia, Guatemala, Myanmar, Nicaragua, Palestine, South Sudan, Syria and Yemen, to name just a few.

These conflicts often affect communities already living with fragile infrastructure and the devastating impacts of climate change. All conflicts must be treated with the same level of concern. The lives of everyone affected by conflict are of equal value.

We call for the same level of support to end conflicts and ensure financial support for displaced peoples and refugees from all conflicts.

    4. Shift military funds to a just and sustainable future

The war in Ukraine has already had a devastating impact on the world economy, especially on global south countries. There are likely to be major disruptions and significant increases in the costs of energy and production, and increased food costs. At the same time budgets are being redirected towards military spending.

The militarism of Russia is fuelled by fossil fuels and it is therefore critical to halt investment in fossil fuels and shift immediately to renewable forms of energy. It is crucially important that we reduce oil and gas consumption and rapidly scale up investments in renewables in order to combat the climate crisis, and that we do so immediately.

We call for a specific commitment at the UN to reduce spending on military conflicts and to reinvest this spending on social protection and clean energy.

    5. Establish a global peace fund

We call on member states to remember the founding vision of the UN and its Security Council, to deliver on the main reason it was created: to avoid any kind of war and the suffering of humankind.

The 2030 Agenda sets out a path towards a peaceful, just, sustainable and prosperous world. much more ambitious steps and actions must be undertaken to ensure that its targets and goals are met.

We call on member states to establish a global peace fund to strengthen the role of international mediators and peacekeepers. The UN must act!

The international community cannot be a bystander in Ukraine or any other conflict. We all have a responsibility to defend universal human rights and humanitarian principles by acting against cruelty and injustice wherever it may be.

Link to full statement here:
https://action4sd.org/2022/04/04/statement-of-solidarity-with-civilian-populations-and-a-call-for-a-negotiated-end-to-the-war-in-ukraine/

Oli Henman is the Global Coordinator the Action for Sustainable Development coalition in London. Lysa John is the Secretary General of the global civil society alliance, CIVICUS in Johannesburg.

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