The Energy Dilemmas of Roraima, a Unique Part of Brazils Amazon Region — Global Issues

A riverside park in Boa Vista, which would probably disappear with the construction of the Bem Querer hydroelectric plant, 120 kilometers downstream on the Branco River. The projection is that the reservoir would flood part of the capital of the state of Roraima, in the extreme north of Brazil. CREDIT: Mario Osava/IPS
  • by Mario Osava (boa vista, brazil)
  • Inter Press Service

The oil that the U.S. company ExxonMobil discovered off the coast of Guyana since 2015 generates wealth that will cross borders and extend to Roraima, already linked to Venezuela by energy and migration issues, predicted the economist, the former secretary of planning in the local government from 2004 to 2014.

Roraima, Brazil’s northernmost state, which forms part of the Amazon rainforest, is unique for sharing a border with these two South American countries on the Caribbean Sea and because 19 percent of its 224,300 square kilometers of territory is covered by grasslands, in contrast to the image of the lush green Amazon jungle.

It is also the only one of Brazil’s 26 states not connected to the national power grid, SIN, which provides electricity shared by almost the entire country. This energy isolation means the power supply has been unstable and has caused uncertainty in the search for solutions in the face of sometimes clashing interests.

From 2001 to 2019 it relied on imported electricity from Venezuela, from the Guri hydroelectric plant, whose decline led to frequent blackouts until the suspension of the contract two years before it was scheduled to end.

The closure of this source of electricity forced the state to accelerate the operation of old and new diesel, natural gas and biomass thermoelectric power plants. It also helped fuel the proliferation of solar power plants and the debate on cleaner and less expensive alternatives.

In search of energy alternatives

Against this backdrop, the Roraima Alternative Energy Forum emerged, promoted by the non-governmental Socio-environmental Institute (ISA) and the Climate and Society Institute (ICS) and involving members of the business community, engineers from the Federal University of Roraima (UFRR) and individuals, indigenous leaders and other stakeholders.

The objectives range from influencing sectoral policies and stimulating renewable sources in the local market to monitoring government decisions for isolated systems, such as the one in Roraima, as well as proposing measures to reduce the costs and environmental damage of such systems.

“Not everyone (in the Forum) is opposed to the construction of the Bem Querer hydroelectric plant, but there is a consensus that there is a lack of information to evaluate its benefits for society and whether they justify the huge investment in the project,” biologist Ciro Campos, an ISA analyst and one of the Forum’s coordinators, told IPS.

Bem Querer, a power plant with the capacity to generate 650 megawatts, three times the demand of Roraima, is the solution advocated by the central government to guarantee a local power supply while providing the surplus to the rest of the country.

For this reason, the project is presented as inseparable from the transmission line between Manaus, capital of the state of Amazonas with a population of 2.2 million, and Boa Vista, the capital of Roraima, population 437,000. The line involves 721 kilometers of cables that would connect Roraima to the national grid.

“In its design, Bem Querer looks towards Manaus, not Roraima,” Campos complained, ruling out a necessary link between the power plant and the transmission line. “We could connect to the SIN, but with a safe and autonomous model, not dependent on the national system” and subject to negative effects for the environment and development, he argued.

Hydroelectric damage

The plant would dam the Branco River, the state’s main water source, to form a 519-square-kilometer reservoir, according to the governmental Energy Research Company (EPE). It would even flood part of Boa Vista, some 120 kilometers upstream.

The hydropower plant would both meet the goal of covering the state’s entire demand for electricity and abolish the use of fossil fuels, diesel and natural gas, which account for 79 percent of the energy consumed in the state, according to the distribution company, Roraima Energia.

But it would have severe environmental and social impacts. “It would make the riparian forests disappear,” which are almost unique in the extensive savannah area, locally called “lavrado,” of grasses and sparse trees, said Reinaldo Imbrozio, a forestry engineer with the National Institute of Amazonian Research (Inpa).

In addition to the flooding of parts of Boa Vista, the flooding of the Branco and Cauamé rivers, which surround the city, will directly affect nine indigenous territories and will have an indirect impact on others, complained Edinho Macuxi, general coordinator of the Indigenous Council of Roraima (CIR), which represents 465 communities of 10 native peoples.

The CIR, together with ISA and the ICS, built two solar energy projects in the villages and carried out studies on the wind potential, already recognized in the indigenous territories of northern Roraima.

“The main objective of our initiatives is to prove to the central government that we don’t need Bem Querer or other hydroelectric projects…that represent less land and more confusion, more energy and less food for us,” he stressed to IPS at CIR headquarters.

“We will have to leave, said the engineers who were here for the studies of the river,” said Alfredo Cruz, owner of a restaurant on the banks of the Branco River, about five kilometers upstream from the site chosen for the dam. At that spot visitors can swim in the dry season, when the water level in the river is low.

The rapids there show the slight slope of the rocky riverbed. It is a flat river, without waterfalls, which means a larger reservoir. The heavy flow would be used to generate electricity in a run-of-river power plant.

Cruz inherited his restaurant and house from his great-grandfather. The title to the land dates back to 1912, he said. But they will be left under water if the hydroelectric plant is built, even though they are now located several meters above the normal level of the river, he lamented.

Riverside dwellers, fishermen and indigenous people will suffer the effects, Imbozio told IPS. The property of large landowners and people who own mansions will also be flooded, but they have been guaranteed good compensation, he added.

What the Forum’s Campos proposes is the promotion of renewable sources, without giving up diesel and natural gas thermoelectric plants for the time being, but reducing their share in the mix in the long term, and ruling out the Bem Querer dam, which he said is too costly and harmful.

Energy issues will influence the future of Roraima, according to Professor Amoras. The most environmentally viable hydroelectric plants, such as one suggested on the Cotingo River, in the northeast of the state, with a high water fall, including a canyon, are banned because they are located in indigenous territory, he said.

Oil wealth, route to the Caribbean

In the neighboring countries, oil wealth opens a market for Brazilian exports and, through their ports, access to the Caribbean. The Guyanese economy will grow 48 percent this year, according to the World Bank.

Roraima’s exports have grown significantly in recent years, although they reached just a few tens of millions of dollars last year.

Guyana’s small population of 790,000, the unpaved road connecting it to Roraima and the fact that the language there is English make doing business with Guyana difficult, but relations are expanding thanks to oil money.

This will pave the way to the Caribbean Community (CARICOM), whose scale does not attract transnational corporations, but will interest Roraima companies, said Fabio Martinez, deputy secretary of planning in the Roraima state government.

Venezuela expanded its imports from Roraima, of local products or from other parts of Brazil, because U.S. embargoes restricted trade via ports and thus favored sales across the land border, he said.

“The liberalization of trade with the United States and Colombia will now affect our exports, but a recovery of the Venezuelan economy and the rise of oil can compensate for the losses,” Martinez said.

Roraima is a new agricultural frontier in Brazil and its soybean production is growing rapidly. But “we want to export products with added value, to develop agribusiness,” said Martinez.

That will require more energy, which in Roraima is subsidized, costing consumers in the rest of Brazil two billion reais (380 million dollars) a year. If the state is connected to the national grid through the transmission line from Manaus, there will be “more availability, but electricity will become more expensive in Roraima,” he warned.

© Inter Press Service (2022) — All Rights ReservedOriginal source: Inter Press Service

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Biogas Spreads Among Cuban Families as an Alternative Energy

  • by Luis Brizuela (candelaria, cuba)
  • Inter Press Service

The biodigester in the back of her house in the rural community of Carambola, Candelaria municipality in the province of Artemisa, 80 kilometers west of Havana, brings Rojas the benefits of not using firewood and electricity for cooking, with the consequent reduction in electric bills and cooking time.

It was built in 2011 with the help of her husband Edegni Puche, who worked in the installation of the gas pipes and other aspects.

Rojas and Puche, who raise pigs and grow fruits and vegetables on their small family farm, were advised by specialists from the Cuban Society for the Promotion of Renewable Energy Sources and Respect for the Environment (Cubasolar) and the Movement of Biogas Users (MUB).

Rojas also received materials from the municipal government and the local pig company to build the small-scale Chinese-type fixed-dome biodigester of about six cubic meters in size.

She estimates that the total cost of the project ranged between 500 and 600 dollars at the exchange rate at the time.

Construction costs depend on the size, type and thickness of the material, as well as the characteristics of the site.

However, experts estimate that the average minimum cost for the construction of a small-scale biodigester – which more than covers the cooking needs of a household – currently stands at around 1,000 dollars in a country with an average monthly salary equivalent to 160 dollars at the official exchange rate.

Rojas says that “before, when we cleaned the pens, the manure, urine and waste from the pigs’ food piled up in the open air, in a corner of the yard. It stank and there were a lot of flies.”

The organic matter is now decomposed anaerobically by bacteria, but in a closed, non-polluting environment that provides methane gas as an energy resource, instead of releasing it into the atmosphere.

Thanks to the alternative energy source Rojas can also keep her nails painted and her hair clean for longer.

It also helped her husband and two young children become more involved in household chores, cleaning the yard and taking care of the animals on the family farm, “and created greater awareness of environmental care.”

In addition, biogas technology provides biol and biosol – liquid effluent and sludge, respectively – which are ideal for fertilizing and restoring soils, “as well as watering and keeping plants green,” says Rojas, who has a lush garden where she grows varieties of exotic orchids.

Her biodigester has also proven useful to the community, because when there are blackouts due to tropical cyclones that frequently affect the island, “neighbors have come to heat up water and cook their food,” she adds.

There are an estimated 5,000 biodigesters in Cuba, with the potential to expand the network to 20,000 units, at least the small-scale ones, according to conservative estimates by experts.

More than 90 percent of Cuba’s electricity comes from burning fossil fuels in aging thermoelectric plants and diesel and fuel oil engines, in a nation where a significant percentage of the 3.9 million homes use electric power as the main energy source for cooking and heating water for bathing.

© Inter Press Service (2022) — All Rights ReservedOriginal source: Inter Press Service

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Promoting Innovation & New Technologies — Global Issues

  • Opinion by A.H. Monjurul Kabir (new york)
  • Inter Press Service

Obviously, the rule of law is a key driver of inclusive, equitable, and sustainable development, and empowers people from all strata of life to seek and obtain justice. Doing more with less is posing a challenge here. We are operating in an increasingly connected yet complex global and national settings and fiscally fragile environment.

Our traditional structures, systems and processes are proving to be inadequate to deal with new developmental challenges, pandemics, inaccessibility and exclusions, conflicts, and humanitarian crisis. Our governance and justice systems are not the most transparent and data friendly domain. Bringing that information to light is no easy task.

Barriers to Governance and Rule of Law

As indicated before, there are many barriers to accessing public services and ensuring accessible public health, rule of law, especially where there are high levels of poverty, marginalization, and insecurity. Governance institutions – formal and informal – may be biased or discriminatory. Public governance systems may be ineffective, slow, and untrustworthy.

In the last 3 years of pandemic, we also realized our public health system is often crippled by lack of investment, inclusive and accessible initiatives, and innovation. Discriminatory decision making and exclusivity further complicated the situation at all levels. People may lack knowledge about their rights.

Often legal assistance and consumer protection are out of reach, leaving people with little recourse to formal mechanisms for protection and empowerment. There may be a culture of impunity for criminal acts, unacceptable level of tolerance for exclusionary practices.

Other discriminations, injustices, and abuses in the family, or through deprivation and labour exploitation, may go unaddressed. Despite all these, more can be done to ensure that they benefit from the inclusive governance and public health work, and, rule of law practices, which expand their opportunities and choices.

Quest for New Ideas …

Despite all these, more can be done to ensure that the most vulnerable and disadvantaged groups benefit from inclusive public health, legal empowerment, and access to justice, which expand their opportunities and choices.

We need fresh ideas, resources, and unconventional ways of collecting and analyzing data, such as using micro-narratives or innovative, accessible public hearings, targeted consultations, to complement traditional mechanisms including surveys. But innovation is rapidly becoming the new buzzword, so I would be careful in applying it here:

    • Innovation is not cost-free and takes time so it should be mainstreamed:
    • Innovation is both science and arts. And it should be seen as a standalone practice. one of the biggest problems that public sector innovation faces today is that governments have de facto created a ‘class of innovators,’ rather than making innovation an inclusive process that is open to anyone who has the motivation and capacity to influence change. This must change.
    • Repackaging or reproduction is not innovation unless it caters to the specific needs of vulnerable and marginalized communities which are not supported by existing mechanisms and services.
    • What is innovative in Bangladesh, Turkey, and Tanzania may not be so in India, Turkmenistan, Senegal, or Mexico;
    • Big data is important but harnessing it for the right cause should be central consideration. Linking it with better evidence base is of critical significance. The COVID-19 challenges amply demonstrated it.
    • Going beyond social networking is key – while Facebook, Twitter and other Social Media outlets play an admirable role in connecting people, these are not enough to solving a protracted problem and sustaining a solution. We must also be mindful of the recent trend of using social media to silence public defenders, journalists, and whistle blowers. The twitter is a case in point (December 2022).
    • Innovative ideas, while refreshing, need to be pragmatic so that they can be implemented. They mast be part of a solution, not the overall problem.
    • Evidence of impact is more important than the novelty factor.

Innovation and New Technologies for Solutions

My own take is that ideas do not need to be always transformational or revolutionary. Our platforms can replicate or even recycle what already works by introducing successful models to new actors and environments.

Even seemingly ordinary things can become innovative in different terms, approaches, or settings. linking inclusion to innovation is not only about looking at how it can advance policies and create better impact for governments, but also about giving people, public servants, and citizens alike, the self-efficacy, power, and freedom to direct change in the way they see necessary. This contributes directly to the making of inclusive development.

New technologies are changing the lives of people around the world. In the same way that they make daily tasks simpler, they can make official and routine interactions with government institutions, service providers easier and can provide innovative solutions to a host of public sector governance, public health, and rule of law challenges.

Technology has an immense untapped potential to strengthen inclusive practices for governance including public health governance, and the rule of law. Technological innovation must provide equal access to services, help to eliminate discrimination, and assure more transparency and accountability. They must not be used to silence voices, deny human rights, or create justifications for maladministration, inaccessibility, and exclusions.

As we are approaching 2023 in a few days, let us hope for a more inclusive and diverse public sector governance rooted in human rights values and practices.

Dr. A.H. Monjurul Kabir, currently UN System Coordination Adviser and Global Team Leader for Gender Equality, Disability Inclusion/Intersectionality at UN Women HQ in New York, is a thought leader, political scientist and senior policy and legal analyst on global issues and regional trends. For policy and academic purpose, he can be contacted at [email protected]. He can be followed in twitter at mkabir2011

IPS UN Bureau


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© Inter Press Service (2022) — All Rights ReservedOriginal source: Inter Press Service



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Biodiversity Agreement Historic But Difficult to Implement — Global Issues

Government delegations celebrate the close of the historic negotiation at COP15 of the New Global Framework on Biodiversity in the early hours of the morning on Monday Dec. 19, at the Palais des Congrès in Montreal, Canada. CREDIT: Mike Muzurakis/IISD
  • by Emilio Godoy (montreal)
  • Inter Press Service

Its fate now depends on the new Kunming-Montreal Global Framework on Biodiversity, which was agreed by the 15th Conference of the Parties (COP15) to the Convention on Biological Diversity (CBD) on Monday Dec. 19, at the end of the summit held since Dec. 7 at the Palais des Congrès in Montreal.

Now, the world’s countries must translate the results into national biodiversity strategies, to comply with the new accord. In this regard, David Ainsworth, spokesman for the CBD, in force since 1993 and based in Montreal, announced the creation of a global accelerator for the drafting of national plans, with the support of U.N. agencies.

The menu of agreements

COP15, whose theme was “Ecological Civilization: Building a shared future for all life on earth”, approved four objectives on improving the status of biodiversity, reducing species extinction, fair and appropriate sharing of benefits from access to and use of genetic resources, and means of implementation of the agreement.

In addition, the plenary of the summit, which brought together some 15,000 people representing governments, non-governmental organizations, academia, international bodies and companies, agreed on 23 goals within the Global Framework, for the conservation and management of 30 percent of terrestrial areas and 30 percent of marine areas by 2030, in what is known in U.N. jargon as the 30×30.

This includes the complete or partial restoration of at least 30 percent of degraded terrestrial and marine ecosystems, as well as the reduction of the loss of areas of high biological importance to almost zero.

Likewise, the agreement reached by the 196 States Parties at COP15 includes the halving of food waste, the elimination or reform of at least 500 billion dollars a year in subsidies harmful to biodiversity, and at least 200 billion dollars in funding for biodiversity by 2030 from public and private sources.

It also endorsed increasing financial transfers from countries of the industrialized North to nations of the developing South by at least 20 billion dollars by 2025 and 30 billion dollars by 2030, and the voluntary publication by companies for monitoring, evaluation and disclosure of the impact of their activities on biodiversity.

The Global Environment Facility (GEF) will manage a new fund, whose operation will be defined by the countries over the next two years.

With regard to digital sequence information (DSI) on genetic resources, the Global Framework stipulates the establishment of a multilateral fund for benefit-sharing between providers and users of genetic resources and states that governments will define the final figure at COP16 in Turkey in 2024.

The Global Framework also contains gender and youth perspectives, two strong demands of the process that was initially scheduled to end in the city of Kunming, China, in 2020. But because that country was unable to host mass meetings due to its zero-tolerance policy towards COVID-19, a first virtual chapter was held there and another later in person, and the final one now took place in Montreal.

The states parties are required to report at least every five years on their national compliance with the Global Framework. The CBD will include national information submitted in February 2026 and June 2029 in its status and trend reports.

With some differences, civil society organizations and indigenous peoples gave a nod to the Global Framework, but issued warnings. Viviana Figueroa, representative of the International Indigenous Forum on Biodiversity, and Simone Lovera, policy director of the Global Forest Coalition, applauded the agreement in conversations with IPS, while pointing out its risks.

“It’s a good step forward, because it recognizes the role of indigenous peoples, the use of biodiversity and the role of traditional knowledge,” said Figueroa, an Omaguaca indigenous lawyer from Argentina whose organization brings together indigenous groups from around the world to present their positions at international environmental meetings.

“It has been a long process, to which native peoples have contributed and have made proposals. The most important aspects that we proposed have been recognized and we hope to work together with the countries,” she added.

But, she remarked, “the most important thing will be the implementation.”

Goal C and targets one, three, five, nine, 13, 21 and 22 of the Global Framework relate to respect for the rights of native and local communities.

Lovera, whose organization brings together NGOs and indigenous groups, said the accord “recognizes the rights of indigenous peoples and local communities, and of women. It also includes a recommendation to withdraw subsidies and reduce public and private investments in destructive activities, such as large-scale cattle ranching and oil palm monoculture.”

But indigenous and human rights organizations have questioned the 30×30 approach on the grounds that it undermines ancestral rights, blocks access to aboriginal territories, and requires consultation and unpressured, informed consent for protected areas prior to any decision on the future of those areas.

Major challenge

While the Global Framework has indicators and monitoring mechanisms and is legally binding, it has no actual teeth, and the precedent of the failed Aichi Targets casts a shadow over its future, especially with the world’s poor track record on international agreements.

The Aichi Biodiversity Targets, adopted in 2010 in that Japanese city during the CBD’s COP10 and which its 196 states parties failed to meet in 2020, included the creation of terrestrial and marine protected areas; the fight against pollution and invasive species; respect for indigenous knowledge; and the restoration of damaged ecosystems.

Several estimates put the amount needed to protect biological heritage at 700 billion dollars, which means there is still an enormous gap to be closed.

In more than 30 years, the GEF has disbursed over 22 billion dollars and helped transfer another 120 billion dollars to more than 5,000 regional and national projects. For the new period starting in 2023, the fund is counting on some five billion dollars in financing.

In addition, the Small Grants Program has supported around 27,000 community initiatives in developing countries.

“There is little public funding, more is needed,” Lovera said. “It’s sad that they say the private sector must fund biodiversity. In indigenous territories money is needed. They can do much more than governments with less money. Direct support can be more effective and they will meet the commitments.”

The activist also criticized the use of offsets, a mechanism whereby one area can be destroyed and another can be restored elsewhere – already used in countries such as Chile, Colombia and Mexico.

“This system allows us to destroy 70 percent of the planet while preserving the other 30 percent,” Lovera said. “It is madness. For indigenous peoples and local communities, it is very negative, because they lose their own biodiversity and the compensation is of no use to them, because it happens somewhere else.”

Figueroa said institutions that already manage funds could create direct mechanisms for indigenous peoples, as is the case with the Small Grants Program.

Of the 609 commitments that organizations, companies and individuals have already made voluntarily at COP15, 303 are aimed at the conservation and restoration of terrestrial ecosystems, 188 at alliances, and 159 at adaptation to climate change and reduction of polluting emissions.

The summit also coincided with the 10th Meeting of the Conference of the Parties to the Cartagena Protocol on Biosafety and the 4th Meeting of the Conference of the Parties to the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits from their Utilization, both components of the CBD.

Images of the planet’s sixth mass extinction reflect the size of the challenge. More than a quarter of some 150,000 species on the IUCN Red List are threatened with extinction.

The “Living Planet Report 2022: Building a nature-positive society”, prepared by the WWF and the Institute of Zoology in London, shows that Latin America and the Caribbean has experienced the largest decline in monitored wildlife populations worldwide, with an average decline of 94 percent between 1970 and 2018.

With a decade to act, each passing day represents more biological wealth lost.

IPS produced this article with support from InternewsEarth Journalism Network.

© Inter Press Service (2022) — All Rights ReservedOriginal source: Inter Press Service

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New Political Agreement Finally Tackles Venezuela’s Social Crisis — Global Issues

The World Food Program has been active in Venezuela since last year, delivering bags of food to families of schoolchildren in some poor areas, such as remote areas accessed by river in the Arismedi municipality, in the southwestern plains state of Barinas. CREDIT: Gabriel Gómez/WFP
  • by Humberto Marquez (caracas)
  • Inter Press Service

When the pact was signed on Nov. 26, renowned nutritionist Susana Raffalli published a photograph of the legs of a girl whose height is eight centimeters shorter than what is appropriate for her age. “I measured her today. Her growth has been irreversibly stunted,” she said.

“Between the first announcement of the social roundtable (meetings to that purpose were already held in 2014) and the one signed today in Mexico, a generation of Venezuelans like her was born. The agreement is not a trophy. It is a commitment to hope,” Raffalli stated.

The Social Agreement signed in Mexico “is an important contribution, which could mean urgent aid for children, the elderly, the disabled and indigenous people, whose situation is extremely critical,” Roberto Patiño, founder of Alimenta la Solidaridad, a network of soup kitchens for children, told IPS.

The resources involved in the agreement are Venezuelan state funds frozen in the United States and European nations that in 2019 refused to accept the re-election of President Nicolás Maduro, in power since 2013, adopted sanctions and recognized opposition lawmaker Juan Guaidó as president.

Now, in talks between the government and the opposition, with the mediation of governments from this region and Norway, an agreement was reached to unfreeze part of the funds and allocate them to social programs under United Nations supervision.

The United States and European countries are participating in the deal as sanctioning parties and the UN as manager of the released funds and social programs covered by them.

“These are absolutely insufficient resources in the face of the crisis, but well-managed they can have a positive impact given the country’s complex humanitarian emergency,” Piero Trepiccione, coordinator of the network of social centers in Latin America and the Caribbean run by the Catholic Jesuit order Society of Jesus, told IPS.

The HumVenezuela Platform, made up of dozens of civil society organizations, has maintained since 2019 that the social situation in this South American country is a complex humanitarian emergency, based on its records on food, water and sanitation, health, basic education and living conditions.

The sharp deterioration in the living conditions in this country over the last decade has gone hand in hand with the decline of the Venezuelan economy – a collapsed oil industry and several years of hyperinflation – whose most visible international consequence has been the migration of seven million Venezuelans.

Barrier against life

In recent years, U.S. sanctions and the political clash with other governments, as in the case of Colombia, a neighbor with which the borders and the transit of people and goods were closed, have had a major impact.

For example, tragedy struck the low-income family of Michel Saraí, a five-year-old girl with pneumonia who was treated at a small hospital in La Fría, a small town in the southwest near the border with Colombia, which lacked the equipment needed for the necessary tests and treatment.

When her health took a turn for the worse on Nov. 30, her parents decided not to take her to the public hospital in the regional capital, San Cristóbal, because they did not have the dozens of dollars charged there to accept patients, who must bring their own supplies and pay for tests.

A Civil Defense ambulance, with fuel donated by a neighbor – gasoline is scarce in the state of Táchira and others – took the girl and her mother some 25 kilometers to the border bridge in the town of Boca de Grita, so that she could be treated free of charge in the cities of Cúcuta or Puerto Santander, on the Colombian side.

With the border formally closed, the Colombian military agreed to receive the ambulance due to the emergency, but the Venezuelan National Guard refused to allow passage of the vehicle carrying the little girl connected to oxygen.

“We had no money to offer them to see if they would let her get through,” the father, Jonathan Pernía, told local reporters a few days later.

In desperation, the mother and an aunt accepted what seemed like the only alternative: disconnecting her from the oxygen, placing her on a wheelbarrow – “as if she were a sack of potatoes,” Pernía lamented – and running with her through the rain to the Colombian side of the bridge, where another ambulance was waiting for them. But the little girl arrived without vital signs.

At the morgue of the hospital in San Cristobal her parents picked up the body. A week later they were still trying to find the money needed to pay the burial expenses.

Figures behind the crisis

In Venezuela, poverty – defined as those who cannot afford the basic food basket – currently affects 81.5 percent of the population (90.9 percent in 2021), according to the Living Conditions Survey of the Andrés Bello Catholic University, which surveyed 2300 households throughout the country. This is the first time in seven years that it has gone down, partly attributable to a rebound in the economy and remittances from migrants.

Meanwhile, multidimensional poverty – which takes into account housing, education, employment, services and income – fell from 65.2 percent in 2021 to 50.5 percent in 2022, and extreme poverty dropped from 68 percent in 2021 to 53.3 percent in 2022.

Venezuela is the most unequal country in the Americas, and along with Angola, Mozambique and Namibia is one of the most unequal in the world, as the richest 10 percent earn 70 times more (553.20 dollars per month on average) than the poorest 10 percent (7.90 dollars).

Seven million children are in school, down from 7.7 million in 2019, and an estimated 1.5 million children and adolescents are not in the educational system. Preschool and daycare coverage is just 56 percent.

The survey reported an improvement in formal employment and income this year, with average monthly earnings of 113 dollars for public employees, 142 dollars for the self-employed, and 150 dollars for people working in private sector companies.

As a consequence, food insecurity declined from 88 percent of Venezuelans worried about running out of food in 2021, to 78 percent, while the proportion of people who have gone a whole day without eating dropped to 14 percent, from 34 percent in 2021.

More than 90 percent of poor households have received food assistance from the government -especially carbohydrates- but only one third receive these products monthly.

In health, according to the survey, the use of public services is decreasing (70 percent) and health care is becoming more expensive because, while prices in private clinics are skyrocketing, 13 percent of those who turned to public services had to pay in outpatient clinics and 16 percent in hospitals, and in 65 percent of the cases they had to pay themselves for the medicine that was prescribed for them.

Mexican formula

Jorge Rodríguez, president of the legislative National Assembly and the ruling party’s lead negotiator, said that with the funds released after the agreement reached in Mexico, the infrastructure and materials in 2300 schools will be covered, and the vaccines required in accordance with the World Health Organization (WHO) guidelines will be purchased.

Medicine for oncological and HIV patients will be obtained, radiotherapy programs, blood banks and at least 21 hospitals will be revived, while more than one billion dollars will be allocated to the national electricity grid.

The World Food Program (WFP), meanwhile, which now delivers food to families of 100,000 schoolchildren in poor areas in the north of the country, hopes to raise funds to provide meals to more than one million people by the end of 2023.

According to Trepiccione, of the Jesuit network, resources should be directed “to the recovery of the infrastructure of hospitals and schools, which are in terrible condition, because that generates a chain of jobs, services and economic activity along with the obvious improvements in the provision of health care and the quality of education.”

“The same can be said of reactivating the electrical system, hit by blackouts that affect above all the economy and the life of people in the western part of the country,” he added.

Patiño, from the network of soup kitchens, said priorities were “programs for early childhood care, pregnant women, school feeding, as well as care for the elderly and indigenous communities, segments where many are dying too young due to lack of urgent health care.”

Government pensions, which are equal to the minimum wage, were equivalent to 30 dollars at the beginning of the year, but with the depreciation of the local currency they are equivalent to just nine dollars per month as of this December.

“We must also emphasize that this social agreement is absolutely insufficient in the face of the precarious conditions that exist in our country. These are resources that will be exhausted and the needs will not disappear,” said Patiño.

In his view, “the only thing that can really solve the crisis, the best possible social program, is a decent job, with a sufficient income and with a social security and public health program that takes care of the most needy.”

Funds for the agreement, frozen in banks in industrialized countries, will be released gradually under the supervision of a government-opposition committee and with UN agency management to tender, implement and oversee the programs, in 2023 and 2024.

And over the coming year new meetings will be held and further political agreements are expected, which may lead to an easing or lifting of sanctions and, eventually, to an improvement in the living conditions of Venezuela’s 28 million people.

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Unsustainable Infrastructure Threatens Biodiversity — Global Issues

Francis Ogwal (L) of Uganda and Basile van Havre (C) of Canada, co-chairs of the group responsible for drafting the post-2020 global biodiversity framework, explain the status of negotiations at the Palais des Congrès in Montreal on Dec. 14, 2022. Discussions are entering the final stretch to approve the new biodiversity protection targets. CREDIT: Emilio Godoy/IPS
  • by Emilio Godoy (montreal)
  • Inter Press Service

This ecosystem is under pressure from the construction of two of the seven routes of the Maya Train (TM), the Mexican government’s flagship megaproject, whose construction, which began in 2020, alters the environment of the Maya Forest, the largest tropical rainforest in Latin America after the Amazon.

This is recognized in two technical reports obtained in Mexico by IPS through public information requests, which state that, although the project is outside the marine area itself, it is located within its zone of influence.

Regarding the 257-km section 4, a document from October 2021 acknowledges the impact on two high priority hydrological regions.

And with respect to the impact on the 110-km section 5, another document dated from May 2022 states that “there is no previous study or information on the monitoring and sampling sites. The presence and state of the fauna that inhabit the trees are unknown.”

The MCBR administration recognizes impacts on two priority marine regions and on the coastline of the southeastern state of Quintana Roo, which is protected by the reserve.

For this reason, the MCBR refused to issue a technical opinion on section 5 due to lack of “sufficient information and elements” and, for T4, issued an opinion that demanded the presentation of additional data and prevention, management, and oversight measures.

Despite the impact that the railroad will have in the region, the government’s National Fund for Tourism Development (Fonatur) did not request reports from at least four other nature reserves.

Fonatur will be in charge of the TM, which will run for some 1,500 kilometers, with 21 stations and 14 stops, through five states in southern and southeastern Mexico.

The case of the railway exemplifies the contradictions between the attempt to protect nature and the development of infrastructure that sabotages that aim, a theme present at the 15th Conference of the Parties (COP15) of the United Nations Convention on Biological Diversity (CBD), which began on Dec. 7 in the Canadian city of Montreal and is due to end on Dec. 19.

Moreover, the railway’s cost of some 15 billion dollars is classified as forming part of the harmful subsidies to biodiversity, which total 542 billion dollars a year globally. The investment needed for the conservation and sustainable use of nature is estimated at 967 billion dollars a year.

In the post-2020 global biodiversity framework, which is due to be adopted at the summit, one of the main 21 measures being negotiated is called in UN jargon 30×30: the protection of 30 percent of the planet’s marine and terrestrial areas through conservation measures by 2030, in an attempt to halt the loss of biodiversity on the planet.

The plan has attracted support from more than 100 countries but has awakened distrust among indigenous peoples, who have suffered from the imposition of natural protected areas without due information and consultation.

The summit, which has brought together some 15,000 people representing governments, non-governmental organizations, academia, international organizations and companies, will also discuss the post-2020 global framework, financing for conservation and guidelines on digital sequencing of genetic material, degraded ecosystems, protected areas, endangered species, the role of corporations and gender equality.

The 196 States Parties to the CBD, in force since 1993 and whose slogan at this year’s COP is “Ecological civilization. Building a shared future for all life on earth”, have not yet agreed in Montreal on the percentage of the oceans that should be protected and whether it should include waters under international jurisdiction.

The global framework is to succeed the 20 Aichi Biodiversity Targets, adopted in 2010 in that Japanese city during the CBD COP10 and due to be met by 2020, which have failed. Target 11 stipulated the protection of 17 percent of terrestrial areas and inland waters and 10 percent of marine and coastal areas.

Insufficient rules

Manuel Pulgar Vidal of Peru, WWF global leader of Climate and Energy, who is attending COP15, said the problem lies in the regulation of protected areas.
“Nations such as Colombia, Ecuador and Chile have strengthened the system of natural areas. But in general the systems are weak and need to be reinforced, and money, staff and regulations are needed,” he told IPS.

Mexico has 185 protected areas, covering almost 91 million hectares -19 percent of the national territory-, six of which are marine areas, encompassing 69 million hectares. Despite their importance, the Mexican government dedicated less than one dollar per hectare to their protection in 2022.

In addition, management plans have not been updated to cover works such as the Maya Train.

Colombia, meanwhile, protects 15 percent of its territory in 1,483 protected areas covering 35.5 million hectares, including 12 million hectares in marine areas.

Chile, for its part, has 106 protected areas covering 15 million hectares of land – 20 percent of the total surface area – and 105 million hectares in the sea, in 22 of the conservation areas.

Among the 49 governments that make up the High Ambition Coalition (HAC) for Nature and People, aimed at promoting 30×30, are 10 Latin American countries: Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Guatemala, Mexico, Nicaragua, Panama and Peru.

Of the 586 commitments that organizations, companies and individuals have already made voluntarily at COP15, held at the Palais des Congrès in Montreal, only 93 deal with marine, coastal and freshwater ecosystems, while 294 address terrestrial ecosystem conservation and restoration; 185 involve alliances and partnerships; and climate change adaptation and emission reductions are the focus of 155.

Aleksandar Rankovic of the international NGO Avaaz said the key challenge goes beyond a specific protection figure.

“The hows are not in the debate. It’s up to each country how it will implement it. It’s left to each country to decide what’s appropriate. There is little openness on how to achieve the goals,” the activist from the U.S.-based organization dedicated to citizen activism on issues of global interest, such as biodiversity, told IPS.

Only eight percent of the world’s oceans are protected and only seven percent are protected from fishing activities. Avaaz calls for the care of 50 percent of marine and terrestrial areas, with the direct participation of indigenous peoples.

The protection of marine areas is tied to other international instruments, such as the Global Ocean Treaty, which nations have been negotiating since 2018 within the framework of the United Nations Convention on the Law of the Sea and which aims to protect 30 percent of these ecosystems by 2030.

Pulgar Vidal, for his part, called for the approval of the 30×30 scheme. “Implementing these initiatives takes time. And you need an international financing mechanism,” he stressed.

In Rankovic’s view, a strong global framework is needed. “The issue is broader, because fisheries are not well regulated. Without this, marine areas will be part of a weak program,” he warned.

COP15 has also coincided with the 10th Meeting of the Conference of the Parties to the Cartagena Protocol on Biosafety and the 4th Meeting of the Conference of the Parties to the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization, both components of the CBD and part of its architecture for preserving biodiversity.

IPS produced this article with support from InternewsEarth Journalism Network.

© Inter Press Service (2022) — All Rights ReservedOriginal source: Inter Press Service

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The Poor, Squeezed by 10 Trillion Dollars in External Debts — Global Issues

About 60% of the poorest countries are already at high risk of debt distress or already in distress. Credit: Pixabay.
  • by Baher Kamal (madrid)
  • Inter Press Service

Moreover, the debt-service payments, projected to top 62 billion US dollars in 2022, put the biggest squeeze on poor countries since 2000, according to the World Bank.

As defined by the Organization for Economic Cooperation and Development (OECD), debt service refers to payments in respect of both principal and interest.

Actual debt service is the set of payments actually made to satisfy a debt obligation, including principal, interest, and any late payment fees. Scheduled debt service is the set of payments, including principal and interest, that is required to be made through the life of the debt, OECD goes on.

High risk of debt stress

According to the World Bank’s report: International Debt Report, the poorest countries eligible to borrow from the World Bank’s International Development Association (IDA) now spend over a tenth of their export revenues to service their long-term public and publicly guaranteed external debt—the highest proportion since 2000.

In addition, rising interest rates and slowing global growth risk tipping a large number of countries into debt crises. “About 60% of the poorest countries are already at high risk of debt distress or already in distress.”

Over the past decade, the composition of debt owed by IDA countries has changed significantly. The share of external debt owed to private creditors has increased sharply. At the end of 2021, low- and middle-income economies owed 61% of their public and publicly guaranteed debt to private creditors—an increase of 15 percentage points from 2010.

Unbearable impact

The same day the World Bank’s report was released, 6 December 2022, another international institution: the UN Conference on Trade and Development (UNCTAD), warned that the spiralling debt in low and middle-income countries has compromised their chances of sustainable development.

Rebeca Grynspan, the head of this UN trade facilitation agency, reported that between 70% and 85% of the debt that emerging and low-income countries are responsible for, is in a foreign currency.

“This has left them highly vulnerable to the kind of large currency shocks that hit public spending – precisely at a time when populations need financial support from their governments.”

Speaking at the 13th UNCTAD Debt Management Conference, UNCTAD’s chief explained that so far this year, at least 88 countries have seen their currencies depreciate against the powerful US dollar, which is still the reserve currency of choice for many in times of global economic stress.

And in 31 of these countries, their currencies have dropped by more than 10 percent.

This has had a hugely negative impact on many African nations, where the UNCTAD chief noted that currency depreciations have increased the cost of debt repayments “by the equivalent of public health spending in the continent”.

Wave of global crises

UNCTAD’s conference –held online on 6 to 7 December in Geneva– took place as a “wave of global crises has led many developing countries to take on more debt to help citizens cope with the fallout.”

Government debt levels as a share of Gross Domestic Product (GDP) increased in over 100 developing countries between 2019 and 2021, said UNCTAD.

“Excluding China, this increase is estimated at about $2 trillion.”

This has not happened because of the bad behaviour of one country. This has happened because of systemic shocks that have hit many countries at the same time, Grynspan said.

Sharp rise of interest rates

With interest rates rising sharply, the debt crisis is putting enormous strain on public finances, especially in developing countries that need to invest in education, health care, their economies and adapting to climate change.

“Debt cannot and must not become an obstacle for achieving the 2030 Agenda and the climate transition the world desperately needs”, she argued.

UNCTAD advocates for the creation of a multilateral legal framework for debt restructuring and relief.

Such a framework is needed to facilitate timely and orderly debt crisis resolution with the involvement of all creditors, building on the debt reduction programme established by the Group of 20 major economies (G20) known as the Common Framework.

Debts to increase to 10 trillion dollars

UNCTAD said that if the median increase in rated sovereign debts since 2019 were fully reflected in interest payments, then governments would pay an additional 1.1 trillion US dollars on the global debt stock in 2023, estimates show.

This amount is almost four times the estimated annual investment of 250 billion US dollars required for climate adaptation and mitigation in developing countries, according to an UNCTAD report.

Indebted countries have reiterated once and again that they have already exceeded several times the total amount of their debts in the form of interest rates they have been paying.

Alongside a high number of economists and experts, they have reiterated their appeals for cancelling those debts.

Uselessly: such a fair –and due– step continues to fall on deaf ears.

© Inter Press Service (2022) — All Rights ReservedOriginal source: Inter Press Service

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Solar Energy Benefits Children and Indigenous People in Northern Brazil — Global Issues

Aerial view of the Municipal Theater of Boa Vista and its parking lot covered by solar panels, near the center of a city of wide avenues, empty spaces, abundant solar energy and high quality of life compared to other cities in Brazil’s Amazon region. In the background is seen the Branco River, which could be dammed 120 kilometers downstream for the construction of a hydroelectric plant that would flood part of the capital of the state of Roraima. CREDIT: Boa Vista city government
  • by Mario Osava (boa vista, brazil)
  • Inter Press Service

The local government of Boa Vista, a city of 437,000 people, installed seven solar power plants that bring annual savings of around 960,000 dollars.

“We have used these savings to invest in health, education and social action, which is the priority of the city government because we are ‘the capital of early childhood’,” said Thiago Amorim, municipal secretary of Public Services and Environment.

Solar panels have mushroomed on the roofs of public buildings and parking lots around the city. The largest unit was built on the outskirts of Boa Vista – a 15,000-panel power plant with an installed capacity of 5,000 kilowatts.

In the city, the parking lot of the Municipal Theater, a bus terminal, a market and the mayor’s office itself stand out, covered with panels. There are also 74 bus stops with a few panels, but many were damaged when parts were stolen, Amorim told IPS in an interview in his office.

In total, the city had a solar power generation capacity of 6700 KW at the end of 2020, equivalent to the consumption of 9000 local households. It also promotes energy efficiency in the areas under municipal management.

“Eighty percent of the city is now lit up by LED bulbs, which are more efficient. The goal is to reach 100 percent in 2023,” said the municipal secretary.

The mayor’s office, during the administration of Teresa Surita (2013-2020), was a pioneer in the installation of solar power plants and also in comprehensive care for children from pregnancy to adolescence, for youngsters in the public educational system.

The city’s Welcoming Family program provides coordinated health, education, social assistance and communication services for mothers and children, from pregnancy through the first six years of the children’s lives. The day-care centers are called Mother Houses.

In recent years, students in the local municipal elementary schools have performed above the national average, coming in fifth place in student testing among Brazil’s 27 state capitals.

This was an especially outstanding achievement because the influx of Venezuelan migrants more than doubled the number of students in Boa Vista schools in the last decade.

Despite this, the quality of teaching was not affected, according to the indicators of the Education Ministry’s Basic Education Evaluation System.

The results of the local early childhood policy have been recognized by several national and international specialized entities, including the United Nations Children’s Fund, which awarded it the Unicef Seal of Approval in 2016 and 2020.

More visible than the solar panels are the 30 playgrounds of varying sizes scattered around the city, in some cases featuring large playground equipment and structures in the shape of national wild animals, such as crocodiles and jaguars. They are called “selvinhas” (little jungles).

The use of solar power has spread to other sectors of life in Roraima, a state with only 650,000 inhabitants, despite its large area of 223,644 square kilometers, twice the size of Honduras, for example.

In May, there were 705 solar plants in homes, businesses and private companies, in addition to public buildings, in the state, with a total installed capacity of 15,955 KW (just under one percent of the region’s total).

In Roraima there are solar plants in the courthouses in four cities, in an aim to cut energy costs through a program called Lumen.

The Federal University of Roraima (UFRR) is also building a 908-panel plant, to be inaugurated by March 2023, with the capacity to generate 20 percent of the electricity consumed on its three campuses.

“The main objective is to save energy costs, and the goal is to expand to cover 100 percent of consumption. But it will also be useful for electrical engineering studies,” Emanuel Tishcer, UFRR’s head of infrastructure, told IPS.

The training of specialists in renewable sources, research into more efficient and cheaper panels, the comparison of technologies and innovations all become more accessible with the availability of an operating solar power plant, which serves the university’s electrical energy laboratory.

Edinho Macuxi, general coordinator of the Indigenous Council of Roraima (CIR), the largest organization of native peoples in the state, said “the great objective (of solar energy) is to prove that Roraima and Brazil do not need new hydroelectric plants.”

The Bem Querer (Portuguese for “good will”) plant on the Branco River, Roraima’s main river, “will have direct impacts on nine indigenous territories” and will also affect other nearby indigenous areas if it is built, as the central government intends, he told IPS.

That is why the CIR is involved in three projects – two solar energy and a wind energy study – in territories assigned to different indigenous ethnic groups, he said.

The government’s hydroelectric plans, which currently prioritize Bem Querer, but include other uses of local rivers, have sparked a renewed debate on energy alternatives in Roraima, which has an installed electricity capacity of only 300 megawatts, since it has almost no industry.

From 2001 to 2019, Roraima relied on electricity from neighboring Venezuela, generated by the Guri hydroelectric plant in eastern Venezuela, the deterioration of which caused a growing shortage over the last decade, until the supply completely ran out in 2019, two years before the end of the contract.

Diesel thermoelectric plants had to be reactivated and new plants had to be built, including one using natural gas transported by truck from the Amazon jungle municipality of Silves, some 1,000 kilometers away, in order to guarantee a steady supply of electricity that the people of Roraima did not have until then.

It is costly electricity, but its subsidized price is one of the lowest in Brazil. The subsidy drives up the cost of electric power in the rest of the country. That is why there is nationwide pressure for the construction of a 715-kilometer transmission line between Manaus, capital of the state of Amazonas, also in the north, and Boa Vista.

With this transmission line, Roraima will cease to be the only Brazilian state outside the national grid, and local advocates believe it will be indispensable for a secure supply of electricity, a long-desired goal.

To discuss this and other alternatives, a group of stakeholders created the Roraima Alternative Energies Forum in September 2019, to promote dialogue between all sectors, in search of “the strategic construction of solutions to make the use of renewable energies viable in the state.”

“Our focus is energy security. The Forum is focused on photovoltaic sources and distributed generation. But it seeks a variety of renewable energies, including biomass,” said Conceição Escobar, one of the Forum’s coordinators and president of the Brazilian Association of Electrical Engineers in Roraima.

“There is an opportunity for everyone to be involved in the discussion. The construction of transmission lines and hydroelectric plants takes a long time, we have perhaps ten years to develop alternatives,” she told IPS.

“I am against Bem Querer, but the government of Roraima supports it. The Forum listens to all parties, it does not want to impose solutions. We want to study the feasibility of combined sources, with solar, biomass and wind, and encourage the use of garbage,” said biologist Rosilene Maia, who also forms part of the three-member board of the Forum.

© Inter Press Service (2022) — All Rights ReservedOriginal source: Inter Press Service

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Needed Global Financial Reforms Foregone yet Again — Global Issues

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

Global financial crisis

The 2007-2009 global financial crisis (GFC) began in the US housing market. Collateralized debt obligations (CDOs), credit default swaps (CDSs) and other related contracts, many quite ‘novel’, spread the risk worldwide, far beyond US mortgage markets.

Transnational financial ‘neural-like’ networks ensured vulnerability quickly spread to other economies and sectors, despite government efforts to limit contagion. As these were only partially successful, deleveraging – reducing the debt level by hastily selling assets – became inevitable, with all its dire consequences.

The GFC also exposed massive resource misallocations due to financial liberalization with minimal regulation of supposedly efficient markets. With growing arbitrage of interest rate differentials, achieving balanced equilibria has become impossible except in mainstream economic models.

Financialization has meant much greater debt and risk exposure as well as vulnerability for many households and firms, e.g., due to ‘term’ (duration) and currency ‘mismatches’, resulting in greater overall financial system fragility.

This has worsened global imbalances, reflected in larger trade and current account deficits and surpluses. In unfavourable circumstances, exposure of firms and households to risky assets and liabilities has been enough to trigger defaults.

Bold fiscal efforts succeeded in inducing modest economic recoveries before they were nipped in the bud soon after the ‘green shoots of recovery’ appeared. Instead, the US Fed initiated ‘unconventional’ monetary policies, offering easy credit with ‘quantitative easing’.

Currencies in flux

The seemingly coordinated rise of various, apparently unconnected asset prices cannot be explained by conventional economics. Thus, speculation in commodity, currency and stock markets has been grudgingly acknowledged as worsening the GFC.

The exchange rates of many currencies have also come under greater pressure as residents borrowed in low interest rate currencies such as the Japanese yen. In turn, they have typically bought financial assets promising higher returns.

Thus, higher interest rates attract capital inflows, raising most domestic asset prices. Exchange rate movements are supposed to reflect comparative national economic strengths, but rarely do so. But conventional monetary responses worsen, rather than mitigate, contractionary tendencies.

Globalization of trade and finance has generated contradictory pressures. All countries are under pressure to generate trade or current account surpluses. But this, of course, is impossible as not all economies can run surpluses simultaneously.

Many try to do so by devaluing their currencies or cutting costs by other means. But only the US can use its ‘exorbitant privilege’ to maintain both budgetary and current account deficits by simply issuing Treasury bonds.

Currency markets can also undermine such efforts by enabling arbitrage on interest rate differentials. International imbalances have worsened, as seen in larger current account deficits and surpluses.

Contrary to mainstream economics, currency speculation does not equilibrate national, let alone international markets. It does not reflect economic fundamentals, ensuring exchange rate volatility, to damaging effect.

Commodity speculation

Thanks to currency mismatches, many companies and households face greater risk. Exchange rate fluctuations, in turn, exacerbate price volatility and its harmful consequences, which vary with circumstances.

Changes in ‘fundamentals’ no longer explain commodity price volatility. Meanwhile, more commodity speculation has resulted in greater price volatility and higher prices for food, oil, metals and other raw materials.

These prices have been driven by much more speculation, often involving indexed funds trading in real assets. The resulting price volatility especially affects everyone, as food consumers, and developing countries’ agricultural producers.

Sharp increases in commodity prices since mid-2007 were largely driven by speculation, mainly involving indexed funds. With the Great Recession following the GFC, most commodity producers in developing countries faced difficulties.

Since then, nearly all commodity prices fell from the mid-2010s as the world economic slowdown showed no sign of abating until economic sanctions in 2022 pushed up food, energy, fertilizer and other prices once again.

Besides hurting export revenues, lower commodity prices and even greater volatility have accelerated depreciation of earlier investments in equipment and infrastructure following the commodity price spikes.

Integrated solutions needed

The uneven financial system meltdown following the GFC raised expectations that ‘finance-as-usual’ would never return. But lasting solutions to threats, such as currency and commodity speculation, require international cooperation and regulation.

Meanwhile, goods and financial markets have become more interconnected. Thus, a truly multilateral and cooperative approach has to be found in the complex interconnections involving international trade and finance.

In this asymmetrically interdependent world, policy reforms are urgently needed. All countries need to be able to pursue appropriate countercyclical macroeconomic policies. Also, small economies should be able to achieve exchange rate stability at affordably low cost.

Although prompt actions were undertaken in response to the GFC, the world economy experienced a protracted slowdown, the ‘Great Recession’. Myopic policymakers in most developed economies focus on perceived national risks, ignoring international ones, especially those affecting developing countries.

Contrary to widespread popular presumption, the Bretton Woods multilateral monetary and financial arrangements did not include a regulatory regime. Nor has such a regime emerged since, even after US President Nixon unilaterally ended the Bretton Woods system in 1971.

With the gagged voice of developing countries in international financial institutions and markets, the United Nations must lead, as it did in the mid-1940s.

It is the only world institution which could legitimately develop a better alternative. Thankfully, the UN Charter assigns it responsibility to lead efforts to do so.

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Africas Processing Industry Holds Promise for Broader Economic Growth — Global Issues

Abou Fumarou Mahamadou poses amid millet stalks dried in the sun. She belongs to a co-op of 32 women farmers in the commune of Tibiri in southwest Niger. Credit: Stephan Gladieu / World Bank
  • Opinion by Chakib Jenane (washington dc)
  • Inter Press Service

Yet, the rise of an increasingly affluent urban middle class across Africa is threatening to shift diets away from traditional staples like millet in favor of higher-value and more convenient processed foods often sourced from outside the continent.

However, Africa’s homegrown processing industry can increasingly deliver more sophisticated products, turning unprocessed millet into nutritious ready-to-eat meals such as rice-like products, porridges, and more. This is a win-win for farmers and consumers alike.

Africa’s emerging agrifood processing industry clearly offers a major opportunity to capitalize on the growing demand for processed foods which, to date, has been met in large part by imported products.

Growing this sector can provide valuable opportunities for African livelihoods and economies across the region, all the while reducing the continent’s food import bill, which stands at roughly USD 35 billion a year.

The recently released Regional Strategic Analysis and Knowledge Support System (ReSAKSS) Annual Trends and Outlook Report (ATOR) shows that Africa’s agrifood processing sector is the essential link in connecting the continent’s smallholder farmers to growing urban markets with changing preferences.

Still, the sector as it exists today is just the tip of the iceberg, and data from across the continent highlights its enormous untapped potential, particularly in terms of the long-cultivated staples.

For instance, the rise of the millet processing sector in Senegal has reversed declining consumption trends due to growing urban populations and their needs for quicker and more convenient staples.

The share of millet has risen to close to 30 percent of the cereal consumption of high-income earners in Senegal, roughly the same as imported rice.

The introduction of more sophisticated millet products has also opened up new market opportunities for smallholder producers, which, alongside rising demand, is boosting the prices they can expect to receive in markets.

This means not only greater economic growth for national economies, but greater spending power and more resilient livelihoods for Africa’s small-scale producers, too.

Another interesting case study is the tomato, the fourth most economically valuable food crop produced in low- and middle-income countries. Fresh tomato is often more accessible to small-scale processors than larger plants, leaving significant potential to develop greater value products.

As a result, the rise of Africa’s processing sector is introducing new opportunities for tomato production by helping to add value and reduce post-harvest losses, stabilizing supplies for consumers throughout the year, while ensuring steady revenue streams for producers.

Meanwhile, some African countries are already seizing on the vast opportunities offered by their processing sectors to deliver a double win for economies and livelihoods.

Roughly 68 percent of Tanzania’s manufacturing exports, for instance, are agri-processed and resource-intensive goods, such as bottled juices, cooking oils, and packaged flours. A large majority of these goods are also being shipped to other African countries, demonstrating how greater agri-food processing capacity on the continent can meet African demand with African processed products.

This not only replaces demand for intercontinental imports, but equally ensures the benefits of processing for producers and consumers remain in Africa to deliver economic growth for future generations.

The growth of Africa’s agrifood processing sector clearly offers sustainable income-generating opportunities for the continent’s smallholder farmers through higher-value products that appeal to changing urban markets.

It also offers many prospects for jobs creation for the continent’s growing youth population – the fastest growing in the world.

With African food tastes and dietary preferences evolving, so too must its agrifood industry if it wishes to stay competitive, successful, and sustainable, delivering growth and improved livelihoods for millions.

Unlocking the potential of the continent’s processing sector, in particular, offers a clear path forward to achieving this goal.

Chakib Jenane joined the World Bank Group in 2014 and is currently Practice Manager for the Agriculture and Food Practice covering West and Central Africa.

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