Eight International Development Priorities for the new UK Prime Minister — Global Issues

  • Opinion by Melissa Leach (brighton, uk)
  • Inter Press Service

Whilst urgent domestic policy is required, these national issues are symptomatic of a broader set of global crises, including the ongoing impacts of the Covid-19 pandemic and the war in Ukraine.

Therefore, the Prime Minister also has an urgent foreign policy agenda to address, within which international development has a vital role to play.

The FCDO’s long-awaited International Development Strategy was published in May, but the vision it set out broadly failed to meet the scale of the global challenges we face. These are the eight international development priorities we believe the new PM should be addressing:

1. Climate justice

Climate and environmental change are creating pervasive threats to the UK and all other countries, highlighted most recently by the UK’s record-breaking summer temperatures and the devastating floods in Pakistan. Ahead of the COP27 climate summit, where the UK hands over the COP Presidency to Egypt, the new PM should take the opportunity to show global leadership in the pursuit of climate and environmental justice.

This means prioritising support for those most disadvantaged and already experiencing the worst impacts and ensuring that their voices and knowledge count in decision making. It also means investing in effective mitigation and adaptation initiatives, which are purposefully connected to interconnected issues, such as access to water, food, healthcare, gender justice, education and land rights.

2. Health security

The UK’s expertise and investment in tackling epidemics has been world leading. The production and roll-out of technologies such as Covid-19 vaccines, and in health systems strengthening and universal health coverage (UHC), are valued by low-income countries and have been a critical part of the UK’s soft power.

As the Covid-19 pandemic proved how globally interconnected our health is, investment in future pandemic preparedness, that embraces institutional, knowledge and system questions (not just pharmaceutical interventions), and is guided by inclusive, localised and context-specific evidence, is critical for the UK, as well as globally.

3. Multilateral Cooperation and the SDGs

Universal challenges such as climate change and global health require co-ordinated international responses, which link local and national action with global level commitments and solidarities. Multilateral agencies such as the UN are best placed to lead these. Whilst there is room for reform, it’s short-sighted for the FCDO to have cut support for multilateral agencies without a clear assessment of the impact this will have.

IDS research shows that today’s crises – conflict in Ukraine and Ethiopia, climate change induced floods and heatwaves, pandemics, and rising inequalities – are all interconnected and require a rounded response, not a strategy that handpicks a few priorities in isolation. The UN’s Sustainable Development Goals (SDGs) provide the framework for addressing development challenges as a whole and should be at the core of the Government’s strategic planning.

4. Food equity

Whilst exacerbated by the conflict in Ukraine, rising global food insecurity is the result of a vastly unequal global food system, where power is held by vested interests and low crop yields are aggravated by drought or flood, conflict, and economic instability.

In the short-term, the UK needs to help stabilise global food supplies, but longer-term reforms are also needed, such as supporting more regenerative methods of food production and agro-ecological approaches that enhance agricultural biodiversity and resilience.

By investing in ‘bottom up’ research working with smallholder farmers and pastoralists in low-income countries, the FCDO can help identify what works best where, preventing the ‘one-size-fits-all’ technological solutions that often cause more problems than they solve.

5. China

Development has a great role to play in support of UK diplomacy. For the UK-China relationship where official channels of communications and diplomacy may deteriorate, strong relationships fostered by development and knowledge exchanges provide alternative channels for constructive dialogue.

There is particular potential around issues such as the vast Belt and Road Initiative, climate change, global health and the SDGs. Liz Truss is reported to be planning to take a more robust stance on the UK’s approach to China but we believe constructive dialogue with China around approaches to development co-operation should continue.

6. Transparency

In July, the department was downgraded in the Aid Transparency Index and the FCDO has been repeatedly criticised for its poor record on transparency since the DFID/FCO merger, including from the cross-party International Development Committee, Bond, the UK network of International Development NGOs and from the National Audit Office.

At a minimum the FCDO must be transparent about forward-looking budgeting and provide public data on planned ODA spending. To ‘stand up for freedom around the world’ as set out in the International Development Strategy, the FCDO must lead by example and have a clear framework for transparency, monitoring and evaluation, by which it can be held accountable.

7. Restoring 0.7

Reducing the UK’s ODA budget from 0.7% of GNI to 0.5% in 2021 resulted in a real terms reduction of £4.6bn. This dramatically reduced the UK’s ability to deliver the high-quality aid and interdisciplinary research essential to improving the lives of people around the world. It also dismantled international science partnerships and damaged the UK’s global reputation.

Other countries such as the US, Japan, Canada and Australia increased international aid budgets in light of Covid-19 and other global crises, yet the UK Government downgraded its contribution.

Re-instating the Conservative manifesto commitment to 0.7, along with appointing an International Development Minister at FCDO would demonstrate to the rest of the world the UK’s commitment to international development, and tackling the challenges that affect us all – poverty and inequalities, disease and climate change.

8. Investing in international research

There is a vital role that the knowledge generated from UK-led international development research can play, with a threefold benefit to the UK as well as to global communities – contributing to the Government’s goal for the UK to be a science superpower, benefiting the UK directly through lessons learnt and new discoveries that can apply to challenges at home, and finding effective and value for money support for lower and middle-income countries.

Whilst we welcomed the commitment to evidence and expertise in the International Development Strategy, this should go further. It is important to ensure that social science contributions are valued as much as technical science ‘solutions’. It is important to champion the importance of working with and from the perspectives of people living in poverty and marginalisation, and not overlooking the capabilities of low-income countries in generating knowledge for vital transformations.

The commitments to UK science must be complemented by investing in the equitable, interdisciplinary and international research partnerships needed to find contextual solutions that will benefit marginalised people around the world, and in many cases, here in the UK as well.

In conclusion, through UK-led international development, the new Prime Minister has the opportunity to help tackle the significant crises we all face. As new disasters around the world unfold with increasing frequency and severity, we are constantly reminded that the cost of delay or denial is far too high.

Melissa Leach is Director, Institute of Development Studies, UK.

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The Right Policies Can Protect the Workers of Asia and the Pacific — Global Issues

  • Opinion by Armida Salsiah Alisjahbana (bangkok, thailand)
  • Inter Press Service

While 243 million new people were pushed into poverty during the COVID-19 pandemic, half of all people in our region already had been surviving without cash, a third without necessary medicine or treatment and a quarter had gone without enough food to eat. This can lower productivity, which has fallen below the global average, but also tax revenues and future economic output.

With two-thirds of all workers in the region being employed informally, often with low wages, in hazardous working conditions and without a contract, half of our workforce are at the brink of poverty. People in our region are also at a higher risk of being pushed into poverty by health spending than anywhere else in the world, causing inequalities to further widen. With more than half of all people being excluded from social protection, pandemics, disasters economic downturns, or normal life events, such as falling ill, becoming pregnant or getting old often have detrimental impacts on households’ wellbeing and life prospects.

The reality is harsh: our workers are generally ill-equipped to unlock new opportunities, fulfill life aspirations for themselves and their families but also to face ongoing challenges emanating from megatrends of climate change, ageing societies and digitalization.

Climate-induced natural disasters cause businesses to relocate and jobs to disappear, disproportionately affecting rural communities. Digital technologies are bringing disruptive change to the world of work and the digital gap is intensifying inequalities in opportunities, income and wealth. Population ageing means that the number of older people will double by 2050, making policies to support active and healthy ageing ever more urgent.

None of these vulnerabilities are inevitable. With the right policies, our region’s workforce can become more productive, healthier and protected.

First, active labour market policies, through life-long learning and skill development, can support a green and just transition into decent employment and improve access to basic opportunities and adequate standards of living. Harnessing synergies between active labor market policies and social protection can help workers upgrade their skills and transition into decent employment while smoothing consumption and avoiding negative coping strategies during spells of unemployment or other shocks.

Second, extending social health protection to all can significantly improve workers’ health, income security and productivity. COVID-19 demonstrated the weakness of a status quo in which 60 per cent of our workers finance their own health care and receive no sickness benefits. A focus on primary health care as well as curative health protection is needed, also to support healthy and active ageing. People who are chronically ill or live with a disability must be included in health care strategies. Given the large informal economy across the region, extending social health protection is the key policy instrument for achieving universal health coverage in our region.

Third, building on the ESCAP Social Protection Simulator, a basic package of universal child, old age and disability social protection schemes, set at global average benefit levels, would slash poverty in our region by half. Our analysis also shows that social protection helps increase access to opportunities particularly for furthest behind groups. This income security would improve the workforce’s resilience. Extending social protection to all means increasing public spending by between 2 and 6 per cent of GDP, an investment well-worth its cost. The Action Plan to Strengthen Regional Cooperation on Social Protection in Asia and the Pacific can guide action towards broadening social protection coverage.

With this information at hand, there is a long overdue need for action. The policy recommendations set out in the Social Outlook are a priority for most countries in the region. These require bold but necessary reforms. For most countries these reforms are affordable but may require a reprioritization of existing expenditures and tax, supported by tax reform. Decent employment for all and an expansion of social protection and health care should form the foundations of a strong social contract between the State and its citizens. One where mutual roles and responsibilities are clear and where our workforce is given the security to fulfil their potential and be the force for achieving the 2030 Agenda on Sustainable Development in Asia and the Pacific.

Armida Salsiah Alisjahbana is an Under-Secretary-General of the United Nations and Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP)

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UN Labour Report Highlights Employment Challenges for Youth — Global Issues

An International Labour Organisation report found that the COVID-19 pandemic impacted youth employment more than any other group. Credit: Dominic Chavez/World Bank
  • by Juliet Morrison (united nations)
  • Inter Press Service

A recent International Labour Organisation (ILO) report published on August 11, 2022, confirmed this vulnerability. The Global Employment Trends for Youth 2022 found that the pandemic set employment rates for youth back more than for any other age group.

Certain regions struggle with youth employment more than others. High-income countries would see their youth employment rates back to pre-pandemic levels by the end of the year, the report revealed. In Africa, however, the decline would only serve to worsen a state of affairs that was already growing perilous.

Africa hosts the world’s youngest population. Seventy percent of Sub-Saharan Africans are under 30. But, only 3 million jobs are available for the 10-12 million young people on the market each year.

One in five African youths were not in employment, education, or training in 2020, according to the ILO.

Young people across Africa face both unemployment and underemployment. Both situations have potentially serious long-term consequences for young people.

In South Africa, the unemployment problem is acute. The current rate for youth is 63.9 percent.

Dr Lauren Graham, Director of the Centre for Social Development in Africa at the University of Johannesburg, explains one of the underlying challenges is the nation’s high bar labor market.

“Much of the challenge sits on the demand side – high levels of unemployment are related to low job growth over many years – insufficient to absorb the large numbers of work-seekers. Young work-seekers often enter the labor market at the back of the labor market queue with limited experience and qualifications.”

Elsewhere in Sub-Saharan Africa, young people are more likely to be underemployed. Unable to find formal jobs, many end up in the informal economy, engaging in precarious work to earn a wage.

Limited economic opportunity for youth can pose significant problems for societies. It can often lead to an increase in alcohol and drug abuse and crime. Academics have pointed out that swathes of unemployed youth have also led to political turmoil, the most notable example being the Arab Spring.

In its report, the ILO issued several recommendations for governments around the world to boost youth employment. Prime among them were investing in the blue (activity involving the marine environment) and green (activity aimed at reducing environmental risk) economies.

Such investments could generate up to 8.4 million jobs globally for young people, per the ILO. This has been a particularly loud cry for Africa, given the breadth of its natural assets.

The ILO also suggested governments support youth-led entrepreneurship—a position that Carleton University professor Dr Tony Bailetti echoes.

“The immediate task that lies ahead for all of us is in formulating and executing actionable policies at the country and regional levels. The most effective policies will be those that leverage cross-border, digital and inclusive entrepreneurship to transform the future of young people.”

Many NGOs in Africa are also supporting the entrepreneurship idea. One, Junior Achievement (JA) Africa, has found considerable success with its entrepreneurship education program.

The organization partners with ministries of education in 13 different countries to bring programs around work readiness and skills development to students. So far, they have reached more than 300,000.

Senanu Adiku, JA Africa’s communications, and marketing officer told IPS that the company believes it can make an impact in tackling Africa’s youth employment problem.

“JA Africa sees entrepreneurship education as the solution to this gap, not only to create entrepreneurs but to skill young people for the few jobs that are actually available because they need upskilling,” he said.

This education also has ripple effects, he added. Empowering one student to start a business will lead other students to be employed by the business. More students will also be inspired to create their own enterprises.

Over 72 percent of students who participated in JA Africa’s program went on to create businesses, according to a company survey. Most of these initiatives also gave back to their community.

“These usually create businesses that are community-oriented, looking at addressing some of the serious issues in their communities, like plastics, plastic pollution. They look at youth empowerment themselves. They try to bring solutions to some of the things that they see around them. So really, we are creating solution providers, who are also going to go on and help others.”

The organization has goals to expand to 20 countries, reaching a million young people across the continent.

Closing its report, the ILO noted that the COVID-19 recovery presents opportunities for governments to pursue policies that boost youth employment.

“What young people need most is well-functioning labor markets with decent job opportunities for those already participating in the labor market, along with quality education and training opportunities for those yet to enter it,” Martha Newton, ILO Deputy-Director General for Policy, stated in the report’s press release.

On South Africa’s unemployment problem, Graham stressed that no matter what policies get selected to tackle the crisis, policymakers should consider poverty-related barriers that may hinder young people’s ability to access employment.

“Young people in also struggle to transition into the labor market at the same time as they face multiple forms of deprivation including food and income insecurity, care responsibilities, and in some cases strained mental health.”

The suggested policies were all necessary and welcome, Graham told IPS, but they will need to be evaluated to see how young people fare in their wake to measure their true impact.

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Yes, Africas Informal Sector Has Problems, But the Answer Isnt to Marginalise It — Global Issues

African leaders must recognise the enormous potentials of the continent’s informal workers and begin to integrate them better into their city-building visions and strategies. Credit: Suleiman Mbatiah/IPS
  • Opinion
  • Inter Press Service

But these aspirations tend to marginalise and antagonise the informal sector. The sector encompasses the suite of economic activities by workers and economic units that are – in law or in practice – not covered (or insufficiently covered) by formal arrangements.

We are a team of international scholars researching sustainable cities in Africa. In our latest paper, we explore the dual role played by the informal sector in Africa’s urban economy. On the one hand, it plays a positive role. It provides employment, securing household income and savings, provides household basic needs and boosts civic engagement.

But the sector also plays a negative role. It contributes to social and gender inequality, insecurity, congestion and pollution.

Overall, we found that the informal sector has a lot to offer the future of African cities. We therefore recommend that public policy focuses more on regularising the sector, instead of displacing it. This is often done to make way for elitist big capital projects.

Also, we warn that ignoring or marginalising the millions of people whose livelihoods depend on the sector could spell a social bloodbath on the continent.

The ‘smart cities’ craze in Africa

There has been a resurgent interest in building so-called “smart”, “modern”, “globally competitive” cities in Africa. Some are seeking to build entirely new cities. But, for the most part, most governments want to put cities on the “map” through large-scale redevelopment or by “modernising” existing city districts.

African cities have long been blamed for not serving as engines of growth and structural transformation as their counterparts did during Europe’s Industrial Revolution. This makes it refreshing that leaders on the continent are seeking to turn things around.

The problem, however, is that these visions of city modernisation tend to heavily marginalise and antagonise the informal sector in their design and execution. Some even have a strong focus on displacing informal workers and activities – particularly hawkers and hawking, slum dwellers and slum settlements – from the central business districts of the cities.

For instance, early this year, the authorities in Nigeria sent a combined team of police, military and other law enforcement officials to destroy a Port Harcourt informal settlement that housed some 15,000 families.

Their counterparts in Ghana are currently conducting similar exercises.

These decisions are often justified on the grounds that informal workers and their activities generate “congestion”, “crime”, “filth/grime”, and “disorderliness”.

In other words, they impede sustainable city-making, and hence, must be eradicated.

But is this premise backed by the evidence? This is the question our team recently interrogated.

We conclude that the informal sector is rather the goose laying Africa’s golden eggs.

Unpacking the data

We argue in our paper that African leaders must re-think the informal sector as a potential site for innovation and solutions.

Consider its employment creation potential for instance. In 2018, a study by the International Labour Organization (ILO) found that the informal sector employs some 89.2% of the total labour force in sub-Saharan Africa if agriculture is included.

Even without agriculture, the share of informal employment is still significant: 76.8%. In central Africa, without agriculture, the sector’s share of employment hovered at 78.8% and 91% with agriculture. In east Africa, the contributions stood at 76.6% without agriculture and 91.6% with agriculture. The figures for southern and western Africa hovered around 36.1% and 87% without agriculture and 40.2% and 92.4% when agriculture is included.

The informal sector also makes other important contributions to Africa’s economy. In 2000, the gross value additions of Benin, Burkina Faso, Senegal and Togo’s informal sector (including agriculture) hovered around 71.6%, 55.8%, 51.5%, and 72.5% of the countries’ total GDPs.

The sector’s contribution to housing too is substantial. The most notable form of informal housing, popularly called “slums”, provide accommodation to millions of urban dwellers on the continent.

The United Nations’ data suggest that Nigeria’s share of urban population that are accommodated in slums as of 2015 stood at 50.2%. That of Ethiopia was 73.9%; Uganda’s 53.6%; Tanzania’s 50.7%. Ghana and Rwanda’s hovered around 37.9% and 53.2%, respectively.

Clearly, the informal sector oils Africa’s urban economy in many important ways. This makes it highly unlikely that any visions of transforming lives on the continent can succeed without taking the sector into adequate account.

More importantly, the millions of working-class people whose lives depend on the sector have shown consistently that they won’t take their continuing marginalisation lying down. They frequently resist eviction orders.

Perhaps, their most profound moment of resistance was witnessed at the height of the COVID pandemic.

Many African governments imposed lockdowns to limit community transmission of the virus. However, after subjecting informal workers to extensive brutalities, they still refused to comply, forcing many governments to suspend the lockdowns. The pandemic has shown that the continuing systematic marginalisation of informal workers in city-making heralds more trouble for the future.

Informality at the heart of city-making

The issue is not that city authorities must allow informal workers and activities to go unchecked. They clearly have a responsibility to deal with the problems in the sector to ensure the security and health of the public. This includes the informal workers themselves.

The problem with current approaches is that they largely dispossess the workers and displace them to make way for big capital projects which serve the needs of a privileged few.

African leaders must recognise the enormous potentials of the continent’s informal workers and begin to integrate them better into their city-building visions and strategies.

The recent integration of informal waste collectors/recyclers – popularly called Zabbaleen – in waste management in Cairo, Egypt’s capital, offers great lessons.

The Zabbaleen had long been neglected for so-called “formal” private companies which, however, continued to prove inefficient and structurally unable to navigate the narrow streets of several neighbourhoods of Cairo.

When Cairo authorities finally recognised that the Zabbaleen are better suited for the job, they changed course and brought them onboard. The emerging evidence suggests that the change is paying some fruitful dividends in improved sanitation.

Cairo’s progressive example paints a powerful image of how the capabilities of informal workers could be seriously incorporated and integrated into building African cities. Hopefully, more of such interventions will be replicated in other sectors of the continent’s urban economy.

Dr Henry Mensah and Professor Imoro Braimah of KNUST’s Centre for Settlements Studies, and Department of Planning contributed to the original article.

Gideon Abagna Azunre, PhD student, Concordia University; Festival Godwin Boateng, Postdoctoral Research Fellow, Centre for Sustainable Urban Development, The Earth Institute, Columbia University; Owusu Amponsah, Senior Lecturer, Department of planning, Kwame Nkrumah University of Science and Technology (KNUST), and Stephen Appiah Takyi, Senior Lecturer, Department of Planning, Kwame Nkrumah University of Science and Technology (KNUST)

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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From Tragedy to Farce — Global Issues

  • Opinion by Jomo Kwame Sundaram, Anis Chowdhury (sydney and kuala lumpur)
  • Inter Press Service

When growth is weak and many are jobless, prices rarely rise, keeping inflation low. The converse is true when growth is strong. This inverse relationship between economic activity and inflation broke down with supply shocks, particularly oil and other primary commodity price surges during 1972-75.

Non-oil primary commodity prices on The Economist index more than doubled between mid-1972 and mid-1974. Prices of some commodities, e.g., sugar and urea fertilizer, rose more than five-fold!

As costlier energy pushed up production expenses, businesses raised prices and cut jobs. With higher food, fuel and other prices, rising costs, coupled with income losses, reduced aggregate demand, further slowing the economy.

Fed chokes economy to cut inflation
Years before becoming US Fed chair in 2006, a Ben Bernanke co-authored paper noted, “Looking more specifically at individual recessionary episodes associated with oil price shocks, we find that … oil shocks, per se, were not a major cause of these downturns”.

Following Milton Friedman and Anna Schwartz, other economists also found “in the postwar era there have been a series of episodes in which the Federal Reserve has in effect deliberately attempted to induce a recession to decrease inflation”.

The US Fed began raising interest rates from 1977, inducing an American economic recession in 1980. The economy briefly turned around when the Fed stopped raising interest rates. But this nascent recovery soon ended as Fed chair Paul Volcker raised interest rates even more sharply.

The federal funds target rate rose from around 10% to nearly 20%, triggering an “extraordinarily painful recession”. Unemployment rose to nearly 11% nationwide – the highest in the post-war era – and as high as 17% in some states, e.g., Michigan, leaving long-term scars.

Interest rate hikes reduced needed investments. Outside the US economy, these sharp and rapid interest rate hikes triggered debt crises in Poland, Latin America, sub-Saharan Africa, South Korea and elsewhere.

Earlier open economic policies meant “the increase in world interest rates, the increased debt burden of developing countries, the growth slowdown in the industrial world…contributed to the developing countries’ stagnation”.

Countries seeking International Monetary Fund (IMF) financial support had to agree to severe fiscal austerity, liberalization, deregulation and privatization policy conditionalities. With per capita incomes falling and poverty rising, Latin America and Africa “lost two decades”.

Stagflation reprise
The IMF chief economist recently reiterated, “Inflation is a major concern”. The Bank of International Settlements has warned, “We may be reaching a tipping point, beyond which an inflationary psychology spreads and becomes entrenched.”

Central bankers’ anti-inflationary efforts mainly involve raising interest rates. This approach slows economies, accelerating recessions, often triggering debt crises without quelling rising prices due to supply shocks.

Economic recoveries from the 2008-09 global financial crisis (GFC) remained tepid for a decade after initially bold fiscal responses were quickly abandoned. Meanwhile, ‘quantitative easing’, other unconventional monetary policies and the Covid-19 pandemic raised debt to unprecedented levels.

GFC trade protectionist responses, US and Japanese ‘reshoring’ of foreign investment in China, the pandemic, the Ukraine war and sanctions against Russia and its allies have reversed earlier trade liberalization.

Higher interest rates in the rich North have triggered capital flight, causing developing country currencies to depreciate, especially against the US dollar. The slowing world economy has reduced demand for many developing country exports, while most migrant worker remittances decline.

Interest rate hikes have worsened debt crises, particularly in the global South. The poorest countries have seen an $11bn surge in debt payments due while grappling with looming food crises. Thus, developing country vulnerabilities have been worsened by international trends over which they have little control.

Lessons not learned
Supply-side cost-push inflation is very different from the demand-pull variety. Without evidence, inflation ‘hawks’ insist that not acting urgently will be costlier later.

This may happen if surging demand is the main cause of inflation, especially if higher costs are easily passed on to consumers. However, episodes of dangerously accelerating inflation are very rare.

Acting too quickly against supply-shock inflation can be unwise. The 1970s’ energy crises sparked greater interest in energy efficiency. But higher interest rates in the 1980s deterred needed investments, even to reverse declining or stagnating productivity growth.

Raising interest rates also accelerated recessions. But similar commodity price rises before the 1970s’ and imminent stagflation episodes – involving energy and food respectively – obscure major differences.

For instance, ‘wage indexing’ – linking wage increases to price rises – enhanced the 1970s’ inflation spiral. But labour market deregulation since the 1980s has largely ended such indexation.

The IMF acknowledges globalization, ‘offshoring’ and labour-saving technical change have weakened unionization and workers’ bargaining power. With both elements of the 1970s’ wage-price spirals now insignificant, inflation is more likely to decline once supply bottlenecks ease.

But the wage-price spiral has also been replaced by a profit-price swirl. Reforms since the 1980s have also enhanced large corporations’ market power. Greater corporate discretion and reduced employees’ strength have thus increased profit shares, even during the pandemic.

In November 2021, Bloomberg observed the “fattest profits since 1950 debunks wage-inflation story of CEOs”. Meanwhile, the Guardian found “Companies’ profit growth has far outpaced workers’ wages”.

Corporations are taking advantage of the situation, passing on costs to customers. The net profits of the top 100 US corporations were “up by a median of 49%, and in one case by as much as 111,000%”!

Meanwhile, many more consumers struggle to meet their basic needs. Interest rate hikes have also hurt wage-earners, as falling labour shares of national income have been exacerbated by real wage stagnation, even contraction.

Hence, policymakers should ease supply bottlenecks and address imbalances to accelerate progress, not raise interest rates causing the converse. Thus, they should rein in corporate power, improve competition and protect the vulnerable.

Allowing international price rises to pass through, while protecting the vulnerable, can accelerate the transition to more sustainable consumption and production, including cleaner renewable energy.

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April Fool’s Inflation Medicine Threatens Progress — Global Issues

  • Opinion by Jomo Kwame Sundaram, Anis Chowdhury (sydney and kuala lumpur)
  • Inter Press Service

Over 80 central banks have already raised interest rates so far this year. Except for the Bank of Japan governor, major central bankers have reacted to recent inflation by raising interest rates. Hence, stagflation is increasingly likely as rising interest rates slow the economy, but do not quell supply-side cost-push inflation.

IMF U-turn unexplained

The IMF chief economist recently advised, “Inflation at current levels represents a clear risk for current and future macroeconomic stability and bringing it back to central bank targets should be the top priority for policymakers”.

While acknowledging the short-term costs of raising interest rates, he has never bothered to explain why inflation targets should be considered sacrosanct regardless of circumstances. Simply asserting inflation will be more costly if not checked now makes for poor evidence-based policy making.

After all, only a month earlier, on 7 June, the IMF advised, “Countries should allow international prices to pass through to domestic prices while protecting households that are most in need”.

The Fund recognized the major sources of current inflation are supply disruptions – first due to pandemic lockdowns disrupting supply chains, and then, delivery blockages of food, fuel and fertilizer due to war and sanctions.

US Fed infallible?

Without explaining why, US Federal Reserve Bank Chair Jerome Powell insists on emulating his hero, Paul Volcker, Fed chair during 1979-87. Volcker famously almost doubled the federal funds target rate to nearly 20%.

Thus, Volcker caused the longest US recession since the 1930s’ Great Depression, raising unemployment to nearly 11%, while “the effects of unemployment, on health and earnings of sacked workers, persisted for years”.

Asked at a US Senate hearing if the Fed was prepared to do whatever it takes to control inflation – even if it harms growth – Powell replied, “the answer to your question is yes”.

But major central banks have ‘over-reacted’ time and again, with disastrous consequences. Milton Friedman famously argued the US Fed exacerbated the 1930s’ Great Depression. Instead of providing liquidity to businesses struggling with short-term cash-flow problems, it squeezed credit, crushing economic activity.

Similarly, later Fed chair Ben Bernanke and his co-authors showed overzealous monetary tightening was mainly responsible for the 1970s’ stagflation. With prices still rising despite higher interest rates, stagflation now looms large.

North Atlantic trio

Most central bankers have long been obsessed with fighting inflation, insisting on bringing it down to 2%, despite harming economic progress. This formulaic response is prescribed, even when inflation is not mainly due to surging demand.

Powell recently observed, “supply is a big part of the story”, acknowledging the Ukraine war and China’s pandemic restrictions have pushed prices up.

While admitting higher interest rates may increase unemployment, Powell insists meeting the 2% target is “unconditional”. He asserted, “we have the tools and the resolve to get it down to 2%”, insisting “we’re going to do that”.

While recognizing “very big supply shocks” as the primary cause of inflation, Bank of England (BOE) Governor Andrew Bailey also vows to meet the 2% inflation target, allowing “no ifs or buts”.

While European Central Bank President Christine Lagarde does not expect to return “to that environment of low inflation”, admitting “inflation in the euro area today is being driven by a complex mix of factors”, she insists on raising “interest rates for as long as it takes to bring inflation back to our target”.

April Fools?

Much of the problem is due to the 2% inflation targeting dogma. As the then Governor of the Reserve Bank of New Zealand – the first central bank to adopt a 2% inflation target – later admitted, “The figure was plucked out of the air”.

Thus, a “chance remark” by the NZ Finance Minister – during “a television interview on April 1, 1988 that he was thinking of genuine price stability, ‘around 0, or 0 to 1 percent’” – has become monetary policy worldwide!

Powell also acknowledged, “Since the pandemic, we’ve been living in a world where the economy has been driven by very different forces”. He confessed, “I think we understand better how little we understand about inflation.”

Meanwhile, Powell acknowledges how changed globalization, demographics, productivity and technical progress no longer check price increases – as during the ‘Great Moderation’.

Bailey’s resolve to get inflation to 2% is even more shocking as he admits the BOE cannot stop inflation hitting 10%, as “there isn’t a lot we can do”.

Although it has no theoretical, analytical or empirical basis, many central bankers treat inflation targeting as universal best practice – in all circumstances! Thus, despite acknowledging supply-side disruptions and changed conditions, they still insist on the 2% inflation target!

Interest rate, blunt tool

Central bankers’ inflation targeting dogma will cause much damage. Even when inflation is rising, raising interest rates may not be the right policy tool for several reasons.

First, the interest rate only addresses the symptoms, not the causes of inflation – which can be many. Second, raising interest rates too often and too much can kill productive and efficient businesses along with those less so.

Third, by slowing the economy, higher interest rates discourage investment in new technology, skill-upgrading, plant and equipment, adversely affecting the economy’s long-term potential.

Fourth, higher interest rates will raise debt burdens for governments, businesses and households. Borrowings accelerated after the 2008-09 global financial crisis, and even more during the pandemic.

Monetary tightening also constrains fiscal policy. A slower economy implies less tax revenue and more social provisioning spending. Higher interest rates also raise living costs as households’ debt-servicing costs rise, especially for mortgages. Living costs also rise as businesses pass on higher interest rates to consumers.

Policy innovation

The recent inflationary surge is broadly acknowledged as due to supply shortages, mainly due to the new Cold War, pandemic, Ukraine war and sanctions.

Increasing interest rates may slow price increases by reducing demand, but does not address supply constraints, the main cause of inflation now. Anti-inflationary policy in the current circumstances should therefore change from suppressing domestic demand, with higher interest rates, to enhancing supplies.

Raising interest rates increases credit costs for all. Instead, financial constraints on desired industries to be promoted (e.g., renewable energy) should be eased. Meanwhile, credit for undesirable, inefficient, speculative and unproductive activities (e.g., real estate and share purchases) should be tightened.

This requires macroeconomic policies to support economic diversification, by promoting industrial investments and technological innovation. Each goal needs customized policy tools.

Instead of reacting to inflation by raising the interest rate – a blunt one-size-fits-all instrument indeed – policymakers should consider various causes of inflation and how they interact.

Each source of inflation needs appropriate policy tools, not one blunt instrument for all. But central bankers still consider raising interest rates the main, if not only policy against inflation – a universal hammer for every cause of inflation, all seen as nails.

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Technology Helps Traffickers Hunt Their Victims, Enslave Them, Sell Their Organs — Global Issues

Venezuelan migrant Manuela Molina (not her real name) was promised a decent job in Trinidad, but minutes after her arrival she was forced into a van and taken to a secret location. Credit: IOM Port of Spain
  • by Baher Kamal (madrid)
  • Inter Press Service

Yes, technology now dominates most of human activities and, surprisingly enough, it is now presented as the perfect life-saving solution for the smallest and poorest households worldwide. Simply, it has replaced the precious human knowledge, which has been acquired over thousands of years.

And technology is now utilised by the world’s biggest ‘warlords’ to bomb unarmed civilians with drones, also carrying nuclear heads.

Meanwhile, internet and digital platforms are used by criminal gangs to recruit, exploit and control the victims of their human trafficking lucrative business. Among other crimes, victims of trafficking are also targeted for “organ harvesting.”

No wonder then that the 2022 World Day Against Trafficking in Persons (30 July) has focused on the use and abuse of technology as a tool that can both enable and impede human trafficking.

What’s behind human trafficking?

“Conflicts, forced displacement, climate change, inequality and poverty, have left tens of millions of people around the world destitute, isolated and vulnerable,” said UN Secretary-General António Guterres ahead of World Day.

The COVID-19 pandemic has separated children and young people in general from their friends and peers, pushing them into spending more time alone and online, said Guterres.

“Human traffickers are taking advantage of these vulnerabilities, using sophisticated technology to identify, track, control and exploit victims.”

Slave markets, also in refugee camps

Obviously, given the clandestinity of these inhuman operations–and the negligent complicity of official authorities–, the number of victims is practically impossible to calculate.

The International Organization for Migration (IOM) estimates that the number of “detected” trafficked persons amounts to over 150,000. Other estimates talk about as many as one million.

More than 60% of known human trafficking victims over the last 15 years have been women and girls, most of them trafficked for sexual exploitation.

Meanwhile, the criminal gangs’ operations have been extended everywhere, even in refugee camps.

In the article: Slave Markets Open 24/7: Refugee Babies, Boys, Girls, Women, Men…, IPS reported that, in addition to slave selling and buying deals in public squares, as reported time ago in ‘liberated’ Libya, a widespread exploitation of men, women, and children has been carried out for years at refugee camps worldwide.

One of them is a Malawi refugee camp, where such inhumane practice has been reported by the UN Office of Drugs and Crime (UNODC) and the Malawian Police Service.

“I even witnessed a kind of Sunday market, where people come to buy children who were then exploited in situations of forced labour and prostitution,” said UNODC’s Maxwell Matewere.

The camp is also being used as a hub for the processing of victims of human trafficking. Traffickers recruit victims in their home country under false pretences, arrange for them to cross the border into Malawi and enter the camp.

Many other refugee camps, as it is the case of the Za’atari camp in Jordan, where tens of thousands of Syrian refugees are located once they had to flee the 11-years long devastating war on their country, are also suspected of being stage for human trafficking. And the list goes on.

The Dark Web

Often using the so-called “dark web”, online platforms allow criminals to recruit people with false promises, informs the UN, adding that technology anonymously allows dangerous and degrading content that fuels human trafficking, including the sexual exploitation of children.

On this, the UNODC explains that as the world continues to transform digitally, internet technologies are increasingly being used for the facilitation of trafficking in persons.

With the rise of new technologies, some traffickers have adapted their modus operandi for cyberspace by integrating technology and taking advantage of digital platforms to advertise, recruit and exploit victims.

Recruited through social media

Everyday, digital platforms are used by traffickers to advertise deceptive job offers and to market exploitative services to potential paying customers, explains UNODC.

“Victims are recruited through social media, with traffickers taking advantage of publicly available personal information and the anonymity of online spaces to contact victims.”

Patterns of exploitation have been transformed by digital platforms, as webcams and live streams have created new forms of exploitation and reduced the need for transportation and transfer of victims.

Trafficking in armed conflicts

A group of UN-appointed independent human rights experts, known as Special Rapporteurs, has recently underscored that the international community must “strengthen prevention and accountability for trafficking in persons in conflict situations”.

Women and girls, particularly those who are displaced, are disproportionately affected by trafficking in persons for the purpose of sexual exploitation, forced and child marriage, forced labour and domestic servitude, they warned.

“These risks of exploitation, occurring in times of crisis, are not new. They are linked to and stem from existing, structural inequalities, often based on intersectional identities, gender-based discrimination and violence, racism, poverty and weaknesses in child protection systems,” the experts said.

Structural inequalities

According to the independent human rights experts, refugees, migrants, internally displaced and Stateless persons are particularly at risk of attacks and abductions that lead to trafficking.

And the dangers are increased by continued restrictions on protection and assistance, limited resettlement and family reunification, inadequate labour safeguards and restrictive migration policies.

“Such structural inequalities are exacerbated in the periods before, during and after conflicts, and disproportionately affect children”, they added.

Targeting schools

Despite links between armed group activities and human trafficking – particularly targeting children – accountability “remains low and prevention is weak,” the UN Special Rapporteurs underlined.

Child trafficking – with schools often targeted – is linked to the grave violations against children in situations of armed conflict, including recruitment and use, abductions and sexual violence, they said.

“Sexual violence against children persists, and often leads to trafficking for purposes of sexual exploitation, sexual slavery, forced pregnancy and forced marriage, as well as forced labour and domestic servitude”.

Organ harvesting

The independent human rights experts also highlighted that in conflict situations, organ harvesting trafficking is another concern, along with law enforcement’s inability to regulate and control armed groups and other traffickers’ finances – domestically and across borders.

“We have seen what can be achieved through coordinated action and a political will to prevent trafficking in conflict situations,” said the group of Special Rapporteurs, advocating for international protection, family reunification and expanded resettlement and planned relocation opportunities.

Special Rapporteurs and independent experts are appointed by the Geneva-based UN Human Rights Council to examine and report back on a specific human rights theme or a country’s situation. The positions are honorary, and the experts are not paid for their work.

Protection services ‘severely lacking’

The UN refugee agency, UNHCR, on 29 July warned that protection services for refugees and migrants making perilous journeys from the Sahel and Horn of Africa towards North Africa and Europe, including survivors of human trafficking, are “severely lacking”.

“Some victims are left to die in the desert, others suffer repeated sexual and gender-based violence, kidnappings for ransom, torture, and many forms of physical and psychological abuse.”

All the above is just another tragic evidence of how big is the ‘dark web’ of the world’s so-called decision-makers.

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

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Reject CPTPP, Stay out of New Cold War — Global Issues

  • Opinion by Jomo Kwame Sundaram, Anis Chowdhury (kuala lumpur and sydney)
  • Inter Press Service

The ITC report found projected TPP growth gains to be paltry over the long-term. Its finding was in line with the earlier 2014 findings of the Economic Research Service of the US Department of Agriculture.

Meanwhile, many US manufacturing jobs have been lost to corporations automating and relocating abroad. Worse, Trump’s rhetoric has greatly transformed US public discourse. Many Americans now blame globalization, immigration, foreigners and, increasingly, China for the problems they face.

Trump U-turn
The TPP was believed to be dead and buried after Trump withdrew the US from it immediately after his inauguration in January 2017. After all, most aspirants in the November 2016 election – including Hillary Clinton, once a TPP cheerleader – had opposed it in the presidential campaign.

Trump National Economic Council director Gary Cohn has accused presidential confidantes of ‘dirty tactics’ to escalate the trade war with China.

Cohn acknowledged “he didn’t quit over the tariffs, per se, but rather because of the totally shady, ratfucking way Commerce Secretary Wilbur Ross and economic adviser Peter Navarro went about convincing the president to implement them.”

Cohn, previously Goldman Sachs president, insisted it “was a terrible idea that would only hurt the US, and not extract the concessions from Beijing Trump wanted, or do anything to shrink the trade deficit.”

This was later rebranded the Comprehensive and Progressive TPP (CPTPP), with no new features to justify its ‘progressive’ pretensions. Following its earlier support for the TPP, the PIIE has been the principal cheerleader for the CPTPP in the West.

Although US President Joe Biden was loyal as Vice-President, he did not make any effort to revive Obama’s TPP initiative during his campaign, or since entering the White House. Apparently, re-joining the TPP is politically impossible in the US today.

Panning the Trump approach, Biden’s US Trade Representative has stressed, “Addressing the China challenge will require a comprehensive strategy and more systematic approach than the piecemeal approach of the recent past.” Now, instead of backing off from Trump’s belligerent approach, the US will go all out.

Favouring foreign investors
Rather than promote trade, the TPP prioritized transnational corporation (TNC)-friendly rules. The CPTPP did not even eliminate the most onerous TPP provisions demanded by US TNCs, but only suspended some, e.g., on intellectual property (IP). Suspension was favoured to induce a future US regime to re-join.

Onerous TPP provisions – e.g., for investor-state dispute settlement (ISDS) – remain. This extrajudicial system supersedes national laws and judiciaries, with secret rulings by private tribunals not bound by precedent or subject to appeal.

Lawyers have been advising TNCs on how to sue host governments for resorting to extraordinary COVID-19 measures since 2020. Most countries can rarely afford to incur huge legal costs fighting powerful TNCs, even if they win.

The Trump administration cited vulnerability to onerous ISDS provisions to justify US withdrawal from the TPP. Now, citizens of smaller, weaker and poorer nations are being told to believe ISDS does not pose any real threat to them!

After ratifying the CPTPP, TNCs can sue governments for supposed loss of profits due to policy changes – even if in the national or public interest, e.g., to contain COVID-19 contagion, or ensure food security.

Thus, supposed CPTPP gains mainly come from expected additional foreign direct investment (FDI) due to enhanced investor benefits – not more trade. This implies more host economy concessions, and hence, less net benefits for them.

Who benefits?
Those who have seriously studied the CPTPP agree it offers even fewer benefits than the TPP. After all, the main TPP attraction was access to the US market, now no longer a CPTPP member. Thus, the CPTPP will mainly benefit Japanese TNC exports subject to lower tariffs.

Unsurprisingly, South Korea and Taiwan want to join so that their TNCs do not lose out. China too wants to join, but presumably also to ensure the CPTPP is not used against it. However, the closest US allies are expected to block China.

The Soviet Union sought to join NATO in the 1950s before convening the Warsaw Pact to counter it. Russian President Vladimir Putin also tried to join NATO years after Vaclav Havel ended the Warsaw Pact and Boris Yeltsin dissolved the Soviet Union in 1991.

Unlike Northeast Asian countries, Southeast Asian economies seek FDI. But when foreign investors are favoured, domestic investors may relocate abroad, e.g., to ‘tax havens’ within the CPTPP, often benefiting from special incentives for foreign investment, even if ‘roundtrip’.

Stay non-aligned
The ‘pivot to Asia’ has become more explicitly military. As the new Cold War unfolds, foreign policy considerations – rather than serious expectations of significant economic benefits from the CPTPP – have become more important.

Trade protectionism in the North has grown since the 2008 global financial crisis. More recently, the pandemic has disrupted supply chains. With the new Cold War, the US, Japan and others are demanding their TNCs ‘onshore’, i.e., stop investing in and outsourcing to China, also hurting transborder suppliers.

Hence, net gains from joining the CPTPP – or from ratifying it for those who signed up in 2018 – are dubious for most, especially with its paltry benefits. After all, trade liberalization only benefits everyone when ‘winners’ compensate ‘losers’ – which neither the CPTPP nor its requirements do.

With big powers clashing in the new Cold War, developing countries should remain ‘non-aligned’ – albeit as appropriate for these new times. They should not take sides between the dominant West and its adversaries – led by China, the major trading partner, by far, for more and more countries.

IPS UN Bureau


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Migrant Workers from Mexico, Caught Up in Trafficking, Forced Labor and Exploitation — Global Issues

Mexican workers harvest produce on a farm in the western U.S. state of California. The number of temporary agricultural workers from Mexico has increased in recent years in the United States and with it, human rights violations. CREDIT: Courtesy of Linnaea Mallette
  • by Emilio Godoy (mexico city)
  • Inter Press Service

Hired by recruiter Vazquez Citrus & Hauling (VCH), Reyes and five other temporary workers reached the United States between May and September 2017, months before starting work for Four Star Greenhouse in the Midwest state of Michigan.

In 2018, they worked more than 60 hours per week, received bad checks, and never obtained a copy of their contract, even though U.S. laws require that they be given one.

When they complained to Four Star and to their recruiter about the exploitative conditions, the latter turned them over to immigration authorities for deportation in July of that year because their visas had expired, which they had not been informed of by their agent.

In December 2017, the U.S. Department of Labor (DOL) authorized the arrival of 145 workers to the Four Star facilities in Carleton, Michigan. They were to earn 12.75 dollars per hour for 36 hours a week between January and July 2018.

Reyes’ case is set forth in complaint 2:20-CV-11692, seen by IPS, filed in the Southern Division of the U.S. District Court for the Eastern District of Michigan by six Mexican workers against the company and its manager, whom they accuse of wage gouging, forced labor and workplace reprisals.

This story of exploitation has an aggravating factor that shows the shortcomings of the U.S. government’s H-2A temporary agricultural workers program, or H-2A visa program.

The United States created H-2 visas for unskilled temporary foreign workers in 1943 and in the 1980s established H-2A categories for rural workers and 2B for other labor, such as landscaping, construction, and hotel staff.

These visas allow Mexicans, mainly from rural areas, to migrate seasonally to the U.S. to work legally on farms included on a list, with the intermediation of recruiting companies.

In 2016, the US Department of Transportation fined VCH, based in the state of Florida, for 22,000 dollars for a bus accident in which six H-2A workers were killed while returning from Monroe, Michigan to Mexico.

Two years later, the DOL’s Wage and Hour Division banned VCH and its owner for three years due to program violations in the state of North Carolina, such as failure to reimburse travel expenses and payroll and workday records. However, both continued to operate in the sector.

The workers’ odyssey begins in Mexico, where they are recruited by individual contractors -workers or former workers of a U.S. employer, colleagues, relatives or friends in their home communities – or by private U.S. agencies.

Structural problem

Reyes’ case illustrates the problems of labor exploitation, forced labor and the risk of human trafficking to which participants in the H-2A program are exposed, without intervention by Mexican or U.S. authorities to prevent human rights violations.

Advocates for the rights of the seasonal workers and experts pointed to worsening working conditions, warned of the threat of human trafficking and forced labor, and complained about the prevailing impunity.

According to Lilián López, representative in Mexico of the U.S.-based Polaris Project, the design and operation of the program result in a high risk of human trafficking and forced labor, due to factors such as the lack of supervision and interference by recruiters.

“Economic vulnerability puts migrants at risk, because many workers go into debt to get to the United States, and that gives the agencies a lot of power. They can set any kind of requirement for people to get the jobs. Sometimes recruiters make offers that look more attractive than they really are. That is fraud,” she told IPS in Mexico City.

The number of calls to the National Human Trafficking Hotline operated by Polaris in the US reflects the apparent increase in abuses. Between 2015 and 2017, 800 people on temporary visas, 500 of which were H-2A, called the hotline, compared to 2,890 people between 2018 and 2020 – a 360 percent increase.

Evy Peña, spokesperson for Mexico’s Migrant Rights Center, said temporary labor systems are designed to benefit employers, who have all the control, along with the recruiters.

“From the moment the workers are recruited, there is no transparency. There is a lack of oversight by the DOL, there are parts of recruitment that should be overseen by the Mexican government. There are things that the Mexican government should work out at home,” she told IPS from the northern city of Monterrey.

She said the situation has worsened because of the pandemic.

The United States and Mexico have idealized the H-2A program because it solves the lack of employment in rural areas, foments remittances that provide financial oxygen to those areas, and meets a vital demand in food-producing centers that supply U.S. households.

But the humanitarian costs are high, as the cases reviewed attest. Mexico’s Ministry of Labor and Social Welfare has 369 labor placement agencies registered in 29 of Mexico’s 33 states. For overseas labor recruitment, seven operate – including four in Mexico City -, a small number compared to the thousands of visas issued in 2021.

For its part, the DOL reports 241 licensed recruiters in the US working for a handful of companies in that country.

The ones authorized in Mexico do not appear on the US list and vice versa, in another example of the scarce exchange of information between the two partners.

The number of H-2A visas for Mexican workers is on the rise, with the U.S. government authorizing 201,123 in 2020, a high number driven by the pandemic. That number grew 22 percent in 2021, to a total of 246,738.

In the first four months of the year, U.S. consulates in Mexico issued 121,516 such visas, 18 percent more than in the same period of 2021, when they granted 102,952.

In 2021, the states with the highest demand for Mexican labor were Florida, Georgia, California, Washington and North Carolina, in activities such as agriculture, the operation of farm equipment and construction.

The United States and Mexico agreed to issue another 150,000 visas for temporary workers in an attempt to mitigate forced migration from the south, which will also include Central American seasonal workers.

Details of the expansion of the program will be announced by Presidents Joe Biden and Andres Manuel Lopez Obrador at a meeting to be held on Jul. 12 at the White House, with migration as one of the main topics on the agenda.

Indifference

Lidia Muñoz, a doctoral student at the University of Oregon in the United States who has studied labor recruitment, stresses that there are no policies on the subject in Mexico, even though the government is aware of the problem.

“There are regulations for recruitment agencies that are not followed to the letter,” she told IPS from Portland, the largest city in the northwestern state of Oregon. “Most recruiters are not registered. The intermediaries are the ones who earn the most. There is no proper oversight.”

Article 28 of Mexico’s Federal Labor Law of 1970 regulates the provision of services by workers hired within Mexico for work abroad, but in practice it is not enforced.

This regulation requires the registration of contracts with the labor authorities and the posting of a bond to guarantee compliance, and makes the foreign contractor responsible for transportation to and from the country, food and immigration expenses, as well as full payment of wages, compensation for occupational hazards and access to adequate housing.

In addition, Mexican workers must be entitled to social security for foreigners in the country where they offer their services.

While the Mexican government could resort to this article to protect the rights of migrants, it has refused to apply it.

Between 2009 and 2019, the Ministry of Labor conducted 91 inspections of labor placement agencies in nine states and imposed 12 fines for about 153,000 dollars, but did not fine any recruiters of seasonal workers. Furthermore, the records of the Federal Court of Conciliation and Arbitration do not contain labor lawsuits for breach of that regulation.

Mexico is a party to the International Labor Organization (ILO) Fee-Charging Employment Agencies Convention, which it apparently violates in the case of temporary workers.

In addition, the Ministry of Foreign Affairs (SRE) does not know how many H-2A workers it has assisted through consular services. Likewise, it does not know how many complainants it has advised.

The Mexican consulate in Denver, Colorado received three labor complaints, dated Jul. 25, Aug. 12 and Oct. 28, 2021, which it referred to “specialized allies in the matter, who provided the relevant advice to the interested parties,” according to an SRE response to a request for information from IPS.

The consulate in Washington received “anonymous verbal reports” on labor issues, which it passed on to civil society organizations so that “the relevant support could be provided.”

Consular teams were active in some parts of the US in 2021. For example, Mexican officials visited eight corporations between May and September 2021 in Denver, Colorado.

In Philadelphia, Pennsylvania they visited 12 companies between April and August, 2021. In Milwaukee, Wisconsin they visited 26 companies between June 2021 and April of this year, and in Washington, DC six workplaces were visited between August and October 2021. However, the results of these visits are unknown.

Mexico, meanwhile, is in non-compliance with the ILO’s “General principles and operational guidelines for fair recruitment” of 2016.

These guidelines stipulate that hiring must be done in accordance with human rights, through voluntary agreements, free from deception or coercion, and with specific, verifiable and understandable conditions of employment, with no attached charges or job immobility.

Ariel Ruiz, an analyst with the U.S.-based Migration Policy Institute, is concerned about the expansion of the H-2A visa program without improvements in rights.

“There are labour rights violations before the workers arrive in the US, in recruitment there are often illegal payments, and we keep hearing reports of employers intimidating workers,” he told IPS from Washington.

“There are also problems in access to health services and legal representation” in case of abuse, added the analyst from the non-governmental institute.

Judicialization

In the last decade, at least 12 lawsuits have been filed in US courts by program workers against employers.

Muñoz, the expert from Oregon, said the trials can help reform the system.

“There have been cases that have resulted in visas for trafficking victims. But it is difficult to see changes in the United States. They may be possible in oversight. Legal changes have arisen because of wage theft from workers,” she said.

López, of Polaris, said the lawsuits were a good thing, but clarified that they did not solve the systemic problems. “What is needed is a root-and-branch reform of the system,” she said.

The United States has made trade union freedom in Mexico a priority. Peña asked that it also address the H-2A visa situation.

“If they’re serious about improving labor rights, they can’t ignore the responsibility they have for migrant workers. It’s like creating a double standard,” she said.

With regard to the expansion of the temporary visa program to Central Americans, the experts consulted expressed concern that it would lead to an increase in abuses.

This article was produced with support from the organizations Dignificando el Trabajo and the Avina Foundation’s Arropa Initiative in Mexico.

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

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Recovering Edible Food from Waste Provides Environmental and Social Solutions in Argentina — Global Issues

Tomasa Chávez, bundled up against the cold of the southern hemisphere winter, works at the Central Market in Buenos Aires, where she was hired in 2021 to separate edible waste that can be recovered. Until then, she went there daily on her own for 30 years to look for food and other recyclable materials among the waste that has now been given new value. CREDIT: Daniel Gutman/IPS
  • by Daniel Gutman (buenos aires)
  • Inter Press Service

“Before, I used to come almost every day and collect whatever was edible and whatever could be sold in my neighborhood. Food, cardboard, wood… Now I still come to separate edible food, but I work from 7:00 to 15:00 and I get paid some money,” the short, good-natured woman told IPS.

The Central Market of the Argentine capital is a universe that seems vast and unfathomable to those who venture into it for the first time.

Covering 550 hectares in the municipality of La Matanza, on the outskirts of Buenos Aires, it is full of life; to describe it merely as a central market that supplies fruits and vegetables to a metropolis of 15 million inhabitants would be an oversimplification.

In the market there are large companies and small businesses, streets, avenues, warehouses, buildings and even areas taken over by homeless people and a rehabilitation center for people with substance abuse problems. In some places people are crowded among crates of fruit and the noise is overwhelming, but there are also large empty areas where everything is quiet.

Nearly 1,000 trucks enter the Central Market every day to pick up fresh food that is sold in the stores of the city and Greater Buenos Aires. Every month, 106,000 tons of fruits and vegetables are sold, according to official data.

There is also a retail market with food of all kinds, attended by thousands of people from all over the city, in search of better prices than in their neighborhoods, in a context of inflation that does not stop growing – it already exceeds 60 percent annually – and which is destroying the buying power of the middle class and the poor.

As a reflection of the social situation in Argentina, where even before the COVID-19 pandemic the poverty rate exceeded 40 percent, a common image of the Market has been that of hundreds of people like Chávez rummaging through the waste, looking for something to eat or to sell.

But since August 2021, much of that energy has been poured into the Waste Reduction and Recovery Program, which is based on two main ideas: to use food fit for consumption for social assistance and the rest for the production of compost or organic fertilizer to promote agroecology.

“There was a social and environmental problem that needed to be addressed. Today we have fewer losses, we provide social assistance and create jobs,” Marisol Troya, quality and transparency manager at the Central Market, told IPS.

Coping with the crisis

The 12 gigantic bays where fruits and vegetables are sold wholesale are the heart of the Central Market, which employs 800 people and where a total of 10,000 people work every day.

At 2:00 a.m. the activity begins every day in the market with frenetic movement of crates containing local products from all over Argentina and neighboring countries, which are a festival of colors. Each bay has 55 stalls.

“The search for food among the Market’s waste was spurred by the economic crisis and the pandemic,” said Marcelo Pascal, a consultant to the management. “We realized very quickly that there was a lot of merchandise in good condition that was discarded for commercial reasons but could be recuperated.

“There were even small stands that used vegetables found in the garbage. A lot of edible products were recovered, but the process was disorderly, so an effort was made to organize it,” he told IPS.

From August 2021 to June 2022, 1,891 tons of food were recovered for social aid, while 3,276 tons have been used to make compost, according to official figures from the Central Market, which is run by a board of directors made up of representatives of the central, provincial and city governments.

“We have reduced by 48 percent the amount of garbage that the Market was sending to landfills for final disposal, which was 50 tons a day,” agronomist Fabián Rainoldi, head of the Waste Reduction Program, told IPS.

Orderly recovery of edible products

Justo Gregorio Ayala is working in an esplanade next to one of the wholesale bays. In front of him he has a crate of bruised tomatoes, impossible to sell at a store, but many of which are ripe and edible. His task is to separate the edible ones from the waste.

“I live here in the Market, in the Hogar de Cristo San Cayetano, and six months ago I got this job,” Ayala said, referring to the rehab center for addicts that opened in 2020 inside the Market itself.

“There were always a lot of products to recover in the Market, but now we do it better,” added Ayala, who is one of the workers hired for the Program.

He clarified, however, that the scenario varies depending on the temperature. “In summertime, because of the heat, the fruits and vegetables last much less time and the stallholders throw away more products. Now in winter we don’t find so much.”

The workers work in eight of the market’s 12 bays. There are a total of 24 workers, divided into groups of three, who separate the merchandise that the stallholders are asked to leave in the center of the bay.

The recovered goods are loaded onto trucks that are taken to a huge warehouse in the Community Action section of the Market, where they are prepared for use in social aid projects.

“We deliver food to 700 soup kitchens, according to a weekly schedule: about 130 per day,” said Martin Romero, head of the Community Action section, where 22 workers perform their duties, as the first vehicles begin to arrive to pick up their cargo.

“We also put together eight-kilo bags, with whatever we have available, which we deliver to 130 families,” he added to IPS.

What is not fit for human consumption ends up in the composting yard, a plot of land covering almost three hectares, where the process of decomposition of organic matter takes about four months.

“The organic waste is mixed with wood chips made from the crates, which absorb water and reduce the leachate that contaminates the soil. The organic compost is donated to agroecological gardens which use it for fertilization and the recovery of degraded soils,” explained Rainoldi.

The goal is a Central Market that makes use of everything and does not send waste to the dump. It’s a long road that has just begun.

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