The World Bank and coal aid

World Bank staff has spent the last several years drafting a new strategy that will provide high-level policy guidance for energy sector lending decisions over the next decade. One of the most important and controversial provisions in the draft strategy is a ban on lending for new coalfired power plants in specific categories of World Bank client countries. The ban covers all countries that qualify for loans from the International Bank for Reconstruction and Development (IBRD), including “blend” countries that also receive loans from the International Development Association (IDA). This includes middle-income countries, ranging from India, China, Brazil and South Africa to Vietnam and Pakistan. IBRD offers loans with better terms than commercial lenders, including longer payback and grace periods. The ban on new coal generation lending does not cover the poorest (IDA only) countries or efficiency improvements for existing coal plants in middle-income countries.

Middle-income countries argued that placing restrictions on projects for specific groups of countries is unprecedented, and that countries should be allowed to choose their own energy pathways. Developed countries argued that middle-income countries are easily able to attract private capital for new coal plants, and thus, World Bank lending provides no additional development benefit.
http://www.brookings.edu/~/media/Files/rc/papers/2011/1010_world_bank_coal_aid_purvis/Coal%20Aid%20Global%20Views.pdf 

How financial transparency by multinationals on a country by country basis can aid development

The international community has repeatedly stressed the need to mobilise domestic resources in developing countries, as the most sustainable way of financing development and ending aid dependency. Yet, many developing countries are affected by a number of challenges that limit their capacity to collect taxes. One such challenge is multinational companies’ lack of accountability regarding their operations and more specifically regarding the taxes they pay.

This report explains how the cross border nature of multinational companies’ operations combined with the absence of adequate transparency regulations have very damaging implications for a country’s ability to mobilise domestic resources. Although this is relevant for both developed and developing countries, the report focuses on the impacts for developing countries, which have weaker capacities to face this challenge.
http://www.eurodad.org/uploadedFiles/Whats_New/Reports/CBC%20report_hi.pdf?n=7530 

Development drivers in Africa: Role of innovation

This paper argues that innovation in development is an additional factor underpinning Africa's development and that it is important to see how pro-poor innovation can further contribute to resolving the remaining challenges. There are a number of policies that can be put in place to support innovation and employment creation. Supporting creation of jobs for young people needs to be looked at in the long term and in the short term. In the long term countries need to generate sufficient economic growth that creates jobs in large numbers to absorb the growing number of youth. This requires stable countries where the domestic and foreign private sector can invest.

In the short term innovative approaches can support immediate job creation. Activities such as partnering young people with skilled experts in large scale public works and infrastructure programs can speed up innovation and learning in the construction sector. Bringing in skilled and competent people to mentor and develop young people in the service sector can generate jobs and innovative approaches to tap into the tourism market. For example tourist guides who understand ecosystems and animal behavior from traditional practice can be paired up with youth who have been trained in biology and anthropology to bring in excitement and innovation in the tourism guide sector.

http://elibrary.acbfpact.org/collect/acbf/index/assoc/HASH01d3.dir/file%20094.pdf 

Libya: Protect Vulnerable Minorities & Assist Civilians Harmed

With the death of Muammar Gaddafi, a long-standing dictatorship has come to an end. The majority of Libyans are celebrating a new future; but certain groups – including suspected loyalist civilians, sub-Saharan Africans, and ethnic minorities – remain displaced and vulnerable to violent attacks. The National Transitional Council (NTC), the current de facto government of Libya, lacks command and control over all armed groups, including those responsible for revenge attacks. As such, the NTC cannot yet establish or maintain the rule of law. The plight of these vulnerable civilians foreshadows challenges to reconciliation, integration, and equal treatment of all in the new Libya. Further, civilians suffering losses during hostilities have not been properly recognized or assisted. http://www.refugeesinternational.org/sites/default/files/110811_Libya_Protect_Vulnerable.pdf 

Cultural Diplomacy Outlook Report 2011

The Outlook is a compilation of the research undertaken by the Institute for Cultural Diplomacy during the year 2011. The Outlook takes both a vertical approach by analysing cultural diplomacy involvement through different sectors, such as public, private, and civil society, and a horizontal approach of how that involvement is carried out in different geographical regions and within various cultural diplomacy themes, such as nation branding, inter-religious dialogue, sports and the arts.

Throughout the course of 2011, local developments, be they in markets, governments, civil society, or artistic contributions have had international implications as is evident in the continuing global economic downturn and the social protests, the unfolding of the Arab Spring, and Bollywood. This interconnectivity and the overall concept of globalisation is not new, but its implications are continually discussed in every major sector of society be it public, private, civil or academic.

It has become apparent that there is a global need to foster international relationships that are built on mutual understanding rather than military action and formal diplomatic engagement. That is not to say that these forms of hard power are disappearing, but soft power has reemerged onto the international stage and grown in relevance as an alternate, and often preferable, means of international interaction.

While soft power is becoming an increasingly popular buzzword, it is still a relatively new field of enquiry and as such, there is often a dearth of research to inform and develop the discourse on the subject. This is particularly true when it comes to the field of cultural diplomacy. The world of cultural diplomacy changes rapidly and as such, information and analysis of the subject must be continually updated.

Thus, The Institute for Cultural Diplomacy has established itself as a formal research institute and administering academic programs to move the research on cultural diplomacy forward. Every year, the ICD will publish an annual outlook which will be a compilation of all the research conducted by the Institute for that year.

http://www.culturaldiplomacy.org/culturaldiplomacynews/index.php?en_cd-outlook-2011_content 

Ready to be Africa's climate Bank?

In early 2011, AfDB indicated its intention to establish and manage an Africa Green Fund to support African states that individually lack the knowledge and technology to secure needed global climate funds. In the context of the expected widespread impacts of climate change on the continent, the Bank is positioning itself as a strategic partner that will help African states resolve the dilemmas posed by sustainable development and climate change adaptation.

This mapping represents largely a desk review of AfDB’s engagement, commitments and, when possible, implementation of work surrounding climate change and environmental sustainability. In all, the Bank’s track record of tackling climate change is minimal. While it has typically approved good and progressive policies, strategies, and frameworks that discuss most of the pertinent issues, actual implementation of policies has ranged from low to non-existent.

The Bank has made important commitments to tackle climate change, yet actual efforts have been plagued by a lack of buy-in from senior management and the board. However, the tide appears to be turning, as the Bank has begun to appreciate the opportunities that climate leadership could bring.

http://boell.org/downloads/AfDB_Mapping_Study_Boell_BIC_Final.pdf 

Bahrain: Report Confirms Punitive Campaign Against Protesters

(Manama) – The report of the Bahrain Independent Commission of Inquiry released on November 23, 2011, confirms the systematic and egregious rights violations by the Bahraini government in suppressing pro-democracy protests earlier this year, Human Rights Watch said today. The report concluded that a lack of accountability by Bahraini authorities led to a “culture of impunity” and systematic violations of international human rights law as well as Bahraini law.

The 489-page report describes systematic patterns and practices of abuse by Bahrain’s security, military, and judicial branches. These abuses included excessive use of force against protesters leading to dozens of deaths and hundreds of injuries, arbitrary arrests and detentions, psychological and physical abuse of detainees that in “many cases” amounted to torture, and a pattern of due process violations and unfair trials.

The report also documented the unfair and summary dismissals of thousands of professionals, workers, and students.
“The independent commission’s findings confirm what Human Rights Watch and others have documented since Bahraini authorities opened their punitive campaign of retribution against pro-democracy protesters in March,” said Joe Stork, deputy Middle East director at Human Rights Watch.
King Hamad bin Isa Al Khalifa established the commission by decree in June 2011.

The commission found that arbitrary arrests – in many cases pre-dawn raids conducted by armed and masked security and military forces – showed the “existence of an operational plan” to terrorize protesters and opposition members. It concluded that the arrests and detentions “could not have happened without the knowledge of higher echelons of the command structure” of the security forces, and that failure to investigate rights abuses could implicate not only low-level personnel but also higher level officials.
One of the most troubling findings related to the deliberate practice of abuse and ill-treatment of detainees designed either to extract confessions or to mete out punishment. This practice amounted to torture, which was not sufficiently investigated or prosecuted, the commission said.

The commission called for the government to investigate the complaints of torture and other abuses and for accountability for those who “committed unlawful or negligent acts” that have resulted in the “deaths, torture and mistreatment of civilians.” It also called for the review in ordinary courts of sentences handed down by the special military courts where “principles of a fair trial” were denied.

The commission also found evidence that demonstrators carried out attacks on expatriates, “especially South Asian workers,” during the protests in February and March, and that some Sunni Bahrainis were targeted because they had expressed loyalty to the ruling Al Khalifa family or because of their sectarian affiliation.
The investigation was led by M. Cherif Bassiouni, an Egyptian jurist who previously led investigations into alleged war crimes in Libya and the former Yugoslavia. The other members of the commission were: Sir Nigel Rodley, the former UN special rapporteur on torture; Philippe Kirsch, the first president of the International Criminal Court; Badria Al Awadhi, an expert in international and Sharia law; and Mahnoush H. Arsanjani, who served many years in the legal office of the United Nations.

Rogue aid? The determinants of China’s aid allocation

Foreign aid from China is often characterized as ‘rogue aid’ that is not guided by recipient need but by China’s national interests alone. However, no econometric study so far confronts this claim with data. The study finds that political considerations are an important determinant of China’s allocation of aid. However, in comparison to other donors, China does not pay substantially more attention to politics. In contrast to widespread perceptions, the study finds no evidence that China’s aid allocation is dominated by natural resource endowments. Moreover, China’s allocation of aid seems to be widely independent of democracy and governance in recipient countries. Overall, denominating aid from China as ‘rogue aid’ seems unjustified.

According to the Financial Times, China outperformed the World Bank as the world’s largest provider of overseas loans to developing countries through its China Development Bank and China Export-Import Bank amounting to at least US$110 billion in 2009 and 2010. Tanzania was the single most important recipient of Chinese economic aid between 1956 and 1987. 62.0% of China’s economic aid between 1956 and 1987 has been provided to Africa, highlighting China’s aspirations to become the leading power in the Third World. 22.7% of China’s economic aid in this period were provided to Asia, with the intention of creating “friendly relations with its closest neighbours”.
https://ncgg.princeton.edu/IPES/2011/papers/F1120_rm3.pdf 

Direct access to climate finance: experiences and lessons learned

This paper provides an overview of the concept of direct access to funding for climate change actions in developing countries. It focuses on the institutional arrangements that are necessary to facilitate and support direct access and is intended to inform the current and future discussions on direct access modalities, including within the design process for the Green Climate Fund (GCF).

The paper begins by looking at what the term ‘direct access’ implies, what it is seeking to achieve, and how it has been defined to-date. The experience with this financing modality in other global funds is then reviewed. Based on this, a number of lessons learned are highlighted and several possible future arrangements for directly accessing international climate change-related funding are outlined.
http://www.odi.org.uk/resources/docs/7479.pdf 

Tax havens: International tax avoidance and evasion

Multinational firms can artificially shift profits from high-tax to low-tax jurisdictions using a variety of techniques, such as shifting debt to high-tax jurisdictions. Individuals can evade taxes on passive income, such as interest, dividends, and capital gains, by not reporting income earned abroad. Most provisions to address profit shifting by multinational firms would involve changing the tax law: repealing or limiting deferral, limiting the ability of the foreign tax credit to offset income, addressing check-the-box, or even formula apportionment.

There are, however, many activities, particularly by corporations, that are often referred to as avoidance but could be classified as evasion. One example is transfer pricing, where firms charge low prices for sales to low-tax affiliates but pay high prices for purchases from them. If these prices, which are supposed to be at arms-length, are set at an artificial level, then this activity might be viewed by some as evasion, even if such pricing is not overturned in court because evidence to establish pricing is not available.
http://www.fas.org/sgp/crs/misc/R40623.pdf 

The Right To Environment

This study refers to the fundamental right of the human being to have a healthy, ecologically balanced environment as well as to the necessity of recognizing and guaranteeing this right. The authors analyze the major components of the human being environment protection, the right to water, the right to fresh air, the right to the environment of the human settlements, the relationship: health – environment. A special attention is given to the integration of the sustainable development in the EU policies.

http://www.cse.uaic.ro/WorkingPapers/articles/CESWP2011_III1_PAR.pdf 

Libya’s Internal Conflict Shifts to Mali

Mali, like its neighbor Niger, is facing the return of an estimated 200,000 of its citizens from Libya. Most are Malian workers and their families who have been forced to flee Libya by the virulently “anti-African” forces that have seized power in that country. Some, however, are long-term Tuareg members of the Libyan military who have suddenly lost their jobs but not their arms. Armed Tuareg began returning to northern Mali in large numbers in August and continue to arrive in their homeland in convoys from Libya. Unfortunately, Mali has nothing to offer these returnees; not aid, not employment, nor even a sense of national identity; in sum, nothing that might provide some counter-incentive to rebellion.

http://www.jamestown.org/single/?no_cache=1&tx_ttnews[tt_news]=38583&tx_ttnews[backPid]=515 

Does foreign environmental policy influence domestic innovation?

This paper examines the relative influence of domestic and foreign renewable energy policies on innovation activity in wind power using patent data from OECD countries from 1994 to 2005. The authors distinguish between the impact of demand-pull policies (e.g., guaranteed tariffs, investment and production tax credits), as reflected by wind power capacities installed annually, and technology-push policies (government support to R&D). They show that inventors respond to both domestic and foreign new capacities by increasing their innovation effort. However, the effect on innovation of the marginal wind turbine installed at home is 28 times stronger than that of the foreign marginal wind turbine. Unlike demand-pull policies, public R&D expenditures only affect domestic inventors. A simple calculation suggests that the marginal million dollars spent on R&D support generates 0.82 new inventions, whereas the same amount spent on the deployment of wind turbines induces, at best, 0.06 new inventions (0.03 locally and 0.03 abroad).

http://www.cccep.ac.uk/Publications/Working-papers/Papers/50-59/WP56_environmental-policy-wind-industry.pdf

Tanzania - Convincing health workers to work in rural areas

Tanzania has one of the lowest health worker ratios in the world. It is the rural areas that suffer the most. The geographical imbalance represents a serious problem for the delivery of crucial health services to a large share of the population. A new study shows that offering education after a certain period of service may be one of the most powerful instruments the authorities have available in recruiting health workers to the rural areas.

http://www.cmi.no/publications/file/4210-convincing-health-workers-to-work-in-rural-areas.pdf 

Transforming landscapes, transforming lives

A brand new book about sustainable land management, the development of water buffers and the business case underneath it. As part of the discussion on the green economy it shows that investments in natural resource management make sense business-wise. While the parameters for investments in land, water and vegetation cover may be different – and returns may not always be immediate – both the financial payback and the economic dividend of investments in integrated landscapes, when done properly, are rewarding. As investments in sustainable land and water buffers will transform lives and economies, the social impact will become important. A buffer gives a sense of security and the reassurance that one’s livelihood is secured – something sought-after in a world of growing stress and climate change risks.

http://www.hydrology.nl/images/docs/ihp/nl/2011.08_Transforming_Landscapes.pdf