Poverty crushing the People of Haiti

By Dawn House
November 28 2008

Poverty is so crushing in Haiti that a simple cut or broken bone can become so infected in slums plagued with filth and raw sewage that the only remedy is amputation.

Adding to the misery in the Western Hemisphere’s poorest nation are hurricanes — Fay, Gustav, Hanna and Ike this year left 790 people dead and hundreds more injured, and now facing life-threatening infections.

But amputation can be a death sentence in Haiti, which depends on manual labor for survival, said Salt Lake City physician Jeff Randle, who has treated Haitians for a decade. It’s not uncommon for impoverished families, sometimes believing the injured are under a voodoo curse, to abandon disabled adults and children in the streets.

Randle, who first witnessed such despair while on an LDS Church mission, founded Healing Hands for Haiti in 1998. The nonprofit charity, based in Salt Lake City, has become the only agency in Haiti to provide wheelchairs, prosthetic limbs and braces for people who have lost limbs or were born with a disability.

The group needs donations, medical supplies and health-care professionals willing to volunteer a week or two to help staff its clinic in the capital city of Port-au-Prince.

The first year, 14 volunteers headed by doctors and social workers from LDS Hospital in Salt Lake City paid their own way to Haiti, where they provided rehabilitative therapy for more than 300 patients in 10 days. Despite political unrest and corruption in the country, almost all signed up to go the second year.

In the ensuing years, Randle has been joined by medical teams from 16 states. Most, including Randle, pay their own way while donations help with travel costs for the younger professionals. Last year, 21 medical workers from Canada raised $39,000 to finance their trip and fund treatment and training projects. The volunteers filled 42 large hockey bags with equipment and supplies and used 112 donated teddy bears as padding.

Healing Hands for Haiti has grown to a paid staff of 40 at its 7-acre compound in the foothills of Port-au-Prince. The group supports a clinic, school and shop where Haitians are trained to make prosthetic limbs and provide therapy for disabled adults and children. The group also conducts classes for workers from orphanages in taking care of their disabled charges, and lobbies schools to accept disabled children.

The annual budget is $180,000, “and each year I have no idea where the money is going to come from,” said Randle, who chairs the foundation. “But somehow, it comes.”

Said the group’s executive director, Jim Stein of Minneapolis: “Our most immediate need is money to support our staff in Haiti and to buy equipment and supplies.”

Last year alone, 399 wheelchairs were distributed throughout the island. And recently, an anonymous donor gave $250,000 to help jump-start the construction of what will be Haiti’s first rehabilitation hospital.

Recently, Healing Hands gave seminars after the November collapse of a ramshackle school on the outskirts of Port-au-Prince, where more than 90 people, many of them children, were killed and more than 160 were injured. Haitians were taught about evacuation planning, survival skills and managing emotions in a country where little attention has been paid to building codes.

The need is desperate.

In October, a top United Nation’s official warned that the devastation from this year’s hurricane season has dealt a severe blow in efforts to combat poverty, according to the U.N. News Service.

Emergency Relief Coordinator John Holmes said that the four successive hurricanes have left an estimated 1 million people needing humanitarian relief and major recovery assistance.

Even before the storms, 80 percent of the island’s population lived under the poverty line and more than half in abject poverty, according to a report from the Central Intelligence Agency.

Two-thirds of all Haitians depend on small-scale subsistence farming and remain vulnerable to damage from frequent natural disasters made worse by the country’s widespread deforestation in lands cleared for food and fuel. The report said that inadequate supplies of potable water and soil erosion remain major environmental problems.

Source

They need a lot more help then they are getting.

Don’t turn your back on girls – Sexual violence in Haiti

27 November 2008

Sexual violence against girls in Haiti is widespread and pervasive and, although already at shocking levels, is said to be on the increase. While information on the true levels remains scarce, there is much evidence of sexual violence both in the family and within the wider community, particularly by armed gangs.

Public security and the legacy of sexual violence
Against a backdrop of kidnappings, criminal violence and gang warfare, violence against women and girls in the community has soared. One trend is the prevalence of rapes involving groups of armed men.

For the three years that followed the military coup in 1991 when President Jean-Bertrand Aristide was ousted, rape was used as a political weapon to instil fear and punish those who were believed to have supported the democratic government. During this time, there were widespread reports of armed men raping women.

Since the fall of the military regime, this has become a common practice among criminal gangs. In run up to Haiti’s annual carnival in February last year, 50 cases of rape were reported in just three days in the capital against women and girls in the capital Port-au-Prince.

Violence in the family is also prevalent and often hidden. Children often lack the resources and support they need to report violence in which family members participate or collude. The result of the failure to acknowledge and address this problem is a social climate in which violence in the family is seen as normal and inevitable.

Poverty in Haiti is extreme and plays a major role in putting girls at greater risk of sexual violence. Girls are bribed to remain silent by perpetrators, who are able to give them money to pay their schools or accommodation fees. Others who go in search of a public place with lighting by which to do their homework because their home has no electricity are attacked by groups of men.

Girls who become pregnant as a result of sexual violence find themselves at risk due to the lack of adequate healthcare. Only one in every four births in Haiti is assisted by qualified health personnel and large numbers of women and girls are dying as a result of pregnancy related complications.

The consequences of sexual violence on girls are profound and lasting. In addition to immediate physical injuries, survivors may have to face unwanted pregnancy; sexually transmitted diseases; and mental health problems such as post-traumatic stress disorder, anxiety and depression.

These consequences can have particularly series long term effects on girls, who are at higher risk of dying during childbirth or pregnancy and may also find their education disrupted, or find themselves excluded from school due to pregnancy.

One girl who raped when she was eight years old said: “I was going to school, but I left after I came here [to a shelter] because my father raped me. I was in the first year. I loved copying the lessons, writing. When I grow up I would like to be a doctor.”

Barriers to justice
Girls are often unwilling to report cases of rape, largely due to shame, fear, and social attitudes that tolerate male violence. Another major disincentive to reporting is the lack of confidence that girls will experience a positive and supportive response from law enforcement officials.

In some rural areas, the sole representative of the justice system is the justice of the peace. It is not uncommon for the justice of the peace to encourage girls who have faced violence accept an “amicable settlement” with the family of the perpetrator.

The justice system in Haiti is weak and ineffectual. The Police unit in charge of protecting minors is woefully under-staffed. In March 2008, the unit had 12 officers to cover the entire country and not a single vehicle. It is not surprising that so many of those who attack girls are never brought to justice, and so many girls feel there is no purpose in reporting crimes of sexual violence.

The authorities in Haiti have taken steps in recent years to address the problem of violence against women and girls. The Ministry of Women’s Affairs was established in 1994 and has been involved in important initiatives to address the problem.

In 1995, a National Plan of Action to Combat Violence Against Women was adopted. If implemented, this could bring about significant improvements in prevention and punishment.

The Haitian authorities face major challenges posed by the ongoing public security crisis, a succession of humanitarian disasters, and high levels of poverty and marginalization. These important concerns cannot be allowed to drown out the needs of Haitian girls.

Amnesty International is calling on the Haitian authorities to take immediate action to safeguard the rights of girls:

  • Collect comprehensive data on the nature and extent of violence against women and girls. The lack of data currently stands in the way of devising effective solutions;
  • Investigate and prosecute all complaints of sexual violence;
  • Ensure that police provide a safe environment for girls to report sexual violence, and ensure that all complaints are promptly and effectively investigated.

Source

Sanctions have played a role in the poverty. Recovery could take decades or longer unless outside help is increased.

Haiti Sanctions

Study Says Haiti Sanctions Kill Up to 1,000 Children a Month

By HOWARD W. FRENCH,  November 9, 1993

International Sanctions on Haiti Fueled Repression, UN Official Says

By Don Bohning,  March 1, 1999

Seems to me Sanctions are a form of extermination, of innocent people.

Economic sanctions are a “Weapon of Mass Destruction”

Published in: on November 29, 2008 at 5:09 am  Comments Off on Poverty crushing the People of Haiti  
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Zimbabwe: Cholera Feeds Off a Perfect Storm

Harare:

All but one of Zimbabwe’s ten provinces have reported fatalities as a result of a cholera epidemic sweeping the country, according to the UN.

The rapid spread of the waterborne disease is attributed to a confluence of events that have created the perfect storm, in which a disease described by the World Health Organisation (WHO) as “easily treatable”, is thriving.

The collapse of municipal services, such as potable water, refuse collection and sanitation in the past few years, a health service hamstrung by an annual inflation rate that the government has estimated at 231 million percent, and the onset of the rainy season, have all conspired to officially kill about 300 people and infect thousands more.

The eastern province of Manicaland is so far the only place not to have recorded any official cholera deaths. “The cholera outbreak has taken a national dimension. Newer outbreaks are reported from all the provinces,” said a situational report by the UN Office for the Coordination of Humanitarian Affairs (OCHA).

“The spatial distribution of outbreaks will most likely continue to expand, as well as the number of people infected as the water and sanitation [services] worsen, with severe water shortages, sewage and waste disposal problems reported in most densely populated areas. The starting of the rains further raises alarm levels,” the report said.

Warnings by the UN and other relief agencies that Zimbabwe was facing a humanitarian crisis, on top of acute food shortages – expected to peak in the first quarter of 2009, when nearly half the country’s 12 million population will require emergency food aid – were dismissed by President Robert Mugabe’s ZANU-PF government.

“The situation is under control,” Deputy Health Minister Edwin Muguti told an international news agency on 27 November, although the government was reportedly appealing to regional governments for body bags.

Efforts to contain the spread of the disease across international borders have failed, with victims seeking assistance from neighbouring countries, particularly the continent’s economic powerhouse, South Africa.

Neighbouring countries feel the effects

About 1,000 victims have received rehydration treatment at the South African border post of Beitbridge in recent weeks, according to local reports.

Barbara Hogan, South Africa’s health minister, told local media on 26 November that an emergency medical response team, including nurses, epidemiologists and medical supplies, had been sent to the Zimbabwe border.

“Given the scale of the outbreak, the weakened health system in Zimbabwe and the extent of the cross-border movement of people … all aspects or our interventions need to be scaled up, and a renewed sense of urgency [is required] to deal with this outbreak,” Hogan told a press briefing in Pretoria.

She dismissed claims by Zimbabwean authorities that the cholera situation was under control, as there was “no recognised government”.

Zambian authorities have put medical services in Southern Province, which borders Zimbabwe, on high alert, health ministry spokesman Canicius Banda told IRIN, although there have been no recorded incidents of cholera in the province.

“We are not leaving anything to chance. We are screening all Zimbabwean nationals crossing into Zambia and, should anyone be found with cholera, our health workers will treat them,” Banda said.

“We have health workers at all the three border posts [with Zimbabwe] … our health workers are very much alert in case of any possible [cholera] outbreak,” he said. “All the [10] districts in the province have epidemic preparedness committees which run all year round; these have also been put on alert.”

Zambia shares three border posts with its southern neighbour at Chirundu, Kariba and Kazungula, in the country’s tourism capital, Livingstone.

“We are also carrying out random inspections of all foodstuffs, such as meat at the market places, to ensure that the products sold are of high standards,” Banda said.

Since the onset of the rainy season, Zambia has recorded about 1,000 cholera cases in its northern regions and the capital, Lusaka; there have been nine confirmed fatalities.

The Zimbabwe Association of Doctors for Human Rights (ZADHR), which advocates the right to care and protection from abuse, told media organisations on 26 November that the country’s cholera death toll was probably much greater as a consequence of the collapse of health services, because many hundreds of deaths were not recorded when people died in their homes.

One in ten fatality rate

ZADHR Chairman Dr Douglas Gwadziro said figures “are pointing towards a 10 percent death rate of those that have been affected by cholera”, although the waterborne intestinal infection causing acute diarrhoea and vomiting, which can cause death from dehydration within 24 hours, could be easily treated with dehydration salts.

Figures are pointing towards a 10 percent death rate of those that have been affected by cholera

According to the state-controlled daily newspaper, The Herald, China had pledged to supply US$500,000 worth of cholera vaccines “as soon as consultations with the Ministry of Foreign Affairs were complete.”

However, when the vaccines arrive, distribution and administration may be complicated by industrial action in the health services. Health workers have defied a government order to return to work, and said they would only comply with government demands in 2009 if concerns about their remuneration were addressed.

Nurses are demanding better salaries to cope with hyperinflation estimated by independent economists to be billions of percent annually, and exemption from the Z$500,000 (US$0.25) daily maximum cash withdrawal from banks because they are “essential” personnel.

The average one-way commuter fare in the capital, Harare, is about Z$1 million (US$0.50), if there is cash available.

Doctors working in the public health services are also refusing to return to work unless the government pegs their salary to a monthly equivalent of US$2,500.

Lovemore Matombo, president of the Zimbabwe Congress of Trade Unions (ZCTU), the country’s largest union federation, said the growing trend of government to sanction the use of foreign currency by retail outlets prejudiced both government employees and other workers, although less than 20 percent of people were employed in the formal economy.

“It does not make sense for the government to say traders can sell commodities in foreign currency, while it pays its workers in local currency which they cannot get from the bank,” Matombo told IRIN.

“Calls by workers that they should be paid in foreign currency are legitimate because almost all outlets are providing services using the US dollar denomination,” he said.

“If the government acknowledges that its currency is useless by allowing traders to sell in US dollars, why does it want the workers to receive the useless and worthless local currency?”

[ This report does not necessarily reflect the views of the United Nations ]

Source

Economic sanctions are a “Weapon of Mass Destruction”

In Zimbabwe Doctors and Nurses beaten by police during peaceful protest

Economic sanctions are a “Weapon of Mass Destruction”

As many of us well know , Zimbabwe is under Sanctions. By the US and EU among others as well.

This bit of information may give you a bit of enlightenment as to how Sanctions are used and most importantly are abused by those in charge.  This typical of what is done.  Everyone should be aware of how Sanctions really work and what is really happening.  Sanctions are just another “Weapon of Mass Destruction”.
By Joy Gordon

Economic sanctions as a weapon of mass destruction

In searching for evidence of the potential danger posed by Iraq, the Bush Administration need have looked no further than the well-kept record of U.S. manipulation of the sanctions program since 1991. If any international act in the last decade is sure to generate enduring bitterness toward the United States, it is the epidemic suffering needlessly visited on Iraqis via U.S. fiat inside the United Nations Security Council. Within that body, the United States has consistently thwarted Iraq from satisfying its most basic humanitarian needs, using sanctions as nothing less than a deadly weapon, and, despite recent reforms, continuing to do so. Invoking security concerns—including those not corroborated by U.N. weapons inspectors—U.S. policymakers have effectively turned a program of international governance into a legitimized act of mass slaughter.

Since the U.N. adopted economic sanctions in 1945, in its charter, as a means of maintaining global order, it has used them fourteen times (twelve times since 1990). But only those sanctions imposed on Iraq have been comprehensive, meaning that virtually every aspect of the country’s imports and exports is controlled, which is particularly damaging to a country recovering from war. Since the program began, an estimated 500,000 Iraqi children under the age of five have died as a result of the sanctions—almost three times as many as the number of Japanese killed during the U.S. atomic bomb attacks.

News of such Iraqi fatalities has been well documented (by the United Nations, among others), though underreported by the media. What has remained invisible, however, is any documentation of how and by whom such a death toll has been justified for so long. How was the danger of goods entering Iraq assessed, and how was it weighed, if at all, against the mounting collateral damage? As an academic who studies the ethics of international relations, I was curious. It was easy to discover that for the last ten years a vast number of lengthy holds had been placed on billions of dollars’ worth of what seemed unobjectionable—and very much needed—imports to Iraq. But I soon learned that all U.N. records that could answer my questions were kept from public scrutiny. This is not to say that the U.N. is lacking in public documents related to the Iraq program. What is unavailable are the documents that show how the U.S. policy agenda has determined the outcome of humanitarian and security judgments.

The operation of Iraq sanctions involves numerous agencies within the United Nations. The Security Council’s 661 Committee is generally responsible for both enforcing the sanctions and granting humanitarian exemptions. The Office of Iraq Programme (OIP), within the U.N. Secretariat, operates the Oil for Food Programme. Humanitarian agencies such as UNICEF and the World Health Organization work in Iraq to monitor and improve the population’s welfare, periodically reporting their findings to the 661 Committee. These agencies have been careful not to publicly discuss their ongoing frustration with the manner in which the program is operated.

Over the last three years, through research and interviews with diplomats, U.N. staff, scholars, and journalists, I have acquired many of the key confidential U.N. documents concerning the administration of Iraq sanctions. I obtained these documents on the condition that my sources remain anonymous. What they show is that the United States has fought aggressively throughout the last decade to purposefully minimize the humanitarian goods that enter the country. And it has done so in the face of enormous human suffering, including massive increases in child mortality and widespread epidemics. It has sometimes given a reason for its refusal to approve humanitarian goods, sometimes given no reason at all, and sometimes changed its reason three or four times, in each instance causing a delay of months. Since August 1991 the United States has blocked most purchases of materials necessary for Iraq to generate electricity, as well as equipment for radio, telephone, and other communications. Often restrictions have hinged on the withholding of a single essential element, rendering many approved items useless. For example, Iraq was allowed to purchase a sewage-treatment plant but was blocked from buying the generator necessary to run it; this in a country that has been pouring 300,000 tons of raw sewage daily into its rivers.


Saddam Hussein’s government is well known for its human-rights abuses against the Kurds and Shi’ites, and for its invasion of Kuwait. What is less well known is that this same government had also invested heavily in health, education, and social programs for two decades prior to the Persian Gulf War. While the treatment of ethnic minorities and political enemies has been abominable under Hussein, it is also the case that the well-being of the society at large improved dramatically. The social programs and economic development continued, and expanded, even during Iraq’s grueling and costly war with Iran from 1980 to 1988, a war that Saddam Hussein might not have survived without substantial U.S. backing. Before the Persian Gulf War, Iraq was a rapidly developing country, with free education, ample electricity, modernized agriculture, and a robust middle class. According to the World Health Organization, 93 percent of the population had access to health care.

The devastation of the Gulf War and the sanctions that preceded and sustained such devastation changed all that. Often forgotten is the fact that sanctions were imposed before the war-in August of 1990-in direct response to Iraq’s invasion of Kuwait. After the liberation of Kuwait, sanctions were maintained, their focus shifted to disarmament. In 1991, a few months after the end of the war, the U.N. secretary general’s envoy reported that Iraq was facing a crisis in the areas of food, water, sanitation, and health, as well as elsewhere in its entire infrastructure, and predicted an “imminent catastrophe, which could include epidemics and famine, if massive life-supporting needs are not rapidly met.” U.S. intelligence assessments took the same view. A Defense Department evaluation noted that “Degraded medical conditions in Iraq are primarily attributable to the breakdown of public services (water purification and distribution, preventive medicine, water disposal, health-care services, electricity, and transportation). . . . Hospital care is degraded by lack of running water and electricity.”

According to Pentagon officials, that was the intention. In a June 23, 1991, Washington Post article, Pentagon officials stated that Iraq’s electrical grid had been targeted by bombing strikes in order to undermine the civilian economy. “People say, ‘You didn’t recognize that it was going to have an effect on water or sewage,’” said one planning officer at the Pentagon. “Well, what were we trying to do with sanctions-help out the Iraqi people? No. What we were doing with the attacks on infrastructure was to accelerate the effect of the sanctions.”

Iraq cannot legally export or import any goods, including oil, outside the U.N. sanctions system. The Oil for Food Programme, intended as a limited and temporary emergency measure, was first offered to Iraq in 1991, and was rejected. It was finally put into place in 1996. Under the programme, Iraq was permitted to sell a limited amount of oil (until 1999, when the limits were removed), and is allowed to use almost 60 percent of the proceeds to buy humanitarian goods. Since the programme began, Iraq has earned approximately $57 billion in oil revenues, of which it has spent about $23 billion on goods that actually arrived. This comes to about $170 per year per person, which is less than one half the annual per capita income of Haiti, the poorest country in the Western Hemisphere. Iraqi diplomats noted last year that this is well below what the U.N. spends on food for dogs used in Iraqi de-mining operations (about $400 per dog per year on imported food, according to the U.N.).

The severe limits on funds created a permanent humanitarian crisis, but the situation has been worsened considerably by chronic delays in approval for billions of dollars’ worth of goods. As of last July more than $5 billion in goods was on hold.

The Office of Iraq Programme does not release information on which countries are blocking contracts, nor does any other body. Access to the minutes of the Security Council’s 661 Committee is “restricted.” The committee operates by consensus, effectively giving every member veto power. Although support for the sanctions has eroded considerably, the sanctions are maintained by “reverse veto” in the Security Council. Because the sanctions did not have an expiration date built in, ending them would require another resolution by the council. The United States (and Britain) would be in a position to veto any such resolution even though the sanctions on Iraq have been openly opposed by three permanent members—France, Russia, and China—for many years, and by many of the elected members as well. The sanctions, in effect, cannot be lifted until the United States agrees.

Nearly everything for Iraq’s entire infrastructure—electricity, roads, telephones, water treatment—as well as much of the equipment and supplies related to food and medicine has been subject to Security Council review. In practice, this has meant that the United States and Britain subjected hundreds of contracts to elaborate scrutiny, without the involvement of any other country on the council; and after that scrutiny, the United States, only occasionally seconded by Britain, consistently blocked or delayed hundreds of humanitarian contracts.

In response to U.S. demands, the U.N. worked with suppliers to provide the United States with detailed information about the goods and how they would be used, and repeatedly expanded its monitoring system, tracking each item from contracting through delivery and installation, ensuring that the imports are used for legitimate civilian purposes. Despite all these measures, U.S. holds actually increased. In September 2001 nearly one third of water and sanitation and one quarter of electricity and educational—supply contracts were on hold. Between the springs of 2000 and 2002, for example, holds on humanitarian goods tripled.

Among the goods that the United States blocked last winter: dialysis, dental, and fire—fighting equipment, water tankers, milk and yogurt production equipment, printing equipment for schools. The United States even blocked a contract for agricultural—bagging equipment, insisting that the U.N. first obtain documentation to “confirm that the ‘manual’ placement of bags around filling spouts is indeed a person placing the bag on the spout.”

Although most contracts for food in the last few years bypassed the Security Council altogether, political interference with related contracts still occurred. In a March 20, 2000, 661 Committee meeting—after considerable debate and numerous U.S. and U.K. objections—a UNICEF official, Anupama Rao Singh, made a presentation on the deplorable humanitarian situation in Iraq. Her report included the following: 25 percent of children in south and central governorates suffered from chronic malnutrition, which was often irreversible, 9 percent from acute malnutrition, and child—mortality rates had more than doubled since the imposition of sanctions.

A couple of months later, a Syrian company asked the committee to approve a contract to mill flour for Iraq. Whereas Iraq ordinarily purchased food directly, in this case it was growing wheat but did not have adequate facilities to produce flour. The Russian delegate argued that, in light of the report the committee had received from the UNICEF official, and the fact that flour was an essential element of the Iraqi diet, the committee had no choice but to approve the request on humanitarian grounds. The delegate from China agreed, as did those from France and Argentina. But the U.S. representative, Eugene Young, argued that “there should be no hurry” to move on this request: the flour requirement under Security Council Resolution 986 had been met, he said; the number of holds on contracts for milling equipment was “relatively low”; and the committee should wait for the results of a study being conducted by the World Food Programme first. Ironically, he also argued against the flour—milling contract on the grounds that “the focus should be on capacity—building within the country”—even though that represented a stark reversal of U.S. policy, which consistently opposed any form of economic development within Iraq. The British delegate stalled as well, saying that he would need to see “how the request would fit into the Iraqi food programme,” and that there were still questions about transport and insurance. In the end, despite the extreme malnutrition of which the committee was aware, the U.S. delegate insisted it would be “premature” to grant the request for flour production, and the U.K. representative joined him, blocking the project from going forward.

Many members of the Security Council have been sharply critical of these practices. In an April 20, 2000, meeting of the 661 Committee, one member after another challenged the legitimacy of the U.S. decisions to impede the humanitarian contracts. The problem had reached “a critical point,” said the Russian delegate; the number of holds was “excessive,” said the Canadian representative; the Tunisian delegate expressed concern over the scale of the holds. The British and American delegates justified their position on the grounds that the items on hold were dual—use goods that should be monitored, and that they could not approve them without getting detailed technical information. But the French delegate challenged this explanation: there was an elaborate monitoring mechanism for telecommunications equipment, he pointed out, and the International Telecommunication Union had been involved in assessing projects. Yet, he said, there were holds on almost 90 percent of telecommunications contracts. Similarly, there was already an effective monitoring mechanism for oil equipment that had existed for some time; yet the holds on oil contracts remained high. Nor was it the case, he suggested, that providing prompt, detailed technical information was sufficient to get holds released: a French contract for the supply of ventilators for intensive—care units had been on hold for more than five months, despite his government’s prompt and detailed response to a request for additional technical information and the obvious humanitarian character of the goods.

Dual-use goods, of course, are the ostensible target of sanctions, since they are capable of contributing to Iraq’s military capabilities. But the problem remains that many of the tools necessary for a country simply to function could easily be considered dual use. Truck tires, respirator masks, bulldozers, and pipes have all been blocked or delayed at different times for this reason. Also under suspicion is much of the equipment needed to provide electricity, telephone service, transportation, and clean water.

Yet goods presenting genuine security concerns have been safely imported into Iraq for years and used for legitimate purposes. Chlorine, for example—vital for water purification, and feared as a possible source of the chlorine gas used in chemical weapons—is aggressively monitored, and deliveries have been regular. Every single canister is tracked from the time of contracting through arrival, installation, and disposal of the empty canister. With many other goods, however, U.S. claims of concern over weapons of mass destruction are a good deal shakier.

Last year the United States blocked contracts for water tankers, on the grounds that they might be used to haul chemical weapons instead. Yet the arms experts at UNMOVIC had no objection to them: water tankers with that particular type of lining, they maintained, were not on the “1051 list”—the list of goods that require notice to U.N. weapons inspectors. Still, the United States insisted on blocking the water tankers—this during a time when the major cause of child deaths was lack of access to clean drinking water, and when the country was in the midst of a drought. Thus, even though the United States justified blocking humanitarian goods out of concern over security and potential military use, it blocked contracts that the U.N.’s own agency charged with weapons inspections did not object to. And the quantities were large. As of September 2001, “1051 disagreements” involved nearly 200 humanitarian contracts. As of last March, there were $25 million worth of holds on contracts for hospital essentials—sterilizers, oxygen plants, spare parts for basic utilities—that, despite release by UNMOVIC, were still blocked by the United States on the claim of “dual use.”

Beyond its consistent blocking of dual-use goods, the United States found many ways to slow approval of contracts. Although it insisted on reviewing every contract carefully, for years it didn’t assign enough staff to do this without causing enormous delays. In April 2000 the United States informed the 661 Committee that it had just released $275 million in holds. This did not represent a policy change, the delegate said; rather, the United States had simply allocated more financial resources and personnel to the task of reviewing the contracts. Thus millions in humanitarian contracts had been delayed not because of security concerns but simply because of U.S. disinterest in spending the money necessary to review them. In other cases, after all U.S. objections to a delayed contract were addressed (a process that could take years), the United States simply changed its reason for the hold, and the review process began all over. After a half-million-dollar contract for medical equipment was blocked in February 2000, and the company spent two years responding to U.S. requests for information, the United States changed its reason for the hold, and the contract remained blocked. A tremendous number of other medical-equipment contracts suffered the same fate. As of September 2001, nearly a billion dollars’ worth of medical-equipment contracts—for which all the information sought had been provided—was still on hold.


Among the many deprivations Iraq has experienced, none is so closely correlated with deaths as its damaged water system. Prior to 1990, 95 percent of urban households in Iraq had access to potable water, as did three quarters of rural households. Soon after the Persian Gulf War, there were widespread outbreaks of cholera and typhoid—diseases that had been largely eradicated in Iraq—as well as massive increases in child and infant dysentery, and skyrocketing child and infant mortality rates. By 1996 all sewage-treatment plants had broken down. As the state’s economy collapsed, salaries to state employees stopped, or were paid in Iraqi currency rendered nearly worthless by inflation. Between 1990 and 1996 more than half of the employees involved in water and sanitation left their jobs. By 2001, after five years of the Oil for Food Programme’s operating at full capacity, the situation had actually worsened.

In the late 1980s the mortality rate for Iraqi children under five years old was about fifty per thousand. By 1994 it had nearly doubled, to just under ninety. By 1999 it had increased again, this time to nearly 130; that is, 13 percent of all Iraqi children were dead before their fifth birthday. For the most part, they die as a direct or indirect result of contaminated water.

The United States anticipated the collapse of the Iraqi water system early on. In January 1991, shortly before the Persian Gulf War began and six months into the sanctions, the Pentagon’s Defense Intelligence Agency projected that, under the embargo, Iraq’s ability to provide clean drinking water would collapse within six months. Chemicals for water treatment, the agency noted, “are depleted or nearing depletion,” chlorine supplies were “critically low,” the main chlorine-production plants had been shut down, and industries such as pharmaceuticals and food processing were already becoming incapacitated. “Unless the water is purified with chlorine,” the agency concluded, “epidemics of such diseases as cholera, hepatitis, and typhoid could occur.”

All of this indeed came to pass. And got worse. Yet U.S. policy on water-supply contracts remained as aggressive as ever. For every such contract unblocked in August 2001, for example, three new ones were put on hold. A 2001 UNICEF report to the Security Council found that access to potable water for the Iraqi population had not improved much under the Oil for Food Programme, and specifically cited the half a billion dollars of water- and sanitation-supply contracts then blocked—one third of all submitted. UNICEF reported that up to 40 percent of the purified water run through pipes is contaminated or lost through leakage. Yet the United States blocked or delayed contracts for water pipes, and for the bulldozers and earth-moving equipment necessary to install them. And despite approving the dangerous dual-use chlorine, the United States blocked the safety equipment necessary to handle the substance—not only for Iraqis but for U.N. employees charged with chlorine monitoring there.


It is no accident that the operation of the 661 Committee is so obscured. Behind closed doors, ensconced in a U.N. bureaucracy few citizens could parse, American policymakers are in a good position to avoid criticism of their practices; but they are also, rightly, fearful of public scrutiny, as a fracas over a block on medical supplies last year illustrates.

In early 2001, the United States had placed holds on $280 million in medical supplies, including vaccines to treat infant hepatitis, tetanus, and diphtheria, as well as incubators and cardiac equipment. The rationale was that the vaccines contained live cultures, albeit highly weakened ones. The Iraqi government, it was argued, could conceivably extract these, and eventually grow a virulent fatal strain, then develop a missile or other delivery system that could effectively disseminate it. UNICEF and U.N. health agencies, along with other Security Council members, objected strenuously. European biological-weapons experts maintained that such a feat was in fact flatly impossible. At the same time, with massive epidemics ravaging the country, and skyrocketing child mortality, it was quite certain that preventing child vaccines from entering Iraq would result in large numbers of child and infant deaths. Despite pressure behind the scenes from the U.N. and from members of the Security Council, the United States refused to budge. But in March 2001, when the Washington Post and Reuters reported on the holds—and their impact—the United States abruptly announced it was lifting them.

A few months later, the United States began aggressively and publicly pushing a proposal for “smart sanctions,” sometimes known as “targeted sanctions.” The idea behind smart sanctions is to “contour” sanctions so that they affect the military and the political leadership instead of the citizenry. Basic civilian necessities, the State Department claimed, would be handled by the U.N. Secretariat, bypassing the Security Council. Critics pointed out that in fact the proposal would change very little since everything related to infrastructure was routinely classified as dual use, and so would be subject again to the same kinds of interference. What the “smart sanctions” would accomplish was to mask the U.S. role. Under the new proposal, all the categories of goods the United States ordinarily challenged would instead be placed in a category that was, in effect, automatically placed on hold. But this would now be in the name of the Security Council—even though there was little interest on the part of any of its other members (besides Britain) for maintaining sanctions, and even less interest in blocking humanitarian goods.

After the embarrassing media coverage of the child-vaccine debacle, the State Department was eager to see the new system in place, and to see that none of the other permanent members of the Security Council—Russia, Britain, China, and France—vetoed the proposal. In the face of this new political agenda, U.S. security concerns suddenly disappeared. In early June of last year, when the “smart sanctions” proposal was under negotiation, the United States announced that it would lift holds on $800 million of contracts, of which $200 million involved business with key Security Council members. A few weeks later, the United States lifted holds on $80 million of Chinese contracts with Iraq, including some for radio equipment and other goods that had been blocked because of dual-use concerns.

In the end, China and France agreed to support the U.S. proposal. But Russia did not, and immediately after Russia vetoed it, the United States placed holds on nearly every contract that Iraq had with Russian companies. Then last November, the United States began lobbying again for a smart-sanctions proposal, now called the Goods Review List (GRL). The proposal passed the Security Council in May 2002, this time with Russia’s support. In what one diplomat, anonymously quoted in the Financial Times of April 3, 2002, called “the boldest move yet by the U.S. to use the holds to buy political agreement,” the Goods Review List had the effect of lifting $740 million of U.S. holds on Russian contracts with Iraq, even though the State Department had earlier insisted that those same holds were necessary to prevent any military imports.

Under the new system, UNMOVIC and the International Atomic Energy Agency make the initial determination about whether an item appears on the GRL, which includes only those materials questionable enough to be passed on to the Security Council. The list is precise and public, but huge. Cobbled together from existing U.N. and other international lists and precedents, the GRL has been virtually customized to accommodate the imaginative breadth of U.S. policymakers’ security concerns. Yet when U.N. weapons experts began reviewing the $5 billion worth of existing holds last July, they found that very few of them were for goods that ended up on the GRL or warranted the security concern that the United States had originally claimed. As a result, hundreds of holds have been lifted in the last few months.

This mass release of old holds—expected to have been completed in October—should have made a difference in Iraq. But U.S. and British maneuvers on the council last year makes genuine relief unlikely. In December 2000, the Security Council passed a resolution allowing Iraq to spend 600 million euros (about $600 million) from its oil sales on maintenance of its oil-production capabilities. Without this, Iraq would still have to pay for these services, but with no legal avenue to raise the funds. The United States, unable in the end to agree with Iraq on how the funds would be managed, blocked the measure’s implementation. In the spring of 2001, the United States accused Iraq of imposing illegal surcharges on the middlemen who sell to refiners. To counter this, the United States and Britain devised a system that had the effect of undermining Iraq’s basic capacity to sell oil: “retroactive pricing.” Taking advantage of the fact that the 661 Committee sets the price Iraq receives from each oil buyer, the United States and Britain began to systematically withhold their votes on each price until the relevant buying period had passed. The idea was that then the alleged surcharge could be subtracted from the price after the sale had occurred, and that price would then be imposed on the buyer. The effect of this practice has been to torpedo the entire Oil for Food Programme. Obviously, few buyers would want to commit themselves to a purchase whose price they do not know until after they agree to it. As a result of this system, Iraq’s oil income has dropped 40 percent since last year, and more than $2 billion in humanitarian contracts—all of them fully approved—are now stalled. Once again, invoking tenuous security claims, the United States has put in place a device that will systematically cause enormous human damage in Iraq.


Some would say that the lesson to be learned from September 11 is that we must be even more aggressive in protecting what we see as our security interests. But perhaps that’s the wrong lesson altogether. It is worth remembering that the worst destruction done on U.S. soil by foreign enemies was accomplished with little more than hatred, ingenuity, and box cutters. Perhaps what we should learn from our own reactions to September 11 is that the massive destruction of innocents is something that is unlikely to be either forgotten or forgiven. If this is so, then destroying Iraq, whether with sanctions or with bombs, is unlikely to bring the security we have gone to such lengths to preserve.

Source

The Cholera epidemic is just one of the problems of Sanctions. What happened in Iraq,  Afghanistan  and other countries that have been sanctioned is also happening in Zimbabwe.

Those behind the Sanctions, are in great part to blame.  They will let people die. They will deliberately withhold supplies needed for clean water, medical necessities and food. Their rational, of course is rather pathetic.

Those in charge don’t want anyone to know the truth. They don’t want anyone to know what they do and how they kill people.  They do however want natural resources among other things.

Some of the Minerals produced in Zimbabwe

Ammonia
Asbestos
Bentonite
Chromite
Cobalt
Copper
Feldspar
Ferrochromium
Gold
Graphite
Hydraulic Cement
Industrial Sand And Gravel (Silica)
Iron Ore
Lithium Minerals And Brine
Magnesite
Nickel
Perlite
Pig Iron
Platinum-Group Metals
Raw Steel
Silver
Vermiculite

Source

Today Zimbabwe received a bit more help.

ZIMBABWE

Byo receives 5 600 kgs of chlorine

November 28 2008
In the advent of high cholera alert in Bulawayo, the City Council has benefited from a consignment of 5 600 kilograms of chlorine donated by the Zimbabwe National Water Authority and 600 litres of fuel from the Civil Protection Unit.

In the advent of high cholera alert in Bulawayo, the City Council has benefited from a consignment of 5 600 kilograms of chlorine donated by the Zimbabwe National Water Authority and 600 litres of fuel from the Civil Protection Unit.

Due to the illegal sanctions imposed on the country by the west the council, like other national institutions, is facing cash flow problems which are affecting service delivery.

As a result of the current financial crunch Bulawayo faces sewage reticulation challenges with a risk of a possible cholera outbreak.

Bulawayo is currently under water rationing due to the shortage of water chemicals and residents are concerned that this may worsen the cholera situation.

Commenting on the donation Governor and Resident Minister of Bulawayo Metropolitan Province Ambassador Cain Mathema said government will continue to assist local authorites with resources to improve service delivery.

He said through ZINWA government is providing complementary resources to the local authority to contain a possible cholera outbreak.

Source

Help For Zimbabwe with Cholera Epidemic is on the Way

Published in: on November 28, 2008 at 11:45 pm  Comments Off on Economic sanctions are a “Weapon of Mass Destruction”  
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Help For Zimbabwe with Cholera Epidemic is on the Way

The Zimbabwe Government finally reached out for some help.

China has pledged vaccines worth $500 000 to fight cholera in Zimbabwe, the country’s Herald newspaper reported today.

China’s deputy head of mission in Zimbabwe He Meng said his government would bring the vaccines as soon as talks with the ministry of foreign affairs had been concluded.

“We are sympathising with the Zimbabwean people and we want to help as best as we can to stop the spread of the cholera disease that has killed many people in this country,” he was quoted as saying.

China would also give Zimbabwe food to help ease shortages.

World Health Organisation (WHO) country representative Dr Custodia Mandlhate said containing the outbreaks with the prevailing poor water supply and sanitation was difficult.

The WHO – a United Nations agency – was helping the government co-ordinate partner contribution, support case investigation and manage and set up cholera treatment centres.

Cholera kits worth more than $900 000 were handed to the ministry of health and child welfare before the outbreak as strategic stocks.

Mandlhate said the WHO would procure different items valued at $400 000 to replace the stocks that were running out.

The latest report from the UN Office for the Co-ordination of Humanitarian Affairs indicated that so far 366 people had died of cholera in Zimbabwe, 108 of them in Harare.

A further 8,887 cases were attended to countrywide, with Harare topping the list with 4,697 cases.

Cholera cases in South Africa and Botswana had also been reported.

Meanwhile, the Zimbabwe Council of Chiefs president, Chief Fortune Charumbira, has called on the government to embark on “spirited” cholera awareness campaigns in the rural areas.

He said most rural people remained vulnerable to the disease because of lack of knowledge, the Herald reported.

Source

I did note that on just about every story I read the number of those who have died has varied from one to another. Seems the truth on that may never be known for sure.

The number of those infected also varied from one to another.

There are about 9,000 people infected give or take a few hundred one way or the other.

Those number can grow rapidly and those who are infected can die quickly if not treated.

The bacteria Vibrio cholerae is excreted by an infected person in the stools and vomit. It can then be spread directly to other people if they touch the patient and then fail to wash their hands before eating. The germ can also contaminate food or water supplies. In the latter case this will cause an explosive outbreak because many people will ingest the vibrion in a short period of time.

Once inside the intestine, the organism multiplies and produces a toxin. This toxin causes the cells lining the intestine to secrete massive volumes of fluid and leads to diarrhea and vomiting. A patient under treatment can lose more than 50 liters of fluid during a bout of cholera.

A person who is not treated will die of dehydration well before this. In fact, death usually occurs when 10 to 15 per cent of the total body weight is lost. In severe cases this may take only a couple of hours. From  Doctors Without Borders

SOUTH AFRICA, China and the United Nations and concerned Non-Governmental Organisations sympathetic to the humanitarian situation in Zimbabwe are at the forefront of fighting cholera.

Yesterday the South African Limpopo Health Services Department — in partnership with Gift of the Givers Foundation, a non-governmental organisation — yesterday donated equipment worth R1,2 million to Beitbridge District Hospital for use in combating the cholera outbreak.

Gift of Givers Foundation is an independent African NGO established in August 1992. Since it was founded the NGO has delivered 200 Million Rand of aid in a 14 year period to 23 countries, and millions of people have benefited.It currently operates in over 15 countries including Iraq, Somalia, Afghanistan and Sudan.

The NGO is involved in disaster relief, primary health care clinics, feeding schemes, water purification and waterwell provision, distribution of new blankets, new clothing and food parcels, bursaries, educational support, toy story, agricultural self help schemes, job creation, counselling services, a drug rehab, HIV/AIDS workshops, skills development and life altering workshops.

The equipment donated to Zimbabwe by Gift of the Givers Foundation spokesperson Mr Allauddin Sayed comprised 25 water tanks (each with a capacity of 10 000 litres), water treatment tablets, a generator and a consignment of medical and food supplies.

“We had to come in with this kind of assistance following appeals by the South African government on the problems faced by our brothers in Zimbabwe dealing with the cholera outbreak,” said Sayed.

“As an organisation, we are passionate about Africa, especially Zimbabwe being our neighbours and therefore we will continue to assist in whatever way so that we complement the efforts being made by their Government,” he added.

South Africa’s Department of Health and Social Development is also heavily involved in the fight against cholera in Zimbabwe after concerns raised during Sunday’s stakeholders meeting involving health officials from Zimbabwe and South Africa in Beitbridge.

The department will assist the Zimbabwe National Water Authority (Zinwa) in water purification and sewer treatment. Te two authorities say they will target water supply and sewer reticulation, particularly where effluent is flowing into the Limpopo River, which is the main source of water for both Beitbridge and Musina residents.

South Africa entered into an agreement with the Musina Municipality to help in transporting adequate clean water to Beitbridge.

Once the water treatment starts functioning properly, the water tanks would be connected to the Zinwa purification plant through the main pipeline.

This week the United Nations launched the consolidated appeal for 2009 for a total of $550 million, the highest appeal ever for Zimbabwe. Last year’s appeal was under $400 million and according to the U.N. had been “very well subscribed”, and was, at this point, 75 per cent funded.

Together with South Africa, the United Nations is part of a task force within Zimbabwe’s Ministry of Health set up to coordinate the response to the cholera situation.

The U.N. World Food Program appealed in October for $140 million to help 4 million Zimbabweans. The agency said earlier this month that international donors had not responded, forcing it to start rationing cereal and beans. It warned that food aid will run out by January unless it gets new funds.

So far only China and South Africa have made pledges for food aid beyond 2008.

U.N. Secretary-General Ban Ki-moon on Tuesday urged all donors to disregard their political views on Zimbabwe and provide money for critically needed food and to help battle the cholera outbreak.

U.N. spokeswoman Michele Montas said on Tuesday “The secretary-general urges all parties (NGOs) to support and provide humanitarian assistance leaving political considerations aside.”

Food aid and humanitarian assistance in Zimbabwe has been heavily politicized.

The Zimbabwean government in June this year temporarily banned all NGOs from carrying out relief work in the country accusing them of helping the opposition MDC to carry out political activities in remote areas.

The ban was lifted a month later. Very few NGOs, many of whom were calling for the lifting of the ban, have resumed work in the country.

A government official told the Zimbabwe Guardian that many of these NGOs had not been forthcoming during the outbreak of cholera and quietly waited for the crisis to deepen.

“Many NGOs that were at the forefront of calling for a lifting of the ban have not been forthcoming. Their statements were not altruistic but were meant to discredit the Government of Zimbabwe,” said the official adding that “our true friends, China and South Africa have been at the forefront of fighting the cholera outbreak”.

While South Africa, China and the U.N. are helping Zimbabwe to battle the cholera outbreak, Botswana on Wednesday called for neighbouring countries to impose sanctions against Zimbabwe to drive President Robert Mugabe out of power.

Speaking on BBC’s HardTalk programme, Botswana’s foreign minister called on neighbouring African nations to bring down the government of President Mugabe.

Phando Skelemani said mediation has failed to remove President Mugabe and African nations should impose sanctions to force that removal.

“If no petrol went in for a week, he can’t last,” Skelemani said on Wednesday.

CHOLERA OUTBREAKS

In less than a year Monrovia (Liberia), Conakry (Guinea), Bissau (Guinea Bissau), Nouakchott (Mauritania), Ouagadougou (Burkina Faso), Lusaka (Zambia) and now Luanda in Angola are dealing with cholera outbreaks.

Source
Sanctions however I think are a problem, sanctions can do as much human damage as war.
They do more harm to civilians then most realize. A point of interest. Zimbabwe is already being Sanctioned by the US and the EU.
Fortunately in spite of it all, finally they may get the help they so desperately need.
They need all the help they can get.

3,000 dead from cholera in Zimbabwe

Economic sanctions are a “Weapon of Mass Destruction”

Iraqi parliament OKs US troops for 3 more years

Sadrist lawmakers chanting and raising placards reading: “No, no to the agreement” react in Iraq’s parliament in Baghdad, Thursday, Nov. 27, 2008, as lawmakers vote to approve a security pact with the United States that lets American troops stay in the country for three more years – setting a clear timetable for a U.S. exit for the first time since the 2003 invasion. The vote in favor of the pact was backed by the ruling coalition’s Shiite and Kurdish blocs as well as the largest Sunni Arab bloc, which had demanded concessions for supporting the deal. The Shiite bloc agreed to a Sunni demand that the pact be put to a referendum by July 30, meaning the deal must undergo an additional hurdle next year. Under the agreement, U.S. forces will withdraw from Iraqi cities by June 30 and the entire country by Jan. 1, 2012. Iraq will have strict oversight over U.S. forces. (AP Photo/APTN)

BAGHDAD

The long, costly story of American military involvement in Iraq moved closer to an end Thursday when Iraq’s parliament approved a pact that requires all troops to be out in three years, marking the first clear timetable for a U.S. exit since the 2003 invasion that ousted Saddam Hussein.

The vote for the security deal followed months of tough talks between U.S. and Iraqi negotiators that at times seemed on the point of collapse, and then days of hardscrabble dealmaking between ethnic and sectarian groups whose centuries-old rifts had hardened during the first four years of the war.

The war has claimed more than 4,200 American lives and killed a far greater, untold number of Iraqis, consumed huge reserves of money and resources and eroded the global stature of the United States, even among its closest allies.

Now an end is in sight, and American troops could leave sooner if President-elect Barack Obama makes good on a plan to pull out combat troops within 16 months of moving into the White House in January.

Some troops are likely to redeploy to face an insurgency that has expanded in Afghanistan even as attacks have diminished in Iraq, where the U.S. believes Iraqi forces are better able to fend for themselves. The terms of the security pact reflect that confidence: U.S. forces will withdraw from Iraqi towns and cities by June 30 and the entire country by Jan. 1, 2012.

“This is a historic day for the great Iraqi people,” Prime Minister Nouri al-Maliki said in a 10-minute address on national television. “We have achieved one of its most important achievements in approving the agreement on the withdrawal of foreign forces from Iraq and restoring the sovereignty it lost two decades ago.”

Al-Maliki was referring to Iraq’s transformation into an international pariah following Saddam’s invasion of Kuwait in 1990, which led to U.N. sanctions and other penalties.

The security deal must now be ratified by the three-member Presidential Council, which is expected to approve it.

In the dealmaking that preceded the vote, Iraq’s ruling Shiite bloc agreed to a Sunni demand that the pact be put to a referendum by July 30, meaning the deal could be rejected next year if, for example, anti-U.S. anger builds and demands for an immediate withdrawal grow. By that time, however, U.S. troops will likely have left urban areas and will be a less intrusive presence.

Under the pact, Iraq will have strict oversight over the nearly 150,000 American troops now on the ground, representing a step toward full sovereignty for Iraq and a shift from the sense of frustration and humiliation that many Iraqis feel at the presence of American troops on their soil for so many years.

President George W. Bush applauded the approval of the pact, which is divided into two agreements governing security, economics, culture and other areas of cooperation. He said it “affirms the growth” of democracy in Iraq and noted the impact of last year’s “surge,” or U.S. troop buildup.

“Two years ago, this day seemed unlikely,” Bush said in a statement from his mountaintop retreat at Camp David, Md. “But the success of the surge and the courage of the Iraqi people set the conditions for these two agreements to be negotiated and approved by the Iraqi parliament.”

The pact was backed by the ruling coalition’s Shiite and Kurdish blocs and the largest Sunni Arab bloc, which wanted concessions for supporting the deal.

The Sunni bloc received assurances that the government would work to incorporate into the security forces the mostly Sunni fighters who had turned against al-Qaida in Iraq. The government also agreed to stop pursuing fighters with alleged past links to the Sunni-led insurgency.

The Shiite-led government has previously made those assurances, but there were doubts about its commitment. Pledges of fair treatment were approved in a nonbinding vote in parliament on Thursday.

The 275-seat parliament voted on the security pact with a show of hands. There were conflicting figures for the number of deputies who attended the session, but most reports said three-quarters of up to 200 lawmakers in the chamber voted in favor.

The victory appeared to satisfy the guidelines of the country’s most influential Shiite cleric, Grand Ayatollah Ali al-Sistani, who had indicated that the deal would be acceptable only if passed by a comfortable majority.

A bloc of 30 lawmakers loyal to Shiite cleric Muqtada al-Sadr, who wants U.S. forces to leave Iraq immediately, chanted protests and hoisted banners that said “No, no to the agreement” during the 25-minute session in parliament.

Al-Sadr’s militiamen have fought American troops in major uprisings over the years, but the cleric largely disbanded his force and does not appear to pose as much of a security threat as in the past. Al-Sadr is currently in Iran.

Still, anti-American sentiment is likely to remain a flashpoint for discontent in Iraq, where many people suspect the United States will stay to preserve interests in the Middle East such as access to oil.

“I reject this agreement because it was signed under the occupation and was the result of external pressure and lowly political sectarian deals at the expense of the Iraqi people,” said Qais Yassin, a Shiite engineer in eastern Baghdad, an al-Sadr stronghold.

Hussein Ali, a Shiite shop owner, said he thought the pact would ultimately have a positive outcome.

“The only thing we want is to live in peace and see the U.S. forces leave Iraq,” he said.

Sameer N. Yacoub contributed to this report.

Source

Published in: on November 28, 2008 at 7:56 am  Comments Off on Iraqi parliament OKs US troops for 3 more years  
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Iceland’s Glitnir seeks protection from U.S. creditors

November 26 2008

NEW YORK
Icelandic bank Glitnir banki hf sought bankruptcy protection on Wednesday from creditors in the United States.

The Reykjavik-based bank filed a Chapter 15 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. The bank was taken over by Iceland’s Financial Supervisory Authority last month as the global financial crisis took its toll on the country.

The International Monetary Fund approved a $2.1 billion loan for Iceland on November 19.

According to court documents, Glitnir’s court-appointed overseer wants to have the company’s court proceedings in Iceland recognized in the United States.

The company said in the filing that it had more than $1 billion in assets, and liabilities of more than $1 billion.

Iceland’s three biggest banks, Kaupthing , Landsbanki and Glitnir, collapsed in October under the weight of billions of dollars of debt accumulated in an aggressive overseas expansion. The government moved to takeover the banks, but the financial collapse shattered the country’s currency and forced Iceland to seek aid from the IMF.

(Reporting by Emily Chasan and Jonathan Stempel)

Source

Iceland to Pay ISK 245 Billion for Icesave?

November 27 2008

The net expenses that the Icelandic state has to cover because of deposits of Icelandic banks in foreign countries will amount to approximately ISK 245 billion (USD 1.8 billion, EUR 1.4 billion) according to a preliminary estimate by the International Monetary Fund (IMF).

While Prime Minister Geir H. Haarde and former majority owner of Landsbanki Björgólfur Gudmundsson have stated that the assets of the banks are likely to cover the deposits, the IMF does not appear to share their estimates. The IMF calculates that the assets of the Icelandic banks abroad will only cover about half of claims made by foreign states because of insured deposits, Fréttabladid reports.

According to IMF’s estimates, the gross expenses of the Icelandic state because of the deposits will amount to 47 percent of this year’s gross domestic produce (GDP). Assuming that the bank’s assets suffice for roughly half, around 19 percent will be the responsibility of Icelandic tax payers.

Iceland’s GDP in 2007 was more than ISK 1,293 billion (USD 9.2 billion, EUR 7.1 billion) according to numbers from Statistics Iceland.

Although it is unclear what this year’s GDP will be, the IMF expects Icelandic tax payers to be responsible for paying ISK 245 billion for foreign deposits, most of which are deposits in Landsbanki’s Icesave. However, Glitnir and Kaupthing banks also had deposits abroad.

That means that every Icelandic resident will be indebted by ISK 800,000 (USD 5,700, EUR 4,400) because of these deposits alone. To put these amounts in perspective, Fréttabladid states that ISK 245 billion would suffice to cover the operations of Iceland’s entire healthcare system for two years.

The newspaper was unable to receive comments from the resolution committees of the banks and Minister of Commerce and Banking Björgvin G. Sigurdsson.

Source

Published in: on November 28, 2008 at 6:40 am  Comments Off on Iceland’s Glitnir seeks protection from U.S. creditors  
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White supremicist sentenced in Nevada

November 27 2008

A member of the Aryan Warriors has been sentenced to 11 years in a federal prison for his role in a prison gang that dealt drugs, engaged in murder and corrupted jail guards.

Kory Crossman was sentenced Wednesday by U.S. District Judge Kent Dawson as part of a plea deal with the federal government.

Crossman already has served 32 months of a 52-month sentence for a weapons possession charge. Dawson agreed to allow the new sentence to run concurrently with his present prison term.

Fourteen members of the prison gang were indicted in 2007 on charges related to distributing methamphetamine and promoting white supremacy through the use of violence and extortion. The gang was active inside and outside of Nevada’s prison system.

Source

Published in: on November 28, 2008 at 6:10 am  Comments Off on White supremicist sentenced in Nevada  
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ONTARIO IS THE CHILD POVERTY CENTRE OF CANADA

Poverty is corrosive

By MARYANNE FIRTH

November 27 2008

Niagara residents were taught that local communities are guardians of poverty reduction.

About 60 people visited regional council chambers yesterday to learn how to put a plan in motion to reduce poverty in Ontario by 25 per cent over the next five years.

Social Planning Network of Ontario community co-ordinator Peter Clutterbuck and consultant Marvyn Novick made their stop in Thorold yesterday to discuss a blueprint for change and the importance communities have in that process.

Based on statistics and scenarios discussed during the meeting, social justice activists and their supporters have their work cut out for them.

There are nearly 1.3 million people living in poverty in Ontario, said Novick.

“Chronic poverty is corrosive and eats away at a healthy and inclusive Ontario.”

Ontario is also the child poverty centre of Canada, he said.

When the blueprint was written only months ago, 41 per cent of Ontario children in poverty were living with one parent working fulltime, all year. But the number has since risen to an alarming 45 per cent, he said.

There “isn’t any reason to justify working fulltime, full year and living in poverty,” Novick said.

Clutterbuck said he and Novick are in the midst of a 25-city tour, presenting their plan and gaining feedback from community members to see where changes may need to be made.

He said they hope to provide a “consensus” or “community-tested” document to the provincial government for consideration when completed.

Novick said the main reason poverty reduction is on the government’s agenda is that communities across Ontario stepped forward and got involved.

Premier Dalton McGuinty made a commitment in his first term to develop a poverty reduction strategy by the end of 2008. The plan is expected to be released within the next few weeks, including targets and indicators to be met.

Novick believes this commitment was made because communities were voicing their concerns on the issue.

The premier’s plan will be a foundation of the 25 in 5 Network – a group of organizations and individuals across the province committed to eliminating poverty.

The 25 in 5 target is “not an end, but a beginning,” said Novick. The goal is to evolve to a 50 per cent reduction rate in 10 years.

The biggest issue is that “poverty reduction has never been considered imperative,” he said.

“Imperatives are not choices, but something urgent that requires action.”

He called poverty reduction “easy to talk about and easy to delude about.”

“People always express concern,” he said, but unfortunately, there’s never a right time for action.

“We’re told we can’t invest in poverty reduction with good times or bad.”

To start, communities must change the common view about those struggling with poverty.

Novick said poverty is viewed as a reflection of personal failure.

The misconception is that people made bad choices and are morally or intellectually deficient because of their situation.

There is a “cold language” involved when talking about poverty that appears reasonable, he said. People use personal failure language, which “says ugly things with beautiful words.”

Dependency, passive and cycle of poverty, are some of the terms unfairly used to describe those stuck in the process, said Novick.

It’s assumed that for some people, social assistance is considered “a joy, it’s a free ride, something to aspire to,” he said. These types of words and the assumptions that surround them are “begging for evidence which is never submitted.”

These assumptions are presumed common sense, he said, and are therefore seen as not requiring evidence.

He said it’s time to stop the moral defamation people on social assistance or disability go through.

Change also needs to come from the government, because only structural change in the system can improve the living conditions facing families across the province.

The government should be modelling economic strategies after countries including Denmark, Finland and Sweden, he said. These countries “have low levels of poverty, strong public programs and strong public revenue.”

“High taxes are not good or bad, it’s what you do with them.”

The best way to deal with hard times is to improve the income of vulnerable families and adults, he said.

“Poverty reduction is the key to economic success.”

When increasing income, the money will be spent immediately in the local economy because people are out buying the necessities they need.

Novick called this idea “smart economics.”

System restructuring also needs to be done in areas such as the labour market and social assistance, he said.

Novick said raising minimum wage doesn’t eliminate jobs, but rather “changes bad jobs into good jobs.”

The government also has to look at the gap between income and social assistance, he said.

Ontario has to commit itself to increasing the Ontario Child Benefit to $1,500 from $1,100 because social assistance “only pays for the living needs of adults,” said Novick, who would like to see the maximum federal child benefit payment raised to $5,200 from $3,300.

One of the two pennies cut from GST could easily have paid for the payment raise, with money left over to invest in child care, he said.

Employment insurance also needs restructuring, as only three of 10 workers are able to receive funds when going through the risk of unemployment, said Novick.

To make these changes, communities need to band together and request that action be taken, he said.

“Poverty reduction is our common responsibility, our collective responsibility.”

For more information on poverty reduction visit www.povertywatchontario.ca or www.25in5.ca.

Source

Too many B.C. children living below poverty

By Matt Pearce
November 25 2008

On Friday the statistics on child poverty in Canada came out and once again for the fifth year running, B.C. was the worst in Canada.

Twenty-two per cent of our non-reserve children live below the poverty line as compared with the Canadian average of 16 per cent. This year’s statistics reflect 2006 conditions when the economy was running hot, so we can expect similar if not worse numbers now.

Coincidentally, we dropped to last the year that our current provincial government took power and made sweeping cuts to all services to children, including child and family services and public education.
Why should we be concerned? Children living in poverty drop out of school much more often, get involved with the justice and correctional system earlier and have poorer health outcomes throughout their lives. In short, they cost our society many times more than reducing child poverty would cost us.

The current ideologically driven government policies such as keeping the minimum wage down and reducing social assistance is a bit like paying off the mortgage while letting the roof rot and the foundation fail. The nearly 200,000 children living in poverty now in B.C. could be part of our positive future if we chose elected officials who could see past the next financial report card.
— Matt Pearce
Prince George

Source

The connection between mental illness and homelessness

Poverty in Canada is Very Real and Rising

Canadians using food banks at record levels

Published in: on November 28, 2008 at 5:22 am  Comments Off on ONTARIO IS THE CHILD POVERTY CENTRE OF CANADA  
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China: Official warns environmental pollution no longer acceptable

November  27 2008

BEIJING

China’s environmental protection chief has warned local governments that pollution in the name of economic growth is no longer tolerable.

“At the primary stage of socialism, slowing or halting economic development for environmental protection is not acceptable. But pollution is not acceptable too,” Environmental Protection Minister Zhou Shengxian was quoted by Thursday’s People’s Daily assaying.

In Yunnan Province to discuss the arsenic pollution of Yangzonghai Lake, Zhou asked officials: “What’s the point of development if we developed economy and improved people’s living standard, but people had to suffer from environmental pollution and degradation?

“If people have to drink polluted water while driving BMWs, that’s a bitter irony of modernization,” he said. “We definitely don’t want such development.”

Describing the contamination as an “evil consequence of sacrificing the environment for temporary local interest”, Zhou told officials to learn from the incident, according to the paper.

“China has made significant achievements since it started economic reform 30 years ago,” Zhou said. “But no one can deny that we have paid a big environmental and resource price for the fast development.”

Yangzonghai Lake, famous for its springs, was found to contain arsenic in June in the Yuxi City section. A local company named Jinye Industry and Trade Co. Ltd. was blamed for the pollution.

Zhou said the company, since it was opened three and half years ago, had paid 10 million yuan (1.5 million U.S. dollar) in taxes, but “its pollution cost billions and affected the lives of 26,000 people”.

Three company executives were arrested and 12 government officials fired in connection with the contamination. The city has invited bidders globally to clean up the pollution. The lake water is expected to be safe within three years.

Compared with the pollution in Yangzonghai, a small lake, the condition of the Yangtze and Yellow rivers and other big lakes was more worrisome, Zhou said.

“They were surrounded by many chemical factories and smelters,” he added.

Zhou said the core principle of the Scientific Concept of Development, promoted by the government, was “people first”. “Its basic requirement is to cherish life.”

A monitoring report in September showed that surface water in China generally suffered from medium pollution. About 26.7 percent of 759 samples of surface water were graded “V”, the worst level of pollution.

Source

Published in: on November 28, 2008 at 3:45 am  Comments Off on China: Official warns environmental pollution no longer acceptable  
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Students bring awareness to Congo

Day of Action, November 27 2008

by Jillian Steger
News Writer

November 25 2008

There is an unparalleled humanitarian crisis in the Democratic Republic of the Congo (DRC) today. Five UBC students are taking a stand and have created the Africa Canada Accountability Coalition. Their goal is to call students to action. I spoke with Annabel Wong, one of the founding students of the operation.

J: What was it that interested you in this cause?
Annabel: It was because of this course I’m taking, POLI 360 Security Studies. For a project we were doing I chose to study the DRC and now I question why we don’t hear more about it. The first and second Congo Wars killed approximately five million people and it’s basically World War Three. It involves a regional dynamic. Each of us is a participant in this war, mainly those of us who own cell phones. As part of the larger problem we think we are learning world history when we are mostly learning about Western Europe. Also conflict erupted as we were doing our proposal so I found that we have the responsibility to do something.

J: What has your coalition established so far?
A: We have been talking to MPs. We have established a letter with three points we want the Canadian Government to address. We have been in contact with MPs in the Democratic Republic of the Congo area and Peter MacKay. We have been talking to Philip Lancaster, who was Romeo Dallaire’s right hand man, about the realities on the ground. We have been talking to professors and a lot of NGO’S. And we have our petition up so sign it!

J: Tell me generally about what your coalition hopes to establish.
A: In our letter we have established three points which are humanitarian aid; basically increasing CIDA’s funding, training personnel about sexual violence and ending the misdoings of Canadian companies in the region.

J: Are women’s issues important in this conflict? What is the connection between rape and the conflict?
A: I believe the situation in the DRC has incited the UN to declare rape a weapon of war. You really have to think about what that means. It’s not just a matter of semantics. It’s impactful to me that humans are used for sex and then they’re further stripped of their dignity. The rapists of a lot of women put a gun in their vagina in a way that they don’t die. I think that this is trying to send a message of threat. All forms of sexual violence can be found in this conflict. I think that’s so unfair.

J: What can UBC students do to support your cause?
A: Sign our petition and join our Facebook group. Talk to your politicians, friends and politician friends. Come out to our day of action on Thursday November 27 at 10:55am outside the SUB.

Source
I think this is wonderful that students, take the time to build awareness to this crisis.

Every Voice makes a difference.

Human crisis overwhelms Congo rebels – seasoned fighters have no idea how to govern

Doctors Without Boarders Providing Assistance in North Kivu, DRC

Sierra Leone: A mission for MSF(Doctors Without Borders)

How the mobile phone in your pocket is helping to pay for the civil war in Congo

3,000 more peacekeepers needed in Congo: UN chief

Congo ‘worst place’ to be woman or child

A Few of the World’s most polluted places

Ten Most Polluted Places Named

Untreated sewage and mercury-contaminated sludge flow into a water system at Sumgayit, See a map of Azerbaijan.)

A major industrial center of the former Soviet Union and erstwhile home to more than 40 chemical factories, Sumagayit was recently named one of the ten most polluted cities in the world by the nonprofit Blacksmith Institute.

At their peak of production, the town’s factories released as much as 120,000 tons of harmful emissions annually, exposing workers and residents to high levels of contaminants, the institute said.

A study conducted by the Azerbaijani government and the UN revealed that cancer rates in Sumgayit are 22 to 51 percent higher than in rest of the country.

Ten Most Polluted Places Named

Workers dump waste at Vapi, a town in western India that marks the southern end of the country’s “Golden Corridor”a 400-kilometer (245-mile) stretch of industrial sites that manufacture petrochemicals, pesticides, dyes, paints, and fertilizers. (See a map of India.)

A survey by the Indian government revealed that the sites lack a proper system for disposing of industrial waste, which often contains high levels of heavy metals and cyanide, among other contaminants.

A new list issued by the nonprofit Blacksmith Institute places Vapi in the top ten of the most polluted regions in the world.

Vapi’s distance from sources of clean water has forced residents to consume the town’s contaminated water, the institute said.

As a result, incidences of respiratory diseases, carcinoma, skin and throat cancers, birth defects, and infertility are high in Vapi, the nonprofit added.

Ten Most Polluted Places Named

A doctor holds a newborn in Dzerzhinsk, Russia, in 1997. (See a map of Russia.)

The city, once the country’s Cold War headquarters for producing chemical weapons, was recently added to the Blacksmith Institute’s list of the world’s ten most polluted places.

Dzerzhinsk remains an important hub of chemical manufacturing.

Babies born here have birth defects at three times the national rate, the institute said on its Web site. A quarter of these babies will likely grow up and work in factories that still spew toxic chemicals, it added.

Dzerzhinsk’s average life expectancy is 42 years for men, well below the national average of about 58.

No major initiative to combat the pollution and health problems is underway, according to the New York-based institute.

Ten Most Polluted Places Named

Men search for metal at an abandoned lead mine in Kabwe, Zambia, the country’s second largest city, in this undated photo. (See a map of Zambia.)

Decades of unregulated lead mining have led to widespread poisoning in residents exposed to soil and water.

The New York-based Blacksmith Institute added the city to its list of the ten most polluted places for 2007.

Blood lead levels in children, who often bathe in contaminated water and play in the soil, are high enough to be potentially fatal, the institute reported on its Web site.

Although a local nonprofit educates families about avoiding lead exposure, entire communities may have to relocate, the institute said.

Ten Most Polluted Places Named

A cemetery of radioactive vehicles is seen near Ukraine‘s Chernobyl nuclear power plant in this November 10, 2000 photo. (See a map of Ukraine.)

More than 1,300 Soviet military helicopters, buses, bulldozers, and other equipment were used and contaminated while responding to the April 26, 1986 nuclear accident at Chernobyl.

The disaster’s residual effects and its potential for future environmental and health damage has landed Chernobyl on the New York-based Blacksmith Institute’s 2007 list of the ten most polluted sites.

A hundred times more radiation was released during the meltdown of Chernobyl’s reactor than was contained in the atomic bombs dropped on Hiroshima and Nagasaki.

The event created a spike in thyroid cancers among children and led to innumerable respiratory ailments, infertility cases, and birth defects in local residents.

Today a 19-mile (31-kilometer) exclusion zone around the reactor remains largely deserted.

Ten Most Polluted Places Named

Women work at an open chromite mine at Sukinda, in the eastern Indian state of Orissa, in this undated photo. (See a map of India.)

The Sukinda valley contains 97 percent of the country’s deposits of chromite a source of chromium and is the site of one of the largest open-cast chromite ore mines in the world.

A list issued by the nonprofit Blacksmith Institute cites the region as one of the most polluted in the world.

Twelve mines operate in Sukinda, generating about 30 million tons of waste rock and contaminating more than 60 percent of the water resources with hexavalent chromium, a known carcinogen, the institute said on its Web site.

A state government study has also indicated that 85 percent of the deaths in the mining areas and nearby villages are due to chromite-mine related diseases.

The government reportedly stated that the situation in Sukinda “is unique, it is gigantic, and it is beyond the means and purview of the [Orissa Pollution Control] Board to solve the problem.”

Ten Most Polluted Places Named

Cars inch through the smog-filled city center of Linfen, China, on July 7, 2007. (See a map of China.)

The city is listed among the world’s ten most polluted places of 2007, according to the New York-based nonprofit Blacksmith Institute.

Linfen sits at the center of China’s prodigious coal industry, which is largely unregulated by the government. Residents describe choking on coal dust, and local health clinics have reported an upsurge in bronchitis, pneumonia, and lung cancer, according to the institute.

“The one thing that blew me away was in Linfen, three million people are affected by air pollution,” said William Suk, acting deputy director of the National Institute of Environmental Health Sciences.

“People assume a lot of these sites are in the middle of nowhere, but they’re not.”

By the end of 2007, Linfen plans to shut down 57 of its 153 coal-producing plants, to be replaced with cleaner, regulated facilities, the institute’s Web site reported.

Ten Most Polluted Places Named

Russia‘s northernmost major city, Noril’sk pumps out more than two million tons of pollutants a year making it one of the ten most polluted spots in the world, according to the New York-based nonprofit Blacksmith Institute. (See a map of Russia.)

Mining and smelting began in Noril’sk in the 1930s, and the city now houses the world’s largest smelting complex for heavy metals.

Snow is often blackened with pollution, the air tastes of sulfur, and the life expectancy is up to ten years lower than the Russian average, the institute reported.

Noril’sk Nickel, the major firm operating in the town, says it has invested millions in its dust and gas recovery and removal systems, according to the institute.

Ten Most Polluted Places Named

September 18, 2007Two girls walk to school amid smoky skies in La Oroya, Peru, in this September 2003 photo. (See a map of Peru.)

The congested mining town of 35,000 nestled high in the Andes was recently added to the Blacksmith Institute’s list of the ten most polluted places in the world.

A metal smelter run by the Missouri-based Doe Run Corporation has operated in the remote settlement since 1922.

Exposure to the smelter’s pollution has led to dangerously high blood lead levels in nearly all of La Oroya’s children, according to the New York-based institute.

Lung ailments are widespread, and high numbers of premature death have been linked to the smelter’s emissions, the nonprofit reports on its Web site.

Likewise, acid rain from sulfur dioxide pollution has destroyed much of the vegetation in the area.

Doe Run says it has invested approximately 1 million U.S. dollars a year in a joint program with the Peruvian Ministry of Health to lower blood lead levels in the region.

The Blacksmith Institute, which collaborates with local agencies to fight pollution worldwide, compiled its annual list of the most polluted places through a nomination process.

The entries were then reviewed by a technical advisory board of medical and environmental experts.

William Suk, acting deputy director of the National Institute of Environmental Health Sciences, was not involved in the report.

“What the [Blacksmith Institute] has done is a good thing,” Suk told National Geographic News.

“They are trying to bring to the attention of the world that these sites exist.”

Source

U.N. report warns toxic brown haze has devastating effect

November 14 2008

A satellite image shows a dense blanket of polluted air over central-eastern China, covering the coastline around Shanghai. The "Asian brown cloud" is a toxic mix of ash, acids and airborne particles from car and factory emissions, as well as from low-tech polluters like wood-burning stoves. </p> <p>A satellite image shows a dense blanket of polluted air over central-eastern China, covering the coastline around Shanghai. The

BEIJING

A noxious cocktail of soot, smog and toxic chemicals is blotting out the sun, fouling the lungs of millions of people and altering weather patterns in large parts of Asia, according to a report released Thursday by the United Nations.

The byproduct of automobiles, slash-and-burn agriculture, cooking on dung or wood fires, and coal-fired power plants, these plumes rise over southern Africa, the Amazon basin and North America.

But they are most pronounced in Asia, where so-called atmospheric brown clouds are reducing sunlight in many Chinese cities and leading to decreased crop yields in swaths of rural India, say a team of more than a dozen scientists who have been studying the problem since 2002.

“The imperative to act has never been clearer,” said Achim Steiner, executive director of the U.N. Environment Program, in Beijing, identified as one of the world’s most polluted cities and where the report was released.

The brownish haze, sometimes in a layer more than a mile thick and visible from airplanes, stretches from the Arabian peninsula to the Yellow Sea. During the spring, it sweeps past North and South Korea and Japan. Sometimes the cloud drifts as far east as California. The report identified 13 cities as brown-cloud hot spots, among them Bangkok, Thailand; Cairo, Egypt; New Delhi; Seoul, South Korea; and Tehran, Iran.

It was issued on a day when Beijing’s own famously polluted skies were unusually clear. On Wednesday, by contrast, the capital was shrouded in a thick, throat-stinging haze that is the byproduct of heavy industry, coal-burning home heaters and the 3.5 million cars that clog the city’s roads.

Last month, the government reintroduced some of the traffic restrictions that were imposed on Beijing during the Olympics; the rules forced private cars to stay off the road one day a week and sidelined 30 percent of government vehicles on any given day. Overall, officials say the new measures have removed 800,000 cars from the roads.

According to the U.N. report, smog blocks from 10 percent to 25 percent of the sunlight that should be reaching the city’s streets. The report also singled out the southern city of Guangzhou, where soot and dust have dimmed natural light by 20 percent since the 1970s.

In fact, the scientists who worked on the report said the blanket of haze might be temporarily offsetting some warming from the simultaneous buildup of greenhouse gases by reflecting solar energy away from the earth. Greenhouse gases, by contrast, tend to trap the warmth of the sun and lead to a rise in ocean temperatures.

“All of this points to an even greater and urgent need to take on emissions across the planet,” Steiner said.

Climate scientists say similar plumes from industrialization of wealthy countries after World War II probably blunted global warming through the 1970s. Pollution laws removed that pall.

Rain can cleanse the skies, but some of the black grime that falls to earth ends up on the surface of the Himalayan glaciers that are the source of water for billions of people in China, India and Pakistan. As a result, the glaciers that feed into the Yangtze, Ganges, Indus and Yellow rivers are absorbing more sunlight and melting more rapidly, researchers say.

According to the Chinese Academy of Sciences, these glaciers have shrunk by 5 percent since the 1950s and, at the current rate of retreat, could shrink by 75 percent by 2050.

“We used to think of this brown cloud as a regional problem, but now we realize its impact is much greater,” said Veerabhadran Ramanathan, who led the U.N. scientific panel. “When we see the smog one day and not the next, it just means it’s blown somewhere else.”

Although the clouds’ overall impact is not entirely understood, Ramanathan, a professor of climate and ocean sciences at the University of California, San Diego, said they might be affecting precipitation in parts of India and Southeast Asia, where monsoon rainfall has been decreasing in recent decades, and central China, where devastating floods have become more frequent.

He said some studies suggested the plumes of soot that blot out the sun have led to a 5 percent decline in the growth rate of rice harvests across Asia since the 1960s.

For those who breathe the toxic mix, the impact can be deadly. Henning Rodhe, a professor of chemical meteorology at Stockholm University, estimates 340,000 people in China and India die each year from cardiovascular and respiratory diseases that can be traced to the emissions from coal-burning factories, diesel trucks and kitchen stoves fueled by firewood.

Source

CO2

By Paul Eccleston
November 14  2007

Australians are the world’s worst polluters, according to a new ‘name and shame’ league table based on power station emissions.

Each Australian produces 11 tonnes of CO2 power sector emissions each year on a per capita basis. The United States comes second in the table on nine tonnes per person Britain is ranked 9th at 3.5 tonnes per person.

The findings are revealed in a huge survey of the CO2 emissions from 50,000 power plants worldwide by the Centre for Global Development (CGD) an independent think-tanked based in the US.

The on-line Carbon Monitoring for Action (CARMA) database shows where the worst power station culprits are, who owns them and how much of the greenhouse gas they are pumping into the atmosphere.

It includes 4,000 power companies, and nearly 200,000 geographic regions in every country on earth. Visitors to the site can view carbon emissions data for the year 2000, the present, and future plans.

Power stations are the planet’s most concentrated source of greenhouse gases – one of the main factors in global arming – producing nearly 10 billion tons of CO 2 per year. The US, with over 8,000 power plants, accounts for about 25 per cent of the total or 2.8 billion tons.

Although the developing nations are among the worst offenders they have a far lower per capita rate. The average Chinese citizen produces two tonnes of CO2 from power generation annually while Indians only about half of one tonne per person.

Although no single country comes close to the 2.8 billion tons of CO 2 produced annually by the US power sector, other countries collectively account for three-quarters of all the power-related CO2 emissions.

China comes second with 2.7 billion tonnes, followed by Russia with 661m tonnes; India 583m tonnes; Japan 400m tonnes, Germany 356m tonnes, Australia 226m tonnes, South Africa 222m tonnes, the UK 212m tonnes and South Korea 185m tonnes.

Power generation accounts for about one-quarter of total emissions of CO2. Through the website people concerned about climate change can check on the emissions of their local power station.

CARMA was set up to help the drive towards less carbon-intensive power generation and reducing global warming which will hit poor people in developing countries the hardest.

The man who led the research, David Wheeler, a senior fellow at CGD, said: “CARMA makes information about power-related CO2 emissions transparent to people throughout the world. Information leads to action. We know that this works for other forms of pollution and we believe it can work for greenhouse gas emissions, too.

“We expect that institutional and private investors, insurers, lenders, environmental and consumer groups and individual activists will use the CARMA data to encourage power companies to burn less coal and oil and to shift to renewable power sources, such as wind and solar.”

Statistics for the UK show it has the 9th highest CO2-emitting power sector at 212,000,000 tonnes of CO2.

The Drax power station in Selby, Yorkshire is named as the biggest UK polluter producing 23,700,000 tonnes of CO2 annually making it the 23rd most polluting power station in the world.

It is followed in the UK by Longannet in Alloa, Scotland at 15,700,000 tonnes; Ratcliffe in the East Midlands at 12,800,000 tonnes; Fiddlers Ferry in the North West at 12,300,000 tonnes; and Cottam in the East Midlands at 12,300,000 tonnes.

The world’s worst pollution power plant is Taichung in the city of Lung-Ching in Taiwan which pumps out 41.3m tonnes of CO2 per year.

Taiwan and China have four of the top six worst polluting power plants

Source

100 dirtiest power stations in the UK
25 dirtiest power stations in the world

World’s 10 Worst Pollution Spots

NEW YORK, New York, October 18, 2006 (ENS)
The world’s 10 most polluted places threaten the health of more than 10 million people in eight countries, according to a report released today by a U.S. environmental action group. Three of the most polluted sites are in Russia, the report said, with the remaining seven located in China, Dominican Republic, India, Kyrgyzstan, Peru, Ukraine and Zambia.

The report was released by the Blacksmith Institute and compiled by a team of international environment and health experts, including researchers from Johns Hopkins University, Mt. Sinai Medical Center and City University of New York.

“A key criterion in the selection process was the nature of the pollutant,” said Richard Fuller, director of Blacksmith Institute. “The biggest culprits are heavy metals – such as lead, chromium and mercury – and long-lasting chemicals – such as the `persistent organic pollutants.’ That’s because a particular concern of all these cases is the accumulating and long lasting burden building up in the environment and in the bodies of the people most directly affected.”

scavenge
Children scavenging a mine in Kabwe, Zambia, one of the sites on the list. (Photo courtesy Blacksmith Institute)
With the exception of Chernobyl, the Ukranian site of the world’s worst nuclear disaster, most of the locations on the list are little-known – even in their own countries.

The most-polluted sites primarily affect communities deep in poverty, the report said, but there are potential remedies.

“Problems like this have been solved over the years in the developed world, and we have the capacity and the technology to spread our experience to our afflicted neighbors,” the report said.

The list includes:

  • the Chinese city of Linfen, located in the heat of the country’s coal region and chosen as an example of the severe pollution faced by many Chinese cities;
  • Haina, Dominican Republic, the site of a former automobile battery recycling smelter where residents suffer from widespread lead poisoning;
  • the Indian city of Ranipet, where some 3.5 million people are affected by tannery waste, which contains hexavalent chromium and azodyes.
  • Mailuu-Suu, Kyrgyzstan, home to a former Soviet uranium plant and severely contaminated with radioactive uranium mine wastes;
  • the Peruvian mining town of La Oroya, where residents have been exposed to toxic emissions from a poly-metallic smelter;
  • Dzerzinsk, Russia, the site of a Cold War-era chemical weapons facility;kid
    A child stands on a battery casing in the Dominican Republic. The world’s most polluted sites all impact very poor communities. (Photo courtesy Blacksmith Institute)
  • the Russian industrial city of Norilsk, which houses the world’s largest heavy metals smelting complex and where more than 4 million tons of cadmium, copper, lead, nickel, arsenic, selenium and zinc emissions are released annually;
  • the Russian Far East towns of Dalnegorsk and Rudnaya Pristan, whose residents suffer from serious lead poisoning from an old smelter and the unsafe transport of lead concentrate from the local lead mining site;
  • and the city of Kabwe, Zambia, where mining and smelting operations have led to widespread lead and cadmium contamination.

“Living in a town with serious pollution is like living under a death sentence,” the report said. “If the damage does not come from immediate poisoning, then cancers, lung infections, mental retardation, are likely outcomes.”

The report warns that there are some towns where life expectancy approaches medieval rates, where birth defects are the norm not the exception.”

“In other places children’s asthma rates are measured above 90 percent, or mental retardation is endemic,” it said. “In these places, life expectancy may be half that of the richest nations. The great suffering of these communities compounds the tragedy of so few years on earth.”

Blacksmith said it plans to circulate the report extensively to development agencies and local governments, working to place clean-up on the policy agenda in their respective countries and to initiate fundraising to help these regions.

tannery

Tannery runoff in India is polluting the water supply of some 3.5 million people. (Photo courtesy Blacksmith Institute)

“The most important thing is to achieve some practical progress in dealing with these polluted places,” says Dave Hanrahan, Blacksmith Institute’s chief of global operations. “There is a lot of good work being done in understanding the problems and in identifying possible approaches. Our goal is to instill a sense of urgency about tackling these priority sites.”

“This initial Worst-Polluted Places list is a starting point,” Hanrahan added. “We are looking to the international community and local specialists for feedback on the selection process and on our list. We want to make sure that the key dangerously polluted sites get the needed attention and support from the international community in order to remediate them.”

Source

Pollution Reports including Top 100 Corporate Air Polluters 2007 in US

Alberta Oil Sands a Pollution Nightmare

Privatization, Pollution and Free Trade, WTO

Watch this new 11-min short documentary, “Rivers at Risk: Glacier & Howser Creeks,” by POWERPLAY producer Damien Gillis on the battle to protect a treasured piece of Kootenay wilderness from private power development.

This video is the second installment in Save Our Rivers Society’s new “Rivers at Risk” series, which profiles different rivers around BC threatened by private power development – told in the words of the local citizens batting to protect them.  Featuring stunning high definition footage of this spectacular BC wilderness, revered by outdoor enthusiasts.

Watch video – high resolution
Having trouble streaming the high-res version?  Watch video – medium resolution

Five pristine rivers around Duncan Lake – near Kaslo in the spectacular West Kootenays – are threatened by a 120 MW private river power proposal by Axor Corp.  The plan is to divert up to 90% of each of these rivers, including beloved Glacier and Howser Creeks, into a 4.5 metre-wide 16 KM tunnel to generate electricity and private profits for Axor Corp. and its investors.  As the water will never return to the original creeks from which it is diverted (instead dumping it into the Lake below) this cannot be rightly called “run of river” power.

The impacts on the local environment – including further degradation from the 25 roads and 250,000 cubic metres of waste-rock muck generated by project – will further endanger resident blue-listed bull trout and other important ecological values.

One of the most environmentally troubling aspects of the proposal is the plan to get the power out of the valley by way of a 100 metre-wide 91KM transmission corridor carved out of old growth forests through the pristine Purcell mountain range.  But perhaps opponents’ biggest concern is the erosion of democratic values and loss of public control over our resources, especially our watersheds.

In a time of climate change and shrinking natural resources, it’s imperative that we hang onto our water and energy security – two values that are directly undermined by the BC Liberal government’s secretive agenda to privatize our rivers and public power system under the false guise of “energy self-sufficiency” and “green power.”  As this video and the situation around the Glacier/Howser proposal illustrate, there is nothing in this private river power scheme that benefits the public or the environment.

Source

Privatization also drives up the cost for consumers. Have to pay owners and dividends to investors.

This of course drives up the price of hydro. We all remember Enron Right?

There are other companies like Enron out there and who wants to be stuck with that.

What private Corporations do to land is everyone’s concern.

Environmental concerns are extremely important.

Here is a report about Free Trade and how it has affected a few things.

NAFTA rights arising from private sector hydroelectric generation in British Columbia

By Wendy R. Holm P.Ag.

Friday, 26 September 2008

It is a commonly held belief that the greatest risks to Canada’s water resources under NAFTA are related to exports. In fact, the more immediate area of public policy concern is not water exports but water use in Canada by firms that are American or have US investors.

Private sector firms issued water licenses by government – be it for hydroelectric generation or for snowmaking – hold NAFTA rights far superior to any rights held by Canadians if those firms are American or have American investors.

Investment Provisions of the NAFTA

Investor rights – which trump conflicting provincial legislation – include the right to national treatment and compensation for losses to investment, profits, markets and goodwill if those rights are expropriated by the Government of Canada or any province

For many years, I and others have held up Alberta’s oil patch as the clearest example of water rights arising from domestic takings. Whether by water flooding (conventional oil and gas drilling) or by deep steam injection (extracting bitumen from the oil sands), water used by US firms (or firms with American investors) for energy extraction in Alberta’s oil patch is covered by NAFTA.

In a paper published in The University of Toronto Faculty of Law Review March 9, 2007, Joseph Cumming and Robert Froehlich examine in detail the effect of NAFTA on Alberta’s ability to use regulation as a public policy measures to protect its water resources.

Assuming a cutback in water use due to extended drought mandated under the Alberta Water Act, the authors present a case law review of relevant NAFTA Chapter XI Tribunals (Ethyl Corporation, SunBelt, Pope and Talbot, Metalclad, SD Meyers and Methanex) then go on to look at the success of a potential compensation claim by American firms whose investments in energy extraction suffer as a result of reduced access to the province’s water resources. Their conclusion:

“… the Government of Alberta, and therefore the Government of Canada, may face difficult financial consequences if the Director suspends or cancels a water license for environmental protection purposes. There are strong arguments available to a US investor that support the position that a cancellation or suspension of a water license is an indirect expropriation, or a measure tantamount to an expropriation, thereby resulting in substantial compensation being payable. In the case of an oil sands operation that is shut down as a result of a loss of its water license… a successful Chapter XI claim could be exceptionally high. Consider the loss of capital expenditures, the nullification of past expenditures, and the lost marketability of the future oil production.”

And while Canada could attempt to “settle” such suits before they reach a NAFTA panel, this “may allow environmental legislation and regulation to survive, but would do so at a tremendous cost” requiring Canada to, in effect, “purchase its environmental sovereignty by settling its way out of Chapter XI claims.”

Arguing the presence of external pressure by foreign investors undoubtedly constrains Canada’s ability to enforce its environmental policy, the authors go on to note:

“the implications for Canadian environmental sovereignty in this circumstance are clear. A private investor could essential force the hand of a Canadian legislative body. A US investor, who is not accountable to the Canadian public and who may have no concern for the Canadian environment, could potentially influence how internal Canadian environmental policy and legislation is treated. As a result of the potential for a significant compensation award to be issued, a single US investor, through the threat of use of a Chapter XI claim, may be able to cause Canadian legislation to be altered or even repealed.”

To read the full review, click on this link: Cumming, Joseph and Robert Froehlich. NAFTA Chapter XI and Canada’s Environmental Sovereignty: Investment Flows, Article 1110 and Alberta’s Water Act, The University of Toronto Faculty of Law Review March 9, 2007.

It also contains a few cases, previously litigated. Very enlightening indeed.


Implications of NAFTA Investment Provisions on Hydro Privatization in BC

There is no difference between water used for bitumen extraction, water used for hydroelectric production, or water used to make snow for a ski hill. When the entity holding rights to Canada’s water is American or has American investors, all such takings are covered by NAFTA.

NAFTA investment defenses would trump (and, experts fear, eventually influence the direction of) provincial and federal environmental laws. Even when water licenses are reduced or canceled on a non-discriminatory basis, for a public purpose, and pursuant to provincial legislation, they give rise to NAFTA claims for compensation under Chapter 11.

The result is an erosion of Canadian policy sovereignty and a denigration of the rights of Canadian communities vis a vis foreign investors.

This risk is unacceptably high when the commodity in question is water.

Source

This affects all countries not just Canada, but this is a good example of things that have and are being done around the world.

Water is also used in mining operations. Contamination from mining is quite devastating.

Many of the problems with Free Trade is also applied to air pollution.

If a Government tries to stop air pollution the Corporations can also sue for lost profits and probably win.

However are we to stop climate change, as long as Trade agreements do nothing to protect the environment?

Read the Review and think about the implications to water and air pollution.

Moving and entire water way is not something we should allow. It would destroy the eco system around it.

Are one of these companies in your neighborhood?

Many are in other countries around the world and they pollute there as well as in the US.

Pollution Reports including Top 100 Corporate Air Polluters 2007 in US

Hugo Chavez wins Venezuela election

November 25 2008

By Redmond O’Neill

With all of the votes officially counted the results of Venezuela’s regional and municipal elections on November 23 are clear and of some interest.

Hugo Chavez’s United Socialist Party of Venuezuela won 17 states and a large majority of the national vote. The opposition won five states and the mayoralty of capital Caracas.

Contrary to the dire predictions in some sections of the British and US media, both the president and opposition accepted the results with good grace. This confirms the meticulous respect for democracy, confirmed in the latest survey by the widely respected Latinbarometro, which found that satisfaction with democracy in Venezuela is the second highest in Latin America.

However, the elections illustrated two new aspects of Venezuela’s political landscape. First, in the country as a whole, Chavez gained a large margin of support over the opposition, of around 1m additional votes or roughly 20%.

That is a dramatic shift in comparison to the referendum on constitutional reform last year, which Chavez lost by roughly 1%. This suggests that, while Venezuelans rejected some of the proposed constitutional changes, Chavez retains broad overall majority support. No doubt this is due to the way his government has given the majority of the people access to free education for the first time, eradicated illiteracy, massively expanded access to free education at every level and raised the living standards of the impoverished majority.

At the same time, the opposition won Caracas and the interlocking state of Miranda, the main oil-producing state Zulia, and Carabobo, an important industrial region. These are the three biggest urban regions in the country.

The loss of Caracas, in particular, is a symptom of the acute problems of massive shanty towns, crime, traffic congestion, waste and inadequate public transport, which are now primary concerns of people in the big cities.

There can be little confidence that the opposition has any answers to these problems, as their policies of plundering national resources for the benefit of a tiny minority created this situation of urban decay in the first place.

Under the old regime, continued in the key backers of today’s opposition, Venezuela started 1950 with an average income that was nearly three times that of the main eight Latin American countries. By the time Chavez came to power, this lead had almost been eliminated by policies that gave Venezuela a rate of growth less than a quarter of the average of those eight countries for 48 years.

Once he tackled those controlling the national oil company in 2003 and was able to put its resources to productive use, Chavez achieved a sustained rate of economic growth outstripping that of most of Latin America and he put these resources to use tackling the most acute issues of poverty, health and education.

These elections show that Chavez now faces a more specific but equally imperative challenge, that of radically improving the infrastructure, and with it, the efficiency and quality of life in the country’s main cities.

What has been achieved so quickly, with such success, in the fields of health and education gives some confidence that this can be achieved, but only if the government takes on these issues with the same single-minded commitment.

Source

Published in: on November 27, 2008 at 12:23 am  Comments Off on Hugo Chavez wins Venezuela election  
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Latin Americas Private Pension Funds in Doubt

By Marcela Valente

November 26 2008

BUENOS AIRES

Pension funds in Latin America have suffered sometimes drastic losses as a result of the global financial crisis. Argentina decided to nationalise its private pension funds, and in Chile, Colombia and Mexico there are voices urgently calling for reforms.

Many of the private sector pension plans, created mainly in the 1990s under the influence of neoliberal, free-market reforms and structural adjustment policies, followed the model adopted in 1981 by the dictatorship of Augusto Pinochet (1973-1990) in Chile.

In 1993, Argentina adapted the model, without eliminating the parallel public system, which allowed workers to choose either one. But on Nov. 20, the Argentine parliament eliminated the private pension funds, which were in a state of collapse.

It is not yet clear how the financial crisis will affect private pension funds in Bolivia, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Mexico, Peru and Uruguay.

According to the International Association of Latin American Pension Fund Supervisors (AIOS), the 10 Latin American countries that make up the association had 76 million pension fund affiliates as of late 2007, but only 32 million — 37 percent of the economically active population — made regular payments.

The largest number of members of private pension plans — 39 million — were in Mexico. This was followed by 9.5 million in Argentina (who will now go into the public social security system), and by Chile and Colombia, with around eight million each.

The AIOS reported that in late 2007, private pension funds in the region held 275 billion dollars, equivalent to 16 percent of the 10 member countries’ GDP.

“We are going to keep a close eye on what happens in Chile, the pioneer of the model,” said Jorge D’Angelo, chairman of the Inter-American Conference on Social Security’s (CISS) commission on the elderly. “We’ll have to see how bad the crisis gets, and whether Chile will be able to weather the storm,” he told IPS.

In Chile, which has the highest proportion of retirees in private pension plans in the region, the average monthly pension stands at 264 dollars, just over the minimum monthly wage. In the rest of the countries, pensioners draw even more meagre amounts. In Chile, the Central Unitaria de Trabajadores (CUT) central trade union and citizen, social and political groups are demanding alternatives to the private pension funds. CUT is calling for a public social security system based on the principle of solidarity.

Senator Alejandro Navarro, who recently left the co-governing Socialist Party, is pushing for the creation of a public administrator of individual retirement accounts.

Between Oct. 31, 2007 and Oct. 31, 2008, Chile’s private pension fund assets shrank from 94.3 to 69.1 billion dollars.

In 2002, the private pension administrators created five different funds, classified as A, B, C, D and E, ranging from high to low risk, for workers to choose from. So far this year, profit margins have shrunk by 40.9 percent in the A funds, 30.1 percent in the B funds, and 18.6 percent in the C funds, to mention the sharpest falls.

And since the creation of Chile’s multi-fund system in 2002, returns have ranged between 2.8 and 4.2 percent, depending on the level of risk exposure. But if measured since 1981, returns have averaged 8.8 percent

“The worries of workers are logical and understandable,” Fabio Bertranou, a Chilean expert on social security with the International Labour Organisation (ILO), told IPS. “The value of the funds has shrunk due to the sharp drop in the value of their financial assets.”

Chile accounts for 35 percent of the region’s private pension fund assets that are invested in equities abroad.

“It is difficult to predict how long it will take for the value of the assets to rally,” admitted Bertranou. “We have to issue a call for reflection and reassess how individual retirement savings accounts work during times of crisis, in order to take the necessary precautions. There isn’t a great deal of experience in the matter.”

Early this year, the Chilean government passed a new law that created a system built on three pillars: a pay-as-you-go guaranteed minimum pension funded with help from the government, a solidarity system, and voluntary individual savings.

The most notable aspect was the creation of the “basic solidarity pension” and the “solidarity pension contribution” for the poorest of the poor.

That reform “has taken a fundamental step towards the creation of a mixed social security system. The incorporation of the solidarity pension component will give workers, especially low-income workers, a more secure future,” said Bertranou.

In his view, “the decline in the value of pension funds is not the only problem. It is also necessary to address the drop in occupational coverage that will result from the economic slowdown, and the subsequent fall in income and job creation and stability.”

Uruguay’s system, unique in Latin America, seems to be the one least affected by the crisis so far.

Under the mixed or multi-pillar system, contributions and benefits are linked to both a state-managed pay-as-you-go system and privately managed individual retirement accounts. Workers contribute to each, depending on where they fall within a salary level band, and receive two pensions when they retire, with the exception of those who earn less than 715 dollars a month, who are not required to pay into an individual savings account.

Alongside the mandatory individual capitalisation system, the public sector maintains a basic minimum pension under the pay-as-you-go regime.

In the quarter that ended in September, private pension funds went down 2.6 percent, due to the drop in value of the debt bonds in which most of their assets are invested. But since the system began to operate in 1996, returns have ranged between nine and 11 percent, depending on the currency in which they are measured.

Nearly 38 percent of workers paying into private retirement accounts in Uruguay chose an administrator that is run by three state banks. By law, the pension fund administrators can only invest a limited amount of their assets abroad.

Pension fund returns depend partly on where the assets are invested. In some countries, a majority have been placed in equities in foreign companies that are now in crisis, while others are invested in public bonds, whose drop in value varies from country to country.

“In Argentina, the debate had become abstract, because the decline in the value of private funds was so steep that when beneficiaries were ready to retire, the state had to step in to help pay their pensions, since their savings were too small,” said D’Angelo.

According to the superintendency of private pension fund administrators (AFJPs) in Argentina, only 3.6 million of the 9.5 million members of the private system were actually making payments. And of the six million workers still affiliated with the public social security system, only two million were contributing.

In October, total AFJP assets plunged 17 percent with respect to the previous month. And the returns over the last year have reflected a loss of 25.4 percent — compared to an average annual profitability rate of 6.6 percent.

Given that situation, the government of Cristina Fernández proposed the creation of an integrated pensions system and the elimination of the private funds. Within less than a month, the new law made it through both houses of Congress, approved by the legislators of the governing Justicialista (Peronist) Party and some opposition lawmakers.

The drop in the value of the funds has also been drastic in Mexico, whose current pension system began to operate in 1996. According to the national commission of the retirement savings system, between May and October, the value of the individual retirement accounts of 39 million workers fell by 3.36 billion dollars.

The national union of social security workers is demanding that the Mexican Congress review the laws on private pension funds and intervene so that limits are set on the proportion of assets that can be put into high-risk equities abroad.

People in Colombia, where reforms incorporating a private pension system went into effect in 1994, are worried too. According to the Colombian association of pension fund administrators, losses climbed to more than 94 million dollars in the first six months of the year.

“We are much worse off than they are in Argentina,” Saúl Peña, president of the union of Colombia’s Social Security Institute workers, told IPS. “Our problems are more serious because of the low level of wages, the labour instability and the low profitability.”

There are currently 12,000 retirees in Colombia’s private pension system, and nearly all of them now draw a monthly pension equivalent to the minimum wage, he said. “The only thing that can be done now is to wait and see whether we will recover in the long-term, maybe in 2009, or 2010. It’s chance, it’s a gamble,” he said.

* With additional reporting from Daniela Estrada in Santiago and Helda Martínez in Bogotá.

Source

No Amnesty for Cheney , Say Torture Opponents


WASHINGTON

November 25 2008

Judging by the rare leaks from President-elect Barack Obama’s transition team, investigations and prosecutions of high-level George W. Bush administration officials for torture and war crimes are a distant prospect. But likely or not, that won’t stop pundits from debating the question of whether those officials responsible should be held accountable.

Irrespective of whether Vice President Dick Cheney, former Secretary of Defence Donald Rumsfeld or others are dragged before juries, one glaring change seems absolutely certain: Obama stands unequivocally against torture, and the practice is likely to come to an end under his administration.

“Even though I’ve been disappointed in other presidents in the past, I do listen and I do believe Obama when he says we won’t torture. I think that’s crucial,” said Michael Ratner, the president of the Centre for Constitutional Rights.

But foreswearing controversial and harsh interrogation methods may not be enough to permanently reestablish the moral high ground that the Obama administration has promised to bring back to the U.S.’s interactions with the rest of the world.

If Obama doesn’t take on torture that occurred, as opposed to simply discontinuing the practice, the door may be left open for future administrations to resurrect the harshest of interrogation techniques, said Ratner at a recent forum at Georgetown University Law School.

“If Obama really wants to make sure we don’t torture, he has to launch a criminal investigation,” said Ratner, the author of “The Trial of Donald Rumsfeld: A Prosecution in Book.”

He said that the targets of such an investigation would be the easily identifiable “key players” and “principals” in the Bush administration who hatched plans to allow and legally justify harsh interrogation methods that critics allege are torture, including the controversial “waterboarding” simulated drowning technique.

Those pursued, said Ratner, would include high-ranking administration officials such as Cheney, Rumsfeld, and former Central Intelligence Agency chief George Tenet, as well as the legal team that drummed up what is now regarded as a sloppy legal justification for torture.

Key Bush administration lawyers involved in providing legal cover to harsh practices, including the roundly criticised “torture memo” from the Justice Department’s Office of Legal Counsel (OLC), include former attorney general and earlier White House counsel Alberto Gonzales; Cheney’s chief of staff and former legal counsel to the vice president’s office David Addington; and the University of California, Berkeley law professor and former OLC lawyer John Yoo.

If the characters behind the questionable techniques are not held accountable for violating U.S. and international laws, said Ratner, presidents after Obama may simply say, “well, in the name of national security I can just redo what Obama just put in place. I can go torture again.”

Ratner also spoke to the concern that, from the view of the rest of the world, “to not do an investigation and prosecution gives the impression of impunity.”

But opposing Ratner on the dais, Stewart Taylor, Jr. argued that an investigation and prosecution were not appropriate.

“The people who are called ‘war criminals by [Ratner] and others do not think they acted with impunity,” said Taylor, a Brookings Institution fellow and frequent contributor to Newsweek and the National Journal.

In the Jul. 21 edition of Newsweek, Taylor called for Bush to preemptively pardon any administration official who could be held to account for torture or war crimes. Taylor’s rationale was that without fear of prosecution, a full and true account of what he called “dark deeds” could never come to light.

Furthermore, at the Georgetown Law event Taylor said investigation and eventual prosecution would “tear the country apart”.

That may be the thinking of Obama, who, in addition to hints he wouldn’t investigate Bush administration malfeasance, declared his intention to govern as a political reconciliation president in his election victory speech.

In Grant Park in Chicago on Nov. 4, Obama rehashed a quote from slain civil rights leader Martin Luther King, Jr., but instead of rhetorically bending the “arc of history” towards “justice”, as King did, Obama called for it to be bent “toward the hope of a better day.”

But Ratner said that the country was already divided, and that divide is exactly what a future administration could politically exploit to reinstate torture. He said that Obama must close the divide and doing so is not rehashing the past.

“You’re making sure that in the future, we don’t torture again,” Ratner said. “This is not looking backwards.”

Another potential problem with investigation and prosecution, says Taylor, is that the Bush administration officials ostensibly had sought to find out whether the methods they were about to approve were justified, and, indeed, they were told they were in the legal clear.

“There is no evidence that high ranking officials acted with criminal intent,” he said. “They were relying in good faith on the advice of legal counsel.”

Taylor said that since the legal advice originated from the Department of Justice, it would be wrong for the same Justice Department to “turn around” and prosecute people for actions that its previous incarnation had explicitly told were legal.

But Taylor’s point misses two issues: that the crimes were allegedly given a legal green light because of collusion with the White House, and that Ratner proposes to investigate those selfsame Justice officials who were involved in giving approval.

Despite referring to John Yoo as a “gonzo executive imperialist”, Taylor said that “those officials, like them or not, were honourably motivated” because they were “desperately afraid” of another terrorist attack.

Ratner insists that the officials, part of a “group, cabal or conspiracy”, may be culpable because they were “aiders and abetters”.

“[OLC] was not giving independent counsel,” insisted Ratner. “They were shaping memos to fit a policy that had already been determined.”

And while Taylor was quick to point out that many U.S. administrations had been accused of war crimes by various sources, Ratner replied that it was the first time that any administration had actually “assaulted the prohibition on torture”.

That could be one reason why, if the U.S. does not take care of its own house, Bush administration officials will likely be pursued on charges in Europe and elsewhere.

In international courts, said Ratner, those officials will not be able to hide behind the legal shields of internal government memos or executive decrees.

“They have no defence in international law,” he said. “They’re finished.”

Source

Bush trying to Avoid War Crimes Charges

Published in: on November 26, 2008 at 10:04 pm  Comments Off on No Amnesty for Cheney , Say Torture Opponents  
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British cost of Iraq and Afghanistan reaches £13Billion

November 26 2008

Michael Evans

The sharply rising costs of the war in Afghanistan were laid bare yesterday when the Ministry of Defence said that it would need more than £2.3 billion from Treasury reserves to pay for the campaign in Helmand province this year.

The estimated cost for Iraq in the same period will be nearly £1.4 billion, despite the planned reduction of British troops in the south from the present 4,100 to a few hundred from May.

The latest combined estimated bill of £3.7 billion for Iraq and Afghanistan this year means that the two operations will have cost the taxpayer £13.2 billion over the past six years.

Most of the funds have come from Treasury contingency reserves, although the MoD has had to bear some of the financial burden from its own budget to share the costs of new armoured vehicles sent to Iraq and Afghanistan.

If troop cuts go ahead in Iraq as planned, the cost of Operation Telic — codename for the military campaign — should come down markedly next year. The reduced military presence, which could even be cut to zero by the end of 2009, would be concerned solely with training the Iraqi Army’s 14th Division based in Basra. This would make it possible to transfer much-needed helicopters and other equipment to Afghanistan.

The cost of Operation Herrick, the campaign in Helmand, however, looks set to rise and rise. The bill in 2005-06 was £199 million. This increased to £738 million the following year, when British troop numbers were boosted to 7,500, and the cost last year was £1.5 billion. This was largely due to the multiple orders from the MoD for hundreds of extra armoured vehicles to meet “urgent operational requirements”.

Force protection has become the key issue after the deaths of about 36 British service personnel, killed by roadside bombs and landmines while travelling in the lightly armoured Snatch Land Rovers, sent to Iraq and Afghanistan from Northern Ireland.

Extra measures have also had to be taken to improve the survivability of helicopters in the harsh environment of Iraq and Afghanistan, and to fit better communications to all aircraft.

Costs for Operation Herrick will rise further if ministers give in to pressure from Barak Obama, when he becomes US President in January, for Britain to send more troops to Afghanistan. The Government has not ruled out sending more troops, but with 8,100 already serving in Afghanistan, Washington has been told that other Nato countries should be first in line to boost troop numbers.

In anticipation of British troop reductions in Iraq in the spring, a restructuring of coalition regional commands was announced yesterday. Until now the region south of Baghdad has been divided into three multinational divisional areas — centre, under US control; centre-south, under the Poles; and southeast, controlled by the British.

In future, there will only be one multinational divisional command headquarters south of Baghdad, which will be run by the Americans, who will also take “overwatch” control of three provinces that were once the responsibility of the British — Muthanna, Dhi Qar and Maysan, the security for which was handed over to the Iraqis some time ago.

The British southeast area of responsibility will be confined to Basra.

Source

Miliband refuses to rule out Afghanistan increase

MoD faces £2bn black hole

Pentagon wants UK troops for Afghan surge

Afghan president wants date for pullout of foreign troops

Obama’s Afghan War Plans May Run Into Weary Public, Deficits

British troops ‘cannot bear brunt of Barack Obama’s Afghanistan surge’

Elusive threats boost PTSD risk in Afghanistan

Afghan veterans more likely to suffer from mental illness

Published in: on November 26, 2008 at 9:57 am  Comments Off on British cost of Iraq and Afghanistan reaches £13Billion  
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3,000 dead from cholera in Zimbabwe

November 26 2008

By Basildon Peta

A man pushes his relative in a wheelbarrow to a Cholera Polyclinic, where victims of cholera are being treated in Harare, Zimbabwe

Getty

A man pushes his relative in a wheelbarrow to a Cholera Polyclinic,

where victims of cholera are being treated in Harare, Zimbabwe

Robert Mugabe, Zimbabwe’s President, is trying to hide the real extent of the cholera epidemic sweeping across his nation by silencing health workers and restricting access to the huge number of death certificates that give the same cause of death.

A senior official in the health ministry told The Independent yesterday that more than 3,000 people have died from the water-borne disease in the past two weeks, 10 times the widely-reported death toll of just over 300. “But even this higher figure is still an understatement because very few bother to register the deaths of their relatives these days,” said the official, who requested anonymity.

He said the health ministry, which once presided over a medical system that was the envy of Africa, had been banned from issuing accurate statistics about the deaths, and that certificates for the fraction of deaths that had been registered were being closely guarded by the home affairs ministry.

Yet the evidence of how this plague is hurting the people of Zimbabwe is there for all to see at the burial grounds in this collapsing country. “When you encounter such long queues in other countries, they are of people going to the cinema or a football match; certainly not into cemeteries to bury loved ones as we have here,” said Munyaradzi Mudzingwa, who lives in Chitungwiza, a town just outside Harare, where the epidemic is believed to have started.

When Mr Mudzingwa buried his 27-year-old brother, who succumbed to cholera last week, he said he had counted at least 40 other families lining up to bury loved ones. He said: “That’s sadly the depth of the misery into which Mugabe has sunk us.”

Unit O, his suburb, has been without running water for 13 months. The only borehole in the area, built with the help of aid agencies, attracted so many people day and night that it was rarely possible to access its water. Residents were forced to dig their own wells, which became contaminated with sewage. The water residents haul up is a breeding ground for all sorts of bacteria, including Vibrio cholerae, which causes severe vomiting and diarrohea and can kill within hours if not treated.

The way to prevent death is, for the Zimbabwean people, agonisingly simple: antibiotics and rehydration. But this is a country with a broken sewerage system and soap is hard to come by. Harare’s Central Hospital officially closed last week, doctors and nurses are scarce and even those clinics offering a semblance of service do not have access to safe, clean drinking water and ask patients to bring their own.

As the ordinary people suffer Mr Mugabe is locked in a bitter power struggle with the opposition leader Morgan Tsvangirai over who should control which ministries in a unity government. The President has threatened to name a cabinet without the approval of the Movement for Democratic Change, which could see the whole peace deal unravel.

Talks were continuing between the two parties in Johannesburg yesterday with little sign of a breakthrough, but pressure is growing from around the region and beyond to strike a deal as the humanitarian crisis deepens. Hundreds of Zimbabweans have streamed into South Africa, desperate for medical care. Officials in the South African border town of Musina say their local hospital has treated more than 150 cholera patients so far. “[The outbreak] is a clear indication that ordinary Zimbabweans are the true victims of their leaders’ lack of political will,” the South African government’s chief spokesman Themba Maseko said.

Yesterday Oxfam warned that a million of Zimbabwe’s 13 million population were at risk from the cholera epidemic, and predicted that the crisis would worsen significantly in December, when heavy rains start. “The government of Zimbabwe must acknowledge the extent of the crisis and take immediate steps to mobilise all available resources,” said Charles Abani, the head of the agency’s southern Africa team. “Delay is not an option.”

The Zimbabwean Association of Doctors for Human Rights has accused the government of dramatically under- reporting the spread of the disease. Doctors and nurses – whose salaries can just buy a loaf of bread thanks to hyperinflation – tried to protest last week against the health crisis, but riot police moved in swiftly.

It is not just cholera victims who are suffering. Willard Mangaira, also from Chitungwiza, described how his 18-year-old pregnant sister died at home after being turned away at the main hospital because there were no staff and no equipment to perform the emergency Caesarean operation she needed. Yet he added that if the situation in Chitungwiza was deplorable, what he had left behind in his village of Chivhu, 100 miles away, was beyond description. Adults and children alike were now living off a wild fruit, hacha, and livestock owners are barred from letting their animals into the bush to graze until the people have fed first.

Bought foodstuffs are beyond reach. The official inflation figure is 231 million per cent and the real level is higher: some estimates say basic goods double in price every day. Few can afford to give their deceased relatives a proper funeral. Death used to be a sacred time, with families taking a week to celebrate the life of the deceased before burial. Now the dead are buried instantly.

Lovemore Churi buried his father within an hour of his being confirmed dead. “I did not have the money to let mourners assemble and then start to feed them,” he said. “If mourners hear that someone is already buried, they don’t bother coming and one does not have to worry about how to feed them. That is the way we now live.”

The disease: Deadly, but preventable

* Cholera is caused when a toxin-producing bacterium, Vibrio Cholerae, infects the gut. It is carried in water containing human faeces.

* In its most severe form, and without treatment of antibiotics and rehydration, it causes acute diarrhoea and dehydration, and can kill within hours of symptoms showing.

* John Snow, a doctor in 19th-century London, was the first to link it with contaminated water when he studied an outbreak in Soho in 1854, which had killed more than 600 in a few weeks.

* Until then, it was thought to be spread by a mysterious “miasma” in the atmosphere. Snow showed the outbreak came from a single contaminated well in Broad Street. He had the handle of the well removed, and the epidemic stopped almost overnight.

* Preventing cholera relies on proper sewage treatment, sanitation and water purification.

Source

Half of the Zimbabwe population faces starvation

In Zimbabwe Doctors and Nurses beaten by police during peaceful protest

Sanctions=Zimbabwe kids ‘eating rats’

Cholera Grips Zimbabwe’s Capital
MSF teams react to cholera outbreak in Harare

November 14, 2008

In Zimbabwe’s capital Harare, Doctors Without Borders/Médecins Sans Frontières (MSF) is responding to a major outbreak of cholera, which the local Ministry of Health has declared “the biggest ever in Harare.” MSF has set up cholera treatment centers (CTC) in Budiriro Polyclinic and Harare Infectious Diseases Hospital, where 500 patients have been treated to date and, on average, 38 new patients are admitted every day. About 78 percent of the patients come from two densely populated suburbs in the southwest of Harare— Budiriro and Glen View—which have a combined population of approximately 300,000 people. The outbreak has also affected people from the neighboring suburbs of Mbare, Kambuzuma, Kwanzana, and Glen Norah. Up to 1.4 million people are endangered if the outbreak continues to spread.

Since they were asked to assist with the outbreak in Harare, MSF has been providing human, medical, and logistic resources at both CTCs. MSF’s growing team is comprised of over 40 national staff nurses, logisticians, chlorinators, and environmental health workers. The latter perform an important role in reducing the spread of cholera in the community, by disinfecting the homes of those affected, following up with contacts of patients, and supervising funerals, where the traditional practice of body washing, followed by food preparation and eating without proper hand washing, is a recognized factor in the spread of cholera.

Medical Teams are Overwhelmed

MSF water and sanitation officer, Precious Matarutse, comments on the situation: “At Budiriro CTC things are getting out of hand. There are so many patients that the nurses are overwhelmed. In the observation area, one girl died sitting on a bench. The staff is utilizing each and every available room and still in the observation area patients are lying on the floor. A man came to the clinic yesterday for treatment. His wife had just died at home and that is what made his relatives realize this is serious, and they brought the man to the clinic. They wanted to know what to do with the wife’s body. People are concerned about catching cholera from others. Health education must be intensified to inform the population.”

The challenges MSF teams face in the CTCs are manifold. Vittorio Varisco, MSF logistician, describes the struggle: “It is a constant challenge to keep up with increasing patient numbers. We are running out of ward space and beds for the patients. Today patients at the Infectious Diseases Hospital are lying outside on the grass and we are setting up tents with additional beds as an overflow for the wards.” MSF doctor Bauma Ngoya explained how vital human resources are in order to effectively treat patients and contain the outbreak: “Patients need constant supervision to ensure adequate hydration, without which they will die. As patient numbers continue to increase we must continue to recruit and train nursing staff.”

A New Urgency

Cholera is no new phenomenon in crisis-shaken Zimbabwe. In some of the rural areas of the country cholera is endemic and occurs every year. However, until recent years cholera was relatively rare in urban areas of the country where treated, piped water and flush toilets exist in most homes. With the ongoing economic crisis and the constantly deteriorating living conditions these urban areas are increasingly affected. The disease is water-borne and transmitted by the oral-fecal route; hence it thrives in unsanitary conditions. Run-down infrastructure, burst sewage pipes and water cuts are mainly responsible for the outbreak, as they force people to dig unprotected wells and to defecate in open spaces. During the rainy season from November to March, heavy rains effectively flush standing sewage into unprotected wells. The fact that the recent outbreaks of cholera have commenced before the rains, is a clear indication of the deteriorating sanitary conditions and shortage of clean water, and a worrying precursor to the rainy season.

Source

Afghan president wants date for pullout of foreign troops

November 25, 2008

Afghan President Hamid Karzai is calling for the international community to set a timeline for the withdrawal of troops from the war-torn country.

Speaking to a United Nations Security Council delegation on Tuesday, Karzai said that if no deadline is set, Afghanistan has the right to negotiate an end date for the presence of coalition forces.

“If there is no deadline, we have the right to find another solution for peace and security, which is negotiations,” Karzai was quoted as saying in a statement from his office.

He told the delegation that aerial bombings by international military forces and searches of Afghan homes must come to an end.

Karzai has repeatedly asked for Western troops to cutback on civilian deaths, which erode support for the foreign military presence.

Canada is part of a multi-national NATO-led force, a coalition that has about 50,000 troops in Afghanistan. About 2,500 Canadian soldiers are stationed in Afghanistan, primarily in the southern province of Kandahar.

The Afghan president also said not enough attention has been paid to militant bases outside Afghanistan, a likely reference to the volatile tribal areas in neighbouring Pakistan.

In the past, Afghan officials have accused Pakistan of harbouring Taliban and al-Qaeda militants. The U.S. has launched a number of missile attacks in the border region of the two countries in recent weeks.

But Karzai said the Afghan-Pakistan relationship has improved since new leaders were installed there over the last year.

Militants often operate from Pakistani tribal areas along the Afghan border in areas largely outside of the government’s reach.

The UN delegation is in Afghanistan to push for regional co-operation as it takes stock of the situation in Afghanistan.

Source

Published in: on November 26, 2008 at 5:30 am  Comments Off on Afghan president wants date for pullout of foreign troops  
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Canadian Government to Curb Parliamentary Perks

November 25 2008

Marie-Rose Angers, left, and Kevin Larocque clean the the Senate Chamber on Parliament Hill in Ottawa on Monday, Nov. 17, 2008.  (Sean Kilpatrick / THE CANADIAN PRESS)

Marie-Rose Angers, left, and Kevin Larocque clean the the

Senate Chamber on Parliament Hill in Ottawa on

Monday, Nov. 17, 2008. (Sean Kilpatrick / THE CANADIAN PRESS)

Kory Teneycke, the prime minister's communications director, speaks on Mike Duffy Live in Ottawa, on Tuesday, Nov. 25, 2008.

Kory Teneycke, the prime minister’s

communications director, speaks on

Mike Duffy Live in Ottawa, on Tuesday, Nov. 25, 2008.

As the economic storm clouds gather, Ottawa plans to curb the pay, bonuses and perks of politicians and top bureaucrats in Thursday’s fiscal update, CTV News has learned.

“In this time of belt-tightening, politicians have to be able to demonstrate to people that they are able to do that themselves,” Kory Teneycke, the prime minister’s communications director, told CTV News on Tuesday.

Sources told CTV News the measures will include:

  • Cancellation of a planned three per cent or $4,600 pay hike for MPs who already earn $155,400
  • Restricting the use of government challenger jets
  • Ending all unnecessary travel and entertainment
  • Cutting all business-class travel for cabinet ministers and top civil servants

It’s also believed that Finance Minister Jim Flaherty will order spending cuts at Crown corporations and other federal agencies. Insiders say the financial belt-tightening could save Canada tens of millions of dollars each year.

On Tuesday, debate in the House of Commons focused on the way the Conservative government has handled the country’s economy in recent months. Flaherty took much of the heat from opposition members on behalf of the absent prime minister.

Stephen Harper, who recently attended the APEC conference in Lima, Peru, this past weekend, was not present during question period.

Flaherty has said that there will be no fiscal stimulus included in the fiscal update, set to be delivered at 4 p.m. on Thursday.

On Tuesday, Flaherty was on the defensive, telling his fellow MPs that the Conservatives made prudent financial moves in recent years that left Canada in a better position than many of its peers.

“Canada is not an island, but fortunately, we are well prepared,” Flaherty said Tuesday, noting that the Conservatives had cut taxes and increased spending on infrastructure in the past two years.

But Liberal Leader Stephane Dion said it appeared to him that Prime Minister Stephen Harper had failed to predict the coming recession.

“The prime minister contradicts himself on deficits. He contradicts himself on recessions as well,” said Dion, pointing to the prime minister’s recent referrals to ‘structural’ deficits and ‘technical’ recessions.

“Recessions are not about semantics — they are about job losses, about Canadians who need help,” Dion said.

“Why doesn’t the prime minister get it?”

In response, Flaherty said Dion “ought to take the advice of the expert on deficits in his own caucus” — whom he named as Liberal MP Bob Rae.

Rae served as premier of Ontario during the recession of the early 1990s.

Flaherty quoted Rae as saying that it was “not a reasonable position or an intelligent position to take” that the prime minister was personally to blame for any recent deficit that may have occurred at the federal level.

A few minutes later, Bloc Quebecois Leader Gilles Duceppe returned to the issue of the prime minister not predicting the economic crisis.

“The prime minister said during the election that there would not be a recession, but today he admits that there will be a recession — and that the recession is right at our door,” Duceppe said in French.

“Can the minister explain what was so urgent to call an election because of the economic crisis, whereas now it’s not so urgent to take action to deal with the impacts of this crisis?”

Flaherty said “no one in the world was predicting the kind of economic downturn, and the severity and depth of the economic downturn that we’ve experienced in the last 12 weeks.’

Things also got a little heated during an exchange between the finance minister and Liberal backbencher Yasmin Ratansi, who asked Flaherty about the way he would use “non-core federal assets” to help raise funds for the government.

Flaherty said the government intended to review corporate assets under the expense management program, to determine if individual assets “still fulfill a need for the people of Canada.”

The finance minister bristled at a follow-up question from Ratansi, who suggested the finance minister had shown a “lack of fiscal discipline” in doing his job prior to the current economic crisis.

“Fiscal discipline is an oxy moron coming from a Liberal member,” Flaherty said, while house members both cheered and jeered.

Think-tank predicts big deficit numbers for Canada

Also on Tuesday, the Ottawa-based Canadian Centre for Policy Alternatives, a left-of-centre research institute, said Canada may see a $46.8 billion deficit in the coming years, if there is a major recession.

That’s much bigger than the high end of the parliamentary budget officer’s prediction, who said last week that Canada’s deficit could be as high as $14 billion as the economy slows in the next two years. Kevin Page put the low end of possible deficits at just below $4 billion.

According to the CCPA, those numbers may be too low.

“A major recession starting in the fourth quarter of 2008 and lasting through 2009 could produce deficits of $1.4 billion in 2008/09, rising to $27.9 billion in 2009/10, and $46.8 billion in 2010/11,” said a CCPA press release.

However, it also noted that a mild recession would create:

  • a very small deficit in 2008/09, perhaps in the $1.4 billion range
  • a $12.6 billion deficit in the following year that would go up to $20.5 billion in 2010 and 2011

The CCPA is calling on Ottawa to take decisive action to curtail the damage from a global economic slowdown.

“The real underlying question now is not whether the federal government should run a deficit but how large the planning deficit for 2009/10 should be,” Marc Lee, CCPA senior economist, said in a press release.

“The federal government has a lead role to play in cushioning the impact of a recession, both through federal programs and in partnership with the provinces.”

Source

Canada urged to join U.S. in creating ’strong, bold’ stimulus package

Icelandic politicians to get paid less

Greenland has voted ‘yes’ vote for autonomy

November 26 2008


75 percent voted ‘yes’ while 23 percent had voted’ no ‘in the referendum on autonomy.


Source


Greenland may be getting an early election

Greenland’s coalition government appears to be falling apart as it faces a growing number of problems that it doesn’t seem to be able to address. Sermitsiaq reports that a referendum on extending the home rule government’s autonomy from Denmark today, Tuesday 25 November could result in an early election call. Greenland Premier Hans Enoksen has the power to call for an early election if he feels it will be to his side’s advantage.

Greenland’s Audit Commission recently criticised four government ministers over their mishandling of public affairs. One minister, Aqqalu Abelsen, has already been forced out of the government as its Family and Health Minister. By calling for a snap election, Enoksen could help the other four ministers in his party avoid the same fate.

Self-rule will ultimately be the platform that Enoksen uses in his campaign if he decides to call for a quick election, which could happen as soon as 28 November, the last working day of Parliament. A public vote in favour of self-rule would likely have a knock-on effect helping the premier’s Siumut Party retain what power it has, suggests the Sermitsiaq newspaper.

The Siumut Party played a major role in negotiating the self-rule agreement with Denmark earlier this year. The Siumut and Atassut parties have 17 members in Parliament between them, as compared to the 14 members of the opposition. It could be a risky move to call a snap election, but now could be the ideal moment to solidify Enoken’s position.

Source

Greenlanders vote on more autonomy from Denmark

November 25, 2008

People in Greenland were voting Tuesday in a referendum on whether to establish a self-rule government, moving the Arctic glacial island closer to independence from Denmark.

About 56,000 people — most of whom are Inuit — live in Greenland, which is currently a Danish province. More than half of Greenlanders are eligible to vote in Tuesday’s referendum.

Greenlanders are asked to vote on whether they support a proposal that would establish Greenland’s right within Denmark’s constitution to be recognized as a nation, as well as give Greenlanders control over oil, gas and mineral resources on the island.

If the majority of Greenlanders vote Yes to the proposal, it would also establish a separate police force, courts of law and coast guard. As well, it would make Kalaallisut, or Greenlandic Inuit, the island’s official language.

“I think it’s so exciting,” Aaju Peter, an Iqaluit resident who came to Nunavut from Greenland, told CBC News on Monday.

“When you’re in your own home, you should be able to say where the furniture goes, and not have somebody else dictate where the furniture goes.”

Greenland became a Danish colony in 1775 and remained that way until 1953, when Denmark revised its constitution and made the island a province.

Under the 1979 Home Rule Act, Greenland got its own parliament and government, and self-determination in health care, schools and social services.

Foreign and military affairs are controlled by Copenhagen, and that would continue under the proposal.

The proposal being voted on Tuesday has been worked out between Greenland and Denmark over the past few years.

We want to take care of ourselves’

Aqqaluk Lynge, president of Greenland’s Inuit Circumpolar Council, said Denmark’s old colonial system taught Greenlanders that “‘We would take care of you.'”

“We don’t want that,” Lynge said. “We want to take care of ourselves.”

The outcome of the referendum is likely to be respected by the Danish government, as it supports greater autonomy for Greenland and a phase-out of an annual Danish subsidy of about 3.5 billion kroner, or about $588 million US, which accounts for two-thirds of the island’s economy.

But should the majority of Greenlanders vote Yes in Tuesday’s referendum, Denmark would not immediately withdraw that funding. Instead, the proposal calls for a gradual phasing out of the subsidy when the island earns

Steen Ulrik Johannessen, a journalist with the Danish News Agency in Copenhagen, told CBC News that the referendum proposes the transfer of responsibility — and the phasing out of the subsidy — to be done gradually.

“As soon as the oil and minerals give more than $1 billion a year, Denmark would slowly withdraw economically,” he said. “This would pave the road to independence.”

The proposal would also set new rules on how to split potential oil revenue between Greenland and Denmark. Greenlanders hope to find oil reserves off the western and southern coast of the glacial island, although exploration so far has been unsuccessful.

But while some on the island have said Greenland may not yet be ready for more independence, polls indicate most Greenlanders will likely vote Yes on Tuesday.

“To have an identity is so important that I think that a vast majority of Greenlanders will say Yes,” Lynge said.

Source

Greenland has voted ‘yes’ vote for autonomy and now we will have to wait and see what Denmark has to say about it all.

Published in: on November 26, 2008 at 4:32 am  Comments Off on Greenland has voted ‘yes’ vote for autonomy  
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Canadians using food banks at record levels

November 25, 2008

OTTAWA

Working Canadians are turning to food banks in record numbers and the demand is set to increase as the global financial crisis hits harder and people take lower-paying jobs, a leading charity said on Tuesday.

Food Banks Canada said a record 14.5 percent of Canadian households with at least one working adult were receiving help from food banks, up from 11.9 percent in 2002.

Despite a decade of healthy economic growth, food bank use remains 6 percent higher than in 1997.

Around 700,000 of Canada’s 33 million population — a third of them children — are helped by a food bank each month, said the association, which represents food bank operations across the country.

“More people assisted by food banks are working. We are seeing this trend right across the country,” said Katharine Schmidt, executive director of Food Banks Canada.

“Individuals and families are struggling as well-paying jobs are replaced by those that do not provide adequate wages, and that are more likely to be part-time or temporary,” she said in a statement.

Schmidt called on the federal government to increase benefits paid to the working poor and to children.

(Reporting by David Ljunggren; editing by Rob Wilson)

Source

Published in: on November 26, 2008 at 1:13 am  Comments Off on Canadians using food banks at record levels  
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Canada urged to join U.S. in creating ‘strong, bold’ stimulus package

By David Akin
November 25, 2008

OTTAWA –

As the government of its biggest trading partner, the United States, announced a new $800-billion stimulus package, pressure is growing on Canada’s federal government to do something equally dramatic, and to do it quickly.

“Around the world, governments are taking this economic crisis seriously, and they’re taking strong and bold action,” NDP Leader Jack Layton said in the House of Commons on Tuesday. “Economists of virtually all stripes are saying dramatic action is needed, and it’s needed right now.

“We have our government saying they don’t intend to do anything until 2009.”

Finance Minister Jim Flaherty speaks during Question Period in the House of Commons on Parliament Hill in Ottawa on Tuesday.

Finance Minister Jim Flaherty will present the annual fall fiscal and economic update Thursday in the House of Commons. He has already said there will be no significant spending or tax initiatives in that update. Those, he’s said several times over the last few days, will have to wait for the 2009 budget, which will likely be presented in February.

But Jayson Myers, an economist and the chief executive of the lobby group Canadian Manufacturers and Exporters, says his members are in urgent need of help.

“One thing I would like to see in the update is a sense of urgency, some sense of the importance of dealing, especially, with the credit problems before they have a major impact on industry,” Myers said. “I’m really afraid we’ll see this financial meltdown translating into an industrial meltdown, and it’ll be too late to respond after we get official statistics from Stats Canada.”

Canadian government officials, though, are still trying to determine how to get the biggest bang for their buck, and trying to do that amid one of the most rapidly deteriorating economic environments ever.

So when and if Flaherty does get around to it, what will it look like?

Experts are largely unanimous on one point: In order to have the desired effect, the stimulus package will have to be massive.

How massive?

Consider this: The sum total of all economic activity in Canada – our gross domestic product, or GDP – is about $1.6 trillion. When the G20 leaders met in Washington earlier this month, they agreed that each one would come up with a stimulus plan worth about two per cent of their country’s GDP. In Canada’s case, that would be about $32 billion.

It’s not clear though if, when Harper committed that two per cent target, he would count the stimulus his government already provided earlier this year in the form of tax cuts, or whether this would all be new money.

“I don’t think you can do $32 billion of temporary stimulus and ever get back out of the thing,” said Don Drummond, TD Bank’s chief economist. Drummond, who was once a top federal Finance Department bureaucrat in charge of preparing budgets, says a stimulus package of $32 billion would mean deficits for a generation.

At a meeting last weekend of Pacific Rim leaders in Peru, Harper declined, when asked, to specify what kind of stimulus plans he was considering.

That’s why some observers are betting Harper will count previous tax cuts as part of the package. Flaherty certainly seemed to suggest, in his response to Layton in the Commons, that the government had already provided some stimulus.

“The GST reduction is permanent. The income tax reductions are permanent. The business tax reductions are permanent. Some more tax reductions come into force next year in 2009. This is a permanent stimulus to the Canadian economy,” Flaherty said.

But experts ranging from the Paris-based Organization of Economic Co-operation and Development (OECD) to the left-leaning Canadian Council on Policy Alternatives (CCPA) say Canada is uniquely placed among its peers in that it can likely afford to do more.

“Canada is in an excellent position to do its share and engage a bold fiscal stimulus package, consisting of infrastructure and other public spending,” wrote CCPA economist Marc Lee in a report released Tuesday. “Not only should the federal government accommodate a deficit that arises from worsening economic conditions, it should stand prepared to increase operating and capital expenditures in order to lean against adverse economic winds.”

The CCPA says that, among other things, Ottawa ought to shore up the Employment Insurance program, increasing the number of weeks a worker can receive benefits and boosting the maximum weekly benefit to $600 from $435.

“EI benefits are a highly effective stimulus as they quickly replace income for recently unemployed workers, who are very likely to spend the proceeds,” Lee said.

Other income support programs operated by Ottawa, such as the Guaranteed Income Supplement for seniors and the Canada Child Tax Benefit, could also be strengthened.

But Drummond says those initiatives would become permanent and don’t necessarily help the country boost its productivity.

Source

They should also urge provinces to raise welfare rates, “putting back that 20% cut”.

Many more are have to turn to it as a last resort but the benefits are so minuscule that persons, single or with a family can and do end up homeless very quickly.

This should also be done in other countries as well.

Unfortunately because of job losses and the Financial Crisis many around the world use welfare as a last resort. Raising the Employment Insurance rates people receive is a good for those who can access it but not all can. Part time workers will benefit little from it.

Those with lower paying jobs also will not receive as much on Employment insurance either.

Those making minimum wage now only get 55% of their wage which is not enough to live on.

Raising that back to it’s former 75% would be beneficial to many.

Many who make minimum wage are also, the working homeless.

Raising the Employment insurance rates and welfare rates are a necessity at this point in time.

Prevention should be a priority.

Following the US is not necessarily a good ice when it comes to many things. The Financial Crisis began there and it is obvious their ideas, may not be so good.

Their “Financial Wizards” are not “Wizards” after all now are they?

Taking their advise could mean “Doom”.

Maybe the US should be taking advise from others instead.

Published in: on November 26, 2008 at 12:53 am  Comments Off on Canada urged to join U.S. in creating ‘strong, bold’ stimulus package  
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Clinton’s moment

By Andrew Cohen

November 25, 2008

Barack Obama — king of composure, emperor of events — is about to lose control over both. “No Drama Obama” is writing the plot of his very own soap opera.

Its name is Hillary Rodham Clinton.

It is expected that Mr. Obama will appoint Mrs. Clinton secretary of state. This is the most prestigious position in the cabinet, the face of America to the world. On the surface, the move is brilliant.

After all, before there was Mr. Obama, there was Hillary Clinton. She was the Supernova before he was the Usurper. She was the best-known woman in the country. Her success seemed inevitable less than a year ago; she would win the nomination of the Democratic party and the presidency, too.

Now Mr. Obama has apparently invited her to join his administration. Why? And she has apparently accepted. Why? For Mr. Obama, Mrs. Clinton and the country, it’s a mistake.

Mr. Obama did not need Mrs. Clinton in his inner circle. If he had, he would have asked her to become his vice-president in August. He had more reason then; she had won almost as many votes as he did (18 million) in that long, enervating political season from January to June.

But Mr. Obama never seriously considered Mrs. Clinton for the vice-presidency. We know this because he never “vetted” her or her husband. He concluded, correctly, that he did not need her to “unite” Democrats. He could win with Joe Biden.

He had other grounds for caution then. It was thought that Mrs. Clinton would blunt his message of change and would establish a rival centre of power within his administration.

And there was Bill Clinton, whose indiscretion in his wife’s campaign diminished his carefully cultivated stature as a conscientious, philanthropic former president. Moreover, his shady business dealings with strutting strongmen since leaving office threatened to undermine Mr. Obama’s squeaky-clean image.

Having first rejected Mrs. Clinton, Mr. Obama seems to want her now. He knows once he chooses her he is stuck with her; politically speaking, she cannot be fired.

The appointment is hard to fathom. Her eight years in the Senate (on the armed services committee) and eight as first lady (she travelled widely in a ceremonial role) have exposed her to the world, yes, but they have scarcely made her a seasoned diplomat or a cabinet secretary, a glaring inexperience Mr. Obama noted during the primary season.

Cosmopolitan and intelligent as she is, Mrs. Clinton does not come from diplomacy, the academy, the military, the bureaucracy or the cabinet, which have produced almost all postwar secretaries of state. Dean Gooderham Acheson, George C. Marshall, John Foster Dulles, Dean Rusk, Henry Kissinger, Cyrus Vance, James Baker, Warren Christopher and Colin Powell all brought far more expertise to the job than she does.

This hasn’t fazed Mr. Obama. Perhaps he wants to recreate Lincoln’s fabled “team of rivals.” Perhaps he wants her out of the Senate, which is why John F. Kennedy picked Lyndon Johnson as his vice-president. Perhaps he wants her international star power (not that he doesn’t have enough of his own).

He could have had Bill Richardson, John Kerry, Chuck Hagel, Richard Lugar, Bill Bradley, Sam Nunn, all successful active or former politicians. Or the creative Strobe Talbott or Richard Holbrooke.

Yet, if the appointment raises doubts, it is about judgment more than generosity. It takes a self-confident chief executive to appoint a rival to his inner circle, especially one with a flawed, egotistical husband. Mr. Obama has done it.

If the choice is dubious for Mr. Obama, it is mystifying for Mrs. Clinton. At 61, she has presumably concluded that this job (whether four or eight years) is her last in public life. She could run for president in 2016, at 69, but it’s unlikely.

Now she gives up her seat in the Senate, where she might have had a position of leadership. She might have spent the next 20 years or so there, becoming the spiritual successor to the incomparable Edward M. Kennedy.

As the U.S. enters a new liberal hour, she might have become its tribune. She might have become the champion of health care (redressing her mishandling of the file in 1993), the green economy and a multilateral foreign policy. Ultimately, like Senator Kennedy, she might have made her mark as a legislator.

Instead, she imagines herself a stateswoman, representing a resurgent United States. It may be that she and the new president have a fine relationship. It may be that Mr. Biden, who was to be chief diplomat, won’t resent the competition. It may be that Bill behaves himself.

If this doesn’t work, though, if the team of rivals becomes a clash of the titans, no one should be surprised.

Source

Is the World in Obama’s ‘Shock and Trance’ Mode?

Is the World in Obama’s ‘Shock and Trance’ Mode?

November 25, 2008

Is the world poised to make the transition from shock to trance on climate policy — using the terminology that President-elect Barack Obama chose to describe America’s cyclical interest in moving beyond fossil fuels?

Today’s sobering story on how economic turmoil could blunt climate-friendly energy plans, by Elisabeth Rosenthal, implies that a new kind of climate and energy trance may indeed be nigh — not one created just by dropping prices for coal and oil but also by the urgency of a global economic retreat. Below I seek your thoughts on what could avoid a return to trance mode.

There’ve been two periods that could be construed as climate shocks along the 100-year trajectory of science pointing to human-caused heating of the Earth. The first came in the summer of 1988. Blazing heat and drought in the North, the combustion of Yellowstone and the Amazon, and warnings from scientists led by James E. Hansen led to a burst of headlines and scientific conferences, the creation of the Intergovernmental Panel on Climate Change, and the negotiating path toward agreement on the first climate treaty in 1992.

Then came the trance, acknowledged by former President Bill Clinton in a video interview. Low energy prices, the distraction of the first Persian Gulf war, and a temporary cool spell following the 1991 eruption of Mount Pinatubo in the Philippines all helped tamp down global warming as an issue through much of the 1990’s, outside the brief burst of triumphant proclamations with the 1997 negotiation of the Kyoto Protocol, a stricter addendum to the faltering 1992 climate pact.

The second shock built slower and has lasted longer. It started with the European heat wave of 2003 and intensified from 2005 to 2007 as Hurricane Katrina and “An Inconvenient Truth” put climate in the headlines, the science pointing to a human hand on the planet’s thermostat coalesced with the fourth I.P.C.C. report, and the Arctic Ocean sea ice peeled back in a way never observed before.

Many climate scientists have insisted that this is not a shock, but the opening salvo from nature in a new age of climatic destabilization: Global warming, they say, is no longer a “somewhere, someday” issue but here and now. Other serious researchers in the field, while convinced of the building long-term danger, warn that nature will almost surely jostle chaotically through cool and warm spells along the way to what Dr. Hansen calls “a different planet.” They warn not to read too much into current events (particularly hurricanes) unless you’re ready to explain the quiet seasons and cold snaps along with the tempests and heat waves.

The question is, can societies commit to a sustained effort to move beyond fossil fuels (and to curtail the destruction of tropical forests) even as nature runs hot and cold — and especially as the economy does the same?

In today’s story, European environmental officials echo what President-elect Barack Obama has said, insisting that the burst of government spending aimed at restoring economic vigor can be directed toward building the foundations of an environmentally sound energy supply. But the story includes ample hints that such a focus may be tough to sustain given how costly the non-polluting energy technologies remain compared to fossil options, at least if energy costs are measured using conventional economic yardsticks that don’t include long-term costs.

What can avert the return to trance mode? The other day, the energy specialist and climate campaigner Joe Romm told me that a necessary element for getting America mobilized to lead the world to a new non-polluting energy future was a big wakeup call from nature. “We will need a WWII-style approach, but that can only happen after we get the global warming Pearl Harbor or, more likely, multiple Pearl Harbors,” he wrote. (He blogged on the question on here and here)
3) Continued (unexpected) surge in methane
4) A megadrought hitting the SW comparable to what has hit southern Australia.
5) More superstorms, like Katrina
6) A heatwave as bad as Europe’s 2003 one.
7) Something unpredicted but clearly linked to climate, like the bark beetle devastation.
8) Accelerated mass loss in Greenland and/or Antarctica, perhaps with another huge ice shelf breaking off, but in any case coupled with another measurable rise in the rate of sea level rise,
9) The Fifth Assessment Report (2012-2013) really spelling out what we face with no punches pulled.

Source

Pollution Reports including Top 100 Corporate Air Polluters 2007 in US

Pollution Reports including Top 100 Corporate Air Polluters 2002 in US

Published in: on November 25, 2008 at 11:37 pm  Comments Off on Is the World in Obama’s ‘Shock and Trance’ Mode?  
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Citigroup flop exposes folly of empire-building

November 26 2008

FLORIDA:

Sandy Weill never dreamed Citigroup would end up as a ward of the government. When he merged Citicorp and Travelers Group in 1998, Weill envisioned the ultimate financial-services empire — peddling checking accounts, stock brokerage, investment banking and commercial loans around the world.

Today, five years into his retirement as chief executive officer, Citigroup has collapsed under the weight of massive bad market bets.

After the company’s stock closed November 21 at $3.77, down 87 percent for the year, the US government threw more aid at the giant to prevent a run on the bank by customers.

The Feds agreed to back up $306 billion in Citigroup bad debt, covering 90% of losses after the bank absorbed the first $29 billion. The government also infused $20 billion into the bank with a purchase of preferred stock. That was in addition to the $25 billion of Citigroup preferred shares it bought last month as part of a plan to recapitalise US banks.

Citigroup’s failure undercuts the strategy of many US businesses. Bigger is better, CEOs argue. Only the big survive in a cutthroat world. What they don’t say is, I get paid more if my company gets larger. In the years 2000 through 2005, Sanford I Weill took $83 million in bonuses for his work at Citigroup.

Weill and his successor, Charles Prince, might argue that they had bad luck. No one predicted the collapse of the credit markets that followed the excesses of the US mortgage business. Still, wasn’t the Citigroup financial powerhouse built to survive any crisis?

Better that they should acknowledge the colossus was a bad idea, and their own poor management. Citigroup’s $66 billion in write-offs for bad loans proves a reckless approach to investments. On Weill’s watch, Citigroup issued fraudulent reports on stocks and paid billions of dollars to settle charges it misled bond buyers.

The government may have let current Citigroup CEO Vikram Pandit remain at the helm because he has been in charge only since December — leaving most of the blame to Weill and Prince. Citigroup shares on Monday rallied along with the rest of the stock market after the company’s second bailout, climbing to $5.95. The Standard & Poor’s 500 Index rose 6.5%.

US taxpayers can only hope this latest government move is the answer to the credit-market woes. If banks start trusting each other again, losses on the bad-loan deal with Citigroup might be minimal.

There’s also a chance the government will earn a little money for its efforts. For the new $20 billion in cash, it gets $27 billion in Citigroup preferred stock, paying an 8% dividend. The Feds also get an option to buy a 4.5% stake in Citigroup common stock.

As part of the earlier deal, the government owns $25 billion of Citigroup preferred, paying 5% the first five years and 9% after, plus warrants to buy common shares equal to 15% of that preferred investment.

Weill’s Citigroup stock prospered for a time after his merger, topping $50 on occasion. But the shares began falling steadily in the spring of 2007. Citigroup’s best strategy now may be to undo what Weill wrought and Prince tried to manage.

“We should be thinking about breaking this company up and redistributing the assets into stronger hands,” says Christopher Whalen of Institutional Risk Analytics, a research firm in Torrance, California.

Let’s hope Bank of America CEO Kenneth Lewis is paying attention. Lewis bought Countrywide Financial to beef up in mortgages, and is buying Merrill Lynch to add stock-brokerage and investment-banking assets. Does he really want to mimic Citigroup?

Source

There is a very old saying “The Bigger they are the Harder they Fall”.

Major US banks have a credibility problem

Citibank Bailout May Leave You Holding the Bag in More Ways Than One

US Banks Will be Begging at the Tax Payers Door Again Soon

Banks Ripping off Credit Card Customers

Wall Streeters are just Welfare Recipiants in Disguise

Published in: on November 25, 2008 at 11:01 pm  Comments Off on Citigroup flop exposes folly of empire-building  
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Pakistan gets $7.6 billion loan package from IMF

Supporters of Pakistan's opposition party Tehreek-e-Insaf, or Moment for Justice, take part in a rally against the U.S. missile strikes in the Pakistani tribal areas, Monday, Nov. 24, 2008 in Islamabad, Pakistan. Protesters urged Islamabad to sever ties with the United States over the strike _ highlighting the risks for Washington as it seeks to eliminate extremists along the Afghan border yet also support Pakistan's democratically elected government.
Supporters of Pakistan’s opposition party Tehreek-e-Insaf, or Moment for Justice, take part in a rally against the U.S. missile strikes in the Pakistani tribal areas, Monday, Nov. 24, 2008 in Islamabad, Pakistan. Protesters urged Islamabad to sever ties with the United States over the strike _ highlighting the risks for Washington as it seeks to eliminate extremists along the Afghan border yet also support Pakistan’s democratically elected government. (AP Photo/Anjum Naveed)
By Chris Brummitt
November 25, 2008

ISLAMABAD, Pakistan—Pakistan, the front-line state in the battle against Islamist terrorism, has won final approval for a $7.6 billion loan from the International Monetary Fund to help stave off a possible economic meltdown.

The IMF said a first installment of $3.1 billion will be transferred immediately to the nuclear-armed country, which is battling surging violence by Taliban and al-Qaida-linked militants and is increasingly seen in the West as key to stabilizing neighboring Afghanistan.

The IMF said the Pakistani economy had been badly hit by the worsening security situation, higher oil and food import prices and the global financial and credit crisis.

“By providing large financial support to Pakistan, the IMF is sending a strong signal to the donor community about the country’s improved macroeconomic prospects,” said IMF acting Chairman Takatoshi Kato in a statement released after the decision Monday in Washington, where the fund is based.

Pakistan’s young government had been reluctant to go to the IMF but had little choice after close allies — the “United States, China and Saudi Arabia” — turned down pleas for significant bilateral aid.

In mid-November, the IMF announced it had reached a preliminary agreement on the deal.

Opposition and nationalist lawmakers have criticized the government for turning to the fund, saying the IMF will impose “austerity measures” that will hurt ordinary Pakistanis, two-thirds of whom live on $2 dollar a day or less.

“This IMF loan the government is getting is in fact poison, and the nation has been forced to drink it,” said Javed Hashmi, a senior figure in the main opposition party, told reporters.

The loan removes the most pressing risk facing the country — that it would not be able to repay dollar-denominated government bonds due to mature early next year, said Muzammil Aslam, an economist at the Pakistani securities firm KASB.

Aslam and other economists said Pakistan’s government had already made some tough decisions, such as hiking the prices of fuel and electricity.

Many Pakistani economists and commentators argued that the country had no choice but to turn to the IMF. They say it is now critical that the money is well spent — always a worry in corruption-prone and chaotic Pakistan.

The IMF said in return for the money Pakistan had agreed to phase out energy subsidies, boost taxes and implement other money saving reforms. It said the World Bank would put in place a “comprehensive” social security net to shield the poor from any cuts.

In an interview with The Associated Press earlier this month, President Asif Ali Zardari said the loan was “a difficult pill, but one has to take medicine to get better,”

The loan will immediately boost Pakistan’s foreign currency reserves, which have seen a rapid decline that has seen the value of the rupee fall some 20 percent since March, and enable it to pay off foreign-denominated debt due to mature soon.

The currency has clawed back some ground in recent weeks as it became clear that the IMF would step in.

The country is also wracked by power cuts, the costs of essential goods are soaring and the stock market has plummeted amid waning investor confidence.

Pakistan is one of a number of countries including Hungary and Ukraine that has sought IMF assistance in the wake of the global credit crunch. However, its strategic importance in the U.S.-led war against terrorism makes its financial and political stability particularly critical for the international community.

U.S. officials say that militants sheltering in its lawless northwest are behind much of the violence in Afghanistan, where a resurgent Taliban threaten the success of the U.S.-led mission there seven years after the invasion.

They also say that al-Qaida’s leadership — including Osama bin Laden — has managed to regroup in the region, and is possibly plotting attacks on the West.

Pakistan’s army is batting militants in several parts of the northwest but some Western analysts and officials suspect elements within the security forces of sympathizing with the extremists.

Officials in Peshawar said Tuesday that gunmen kidnapped a Pakistani working on a U.S.-funded aid project in the region.

Police said the attackers seized the man from a convoy of relief vehicles in the Dir region on Monday. Other aid workers escaped after villagers fired on the attackers.

The U.N.’s World Food Program said the victim was distributing wheat and cooking oil on its behalf. WFP spokesman Amjad Jamal said the food was paid for by the U.S. government.

Jamal said it was unclear if Taliban militants were behind the kidnapping and that WFP had received no demands.

Source

If it were not for the war next door to them and the fact the US continues to attack them, they probably wouldn’t need  help. War after all does cost a lot.

Stopping the Attacks on Pakistani soil by the US, would be in everyone’s best interest.

“If America doesn’t stop attacks in tribal areas, we will prepare a lashkar [army] to attack US forces in Afghanistan,” tribal chief Malik Nasrullah announced in Miran Shah, north Waziristan’s largest city. “We will also seek support from the tribal elders in Afghanistan to fight jointly against America.”

Published in: on November 25, 2008 at 9:33 pm  Comments Off on Pakistan gets $7.6 billion loan package from IMF  
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Major US banks have a credibility problem

November 25 2008

Citigroup Inc’s repeated assurances that it did not need additional capital, followed by its quick about-face in accepting billions of dollars in aid from the US Treasury, has many investors wondering what other banks are hiding.

“The biggest question is what, as the owner of bank stocks, do you really own?” said Timothy Ghriskey, chief investment officer at Solaris Group. “It’s tough to say this won’t happen again.”

He added, “Financial institutions are leveraged companies, and any time you have a highly leveraged situation, it is based on faith and trust.”

After long insisting it was strong enough to weather plunging markets, Citigroup agreed on Sunday to its second U.S. government bailout package in two months. The bank is selling $20 billion of preferred stock, slashing its dividend and granting warrants.

Citigroup will unload most of the potential losses from $306 billion of risky assets to taxpayers.

One immediate result of Washington’s bailout was a relief rally on Wall Street. The Dow Jones industrial average climbed nearly 5 percent on Monday. Shares of Citibank, which plunged 60 percent last week, climbed 58 percent on Monday to end at $5.95 on the New York Stock Exchange.

“Obviously, our stock price was under a lot of pressure last week, and we wanted to try to address that,” Citi Chief Financial Officer Gary Crittenden told Reuters in an interview on Monday.

Yet the flip-flop is the latest in a series by U.S. banks this year, whose assurances of safety and soundness have been followed soon after by bailouts and rescue financing.

These episodes cast further doubt on statements made by banking executives and, investors said, could hurt the next financier that finds itself under the gun.

MORE CHINKS IN CONFIDENCE

“Each time the government or companies admits to a problem, it creates further chinks in what confidence is left,” said David Dietze, who manages money at Point View Financial Services in Summit, New Jersey.

Back in March, Bear Stearns CEO Alan Schwartz and other executives insisted the No. 5 securities firm had ample capital and liquidity, only to see hedge funds drain the firm’s cash in a matter of days. Bear ultimately was sold to JPMorgan Chase at a fire-sale price of $1.5 billion and a $29 billion government backstop.

Lehman Brothers CEO Dick Fuld and other executives contended the No. 4 Wall Street bank had plenty of capital and solid assets, waging a war of words with critics who accused it of inflating the value of its illiquid assets. By mid-September, the firm lost the confidence of trading partners and collapsed into bankruptcy

Likewise, Merrill Lynch chief John Thain repeatedly said the big brokerage had raised more capital than it needed, yet Lehman’s woes showed the vulnerability of a balance sheet burdened by mortgages and other hard-to-trade debt. Merrill rushed into the arms of Bank of America Corp.

Even survivors such as Goldman Sachs CEO Lloyd Blankfein and Morgan Stanley chief John Mack have offered rosy forecasts about the economy and financial markets that proved premature.

Michael Holland of New York money management firm Holland & Co said there are too many legal and regulatory penalties to think executives would willfully misstate their condition.

Even so, most investors said the market conditions have changed so rapidly, and deteriorated in such surprising ways, that executives cannot always be blamed for getting it wrong.

“The facts have been changing very rapidly in these institutions,” Holland said. “When we get a comment from a CEO, we don’t know what the markets will be like tomorrow.”

Not that it makes investors, who have seen their stakes wiped out, feel any better as they look ahead.

Point View’s Dietze observed it was only six weeks ago that the FDIC signed off on a proposed Citi takeover of Wachovia Corp, a struggling regional bank. Yet in that short period of time, Citi went from being a consolidator and rescuer to one of the rescued.

“If the government and the company missed it,” Dietze said, “to what degree can we investors be assured they now have their arms around the problems?”

Source

Citibank Bailout May Leave You Holding the Bag in More Ways Than One

Published in: on November 25, 2008 at 9:04 pm  Comments Off on Major US banks have a credibility problem  
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Billions here, billions there: A look at where it’s going

Billions here, billions there: A look at where it’s going

November 24 2008

Wars. Bailouts. Unemployment aid. Automakers. Washington has opened the tap on big spending and money is gushing down the pipeline.

The national debt now stands at $10.6 trillion, compared with about $5.7 trillion in 2000 before George W. Bush took office. Buckle up, because that figure is going to climb.

Here’s where some of the big bucks are going:

Iraq war Various estimates put the total cost of the military operation since 2003 at about $600 billion.

Bailout — The Troubled Assets Relief Program (TARP), signed on Oct. 3, provides $700 billion in financial relief. Of that amount, the Treasury Department has committed about $270 billion in cash injections for banks and another $40 billion for the insurer American International Group.

Economic stimulusEarlier this year, Bush signed into law a $168 billion stimulus package that included rebates for households and tax breaks for businesses. President-elect Barack Obama is preparing another stimulus plan, and Democratic lawmakers say they expect the package could total between $500 billion and $700 billion.

Detroit General Motors, Ford, Chrysler and their suppliers have been authorized $25 billion by Congress to retool their assembly lines for making more fuel-efficient cars. Now, the Big Three want an additional $25 billion to ensure they will have the funds to operate through spring. Congress could act on it in December.

Housing In July, Bush signed a housing bill that included $300 billion in new loan authority for the government to guarantee cheaper mortgages for troubled homeowners. In September, the Treasury took over mortgage giants Fannie Mae and Freddie Mac, pledging up to $200 billion to back their assets.

Jobless aid Congress last week approved an extension of up to three months for expiring unemployment benefits. The cost is nearly $6 billion.

Federal Reserve In the past year the Fed has increased its lending and purchases of debt by $900 billion, to almost $2.2 trillion.

The federal deficitIt’s the difference between what the government received from taxes and other revenue and what it spent. In fiscal 2008, which ended Sept. 30, the budget deficit was $455 billion, quite a difference from 2007’s $161.5 billion. Just one month into fiscal 2009, the budget deficit had already reached $232 billion, including $115 billion going directly on the deficit ledger for bank stock purchases as part of the financial bailout. The deficit for fiscal 2009 could reach $1 trillion.

Source

Millionaires reap farm payments; Nobody checking incomes

Investigators say the problem will get worse

By LARRY MARGASAK
THE ASSOCIATED PRESS

WASHINGTON — A sports team owner, a financial firm executive and residents of Hong Kong and Saudi Arabia were among 2,702 millionaire recipients of farm payments from 2003 to 2006 — and it’s not even clear they were legitimate farmers, congressional investigators reported Monday.

They probably were ineligible, but the Agriculture Department can’t confirm that, since officials never checked their incomes, the Government Accountability Office said.

The Agriculture Department cried foul: It said the investigators had access to Internal Revenue Service information on individuals that the department is not permitted to see.

John Johnson, deputy administrator in the department’s Farm Service Agency, said officials there are in touch with the IRS to devise a system for including tax information in its sampling program to determine eligibility.

He added that 2,702 recipients cited by the GAO was a small percentage of the 1.8 million recipients of farm payments from 2003 through 2006.

The investigators said the problem will only get worse, because the payments they cited covered only the 2002 farm bill subsidies.

The 2008 farm legislation has provisions that could allow even more people to receive improper payments without effective checks, they said.

There are three main types of payments: direct subsidies based on a farmer’s production history; countercyclical payments that kick in when prices are low and disappear when they recover; and a loan program that allows repayment in money or crops.

The 2002 farm bill required an income test for the first time.

An individual or farm entity was ineligible if average adjusted gross income exceeded $2.5 million over three years — unless 75 percent or more of that income came from farming, ranching and forestry.

According to the report, the 2,702 recipients exceeded the $2.5 million and got less than 75 percent of their income from these activities.

The payments to them totaled more than $49 million.

“USDA has relied principally on individuals’ one-time self-certifications that they do not exceed income eligibility caps, and their commitment that they will notify USDA of any changes that cause them to exceed these caps,” the GAO said.

The report said Agriculture field offices have been able to request that recipients submit tax returns for review.

But the administrator in charge of the payment programs, Teresa Lasseter, told the GAO, “Requiring three years of tax returns initially from over 2 million program participants was not a viable option or cost-effective alternative.”

The GAO said 78 percent of the recipients resided in or near a metropolitan area, while the remaining 22 percent resided in large towns, small towns and rural areas.

Further, the investigators said the Agriculture Department should have known that 87 of the 2,702 recipients were ineligible because it had noted in its own databases that they exceeded the income caps.

The GAO said it was prevented by law from identifying individuals cited in its report, but the investigators offered these examples of likely improper payments:

A founder and former executive of an insurance company received more than $300,000 in farm program payments in 2003, 2004, 2005 and 2006 that should have been subject to the income limits.

An individual with ownership interest in a professional sports franchise received more than $200,000 for those same years that should have been barred by the income limits.

A person residing outside the United States received more than $80,000 for 2003, 2005 and 2006 on the basis of the individual’s ownership interest in two farming entities.

A top executive of a major financial services firm received more than $60,000 in farm program payments in 2003.

A former executive of a technology company received about $20,000 in years 2003, 2004, 2005 and 2006 that were covered by the income limits.

This individual also received more than $900,000 in farm program payments that were not subject to those limitations.

The investigators also found nine recipients resided outside the United States — in Hong Kong, Saudi Arabia and the United Kingdom, for example.

The remainder resided in 49 of the 50 states, the District of Columbia and the Virgin Islands.

Five states — Arizona, California, Florida, Illinois and Texas — accounted for 36 percent of the recipients and 43 percent of the $49.4 million in farm program payments.

Source

We must also remember that $2.3 Trillion they admitted to losing on September 10, the day before 9/11 still hasn’t been found either.

One has to wonder how much money, has been lost in other areas as well?

“Accountability” is not something the Bush Administration took to seriously.

Bush accountability is gone: just a reminder

June 7, 2007

Somebody owes me a Diet Coke.

That’s what was at stake in a wager a gentleman and I made over dinner at a restaurant in Baton Rouge. He had asked if I didn’t agree that Attorney General Alberto Gonzales, then, as now, under fire in the scandal over the alleged politically motivated firing of nine U.S. attorneys, would soon be forced to step down. I said no. He said Gonzales would not last six weeks. We made a bet on it.

This was 11 weeks ago. Gonzales, of course, is still in office. In fact, President Bush last month reiterated his support for his embattled friend, who faces a possible Senate no-confidence vote later this month.

I wish I could say that in wagering on Gonzales’ political survival, I relied upon some insider knowledge, some astute reading of the tea leaves based on long years of watching the political scene. Truth is, what I relied on is a belief in the utter shamelessness of George W. Bush’s administration.

No, Team Bush does not own the patent on shamelessness. Some of us thought it bespoke an alarming imperviousness to embarrassment when Bill Clinton, caught lying about being serviced by a young intern in the Oval Office, chose to brazen his way through the resulting furor rather than resign.

But if the Bush people did not invent shamelessness, they have refined it to a level that once seemed impossible. So much so that this shamelessness, this indifference to perception, this abysmal lack of what Thomas Jefferson called “a decent respect to the opinions of mankind” may prove to be the administration’s defining characteristic, its calling card in matters both grand and small. Granted, shamelessness will have to battle hubris and incompetence to earn that distinction, but still …

No administration in living memory has shown Team Bush’s ability to reverse itself so blithely, to deny the obvious so serenely, to ignore precedent, propriety and responsibility with such placid unconcern for consequences or public perception.

Weapons of mass destruction not found where you once guaranteed they would be? Pretend you invaded Iraq for other reasons.

“Stay the course” proving an ever more threadbare strategy? Deny it was ever your strategy at all.

FEMA director presides over a botched disaster relief effort that costs hundreds of American lives? Praise him for doing “a heckuva job.”

CIA director presides over intelligence gathering failures that cost thousands of American lives? Give him a Medal of Freedom.

And so on.

If you’re looking for accountability, you’re looking in the wrong White House. Or as Bush once put it, “We had an accountability moment, and that’s called the 2004 elections.” In other words, if you win the election you can do whatever you want and it doesn’t matter what anyone else thinks.

So I am not surprised that, despite growing evidence he allowed the Justice Department to become a wholly owned subsidiary of the Republican Party, Alberto Gonzales still has a job with the federal government. To be honest, I am more surprised that Donald Rumsfeld, Paul Wolfowitz and former FEMA chief Michael Brown do not.

And ain’t that a kick in the head? We have reached a pass where one is almost shocked to see people held to answer for scandal and ineptitude. Where one is taken aback at the notion that failure carries a price. And where tough talk and a “What, me worry?” smugness now routinely pass for iron resolve and moral clarity.

If you had told me in 2001 that this would be the state of things six years later, I’d have laughed in your face.

I’d have lost a lot of Diet Cokes on that.

Source

GAO: Labor Dept. Misled Congress

By Carol D. Leonnig

November 25, 2008

The Labor Department gave Congress inaccurate and unreliable numbers that understated the expense of contracting out its employees’ work to private firms, according to a Government Accountability Office report released yesterday.

The department’s decisions in allowing contractors to compete for bureaucrats’ work — known as “competitive sourcing” — also demoralized workers, according to most of the 60 agency employees interviewed by the GAO.

“DOL’s savings reports are not reliable: a sample of three reports contained inaccuracies, and others used projections when actual numbers were available, which sometimes resulted in overstated savings,” the GAO report said. “Because of these and other weaknesses, DOL is hindered in its ability to determine if services are being provided more efficiently as a result of competitive sourcing.”

Labor Secretary Elaine L. Chao began having some agency workers compete for their jobs in 2004, but since then few employees have actually lost their jobs and had their pay cut as a result of the privatizing effort, GAO found. Of the 314 federal workers who had a job change as a result of competitions with private firms, 263, or 84 percent, were either reassigned to positions with the same title and pay or were promoted. Of the 16 workers who were demoted, 14 kept their same professional grade or pay.

Twenty-two employees were demoted or laid off, and all were African American. An additional 29 employees left voluntarily.

Sen. Tom Harkin (D-Iowa) and Rep. David Obey (D-Wis.), chairmen of their chambers’ appropriations subcommittees with jurisdiction over the Labor Department, asked for the report and urged Congress not to fund the competition program until the GAO provided the answers. They issued a statement yesterday saying the review documented “the negative impact the Bush Administration’s failed policies have had” on the agency.

“Under the direction of this White House, the Department of Labor has increasingly attempted to move work performed by Federal employees to private contractors” and, in so doing, hurt workers’ morale and “grossly overstated savings,” they wrote. “We look forward to working with the Obama Administration to strengthen the Department of Labor as it undertakes the critical missions of making sure our workplaces are safe; protecting employee pensions, health benefits and rights; and providing workers with the skills they need to compete successfully in the 21st century economy.”

Patrick Pizzella, an assistant secretary who oversees competitive sourcing, told the GAO in a letter last month that the department agrees tracking costs and performance more systematically would give the agency a more accurate picture of the usefulness of competitive sourcing. “As the GAO report indicates, DOL has made progress developing a system to assess the performance of winning service providers in our competitive sourcing program, and DOL’s competitions rarely resulted in lost jobs or salary reductions for DOL employees,” he said yesterday.

Pizzella said the Office of Management and Budget does not require that fuller counting; the GAO urged the OMB to require agencies to do so.
Source

Will the lies ever end?

Lessons learned in Icelandic crisis

November 24, 2008,

A city council finance chief has admitted people have questioned their own roles in the Icelandic bank saga which has seen £42m of council cash frozen overseas.

John Beevers, head of financial projects at Nottingham City Council, said lessons are being learned about credit ratings after the authority ploughed vast sums of money into Landsbanki, Glitnir and Heritable just months before they ran into trouble.

Mr Beevers told the council’s Overview and Scrutiny Committee: “It [the Icelandic banks crisis] has provided more focus around the impact of credit ratings and what they show and whether they have been sufficient.

“There is a number of people that, as things come out, are looking at whether their role in it has been appropriate.

“I think we are taking on board the lessons we are learning.”

He also said there had been changes in some of the banks’ credit ratings around the time the investments were made.

“There had been some negative rating outlook changes on some of the banks,” he told the meeting. “That has not developed through to a complete meltdown of the bank itself.”

He later added: “Our actions are reinforced by over 100 other institutions. If the message were so loud and clear we would have been a number of two or three.”

The meeting heard the council was continuing to use the same credit rating agency, Butlers.

Deputy chief executive Carole Mills-Evans said an update on recovering the money was expected in the next “couple of weeks”.

She claimed that it would have been “almost impossible” for the council to get its money back before the end of its agreement with the banks.

“There is some talk that some councils have exit clauses. We have yet to find one council that that applies to.”

Source


UK anti terror laws right move against Icelandic banks?

“Not all conversations concerning this matter have been made public . . . When the matter is investigated, other conversations will have to be made public. I am aware of what they are about and I am aware of what in fact determined the position of the UK authorities,” the Financial Times quotes Icelandic central bank chairman David Oddsson as saying.

The implication, the article continues, is that the UK was right to use anti terror laws to freeze Icelandic assets at the beginning of the banking crisis in October. Furthermore, the FT states that any such revelations could damage any potential lawsuit filed against the British government by Reykjavik. The Icelandic government has hired Lovells, a UK law firm to investigate whether London acted illegally and significantly and unnecessarily worsened the economic crisis already unfolding.

Oddsson’s comments were made during a speech to the Iceland Chamber of Commerce late last week. As a former long-standing Prime Minister, current head of the central bank and prominent Independence Party figure, Oddsson is seen as a close ally of PM Geir Haarde, who once served as his minister of finance.

Oddsson and Haarde, among others, are credited with liberalising the Icelandic financial sector and also blamed by many for allowing the current crisis to unfold. As many as 90 percent of people now want Oddsson replaced, and a Frettabladid poll this weekend revealed that 70 percent of respondents no longer support the current government.

David Oddsson protests his innocence however; stating in his speech that he had been warning the government on the state of the banks for 18 months and was repeatedly ignored.

He also described the inquiry recently announced by the government as “a whitewash”.

“The investigation . . . is in all respects unsuitable and insufficient. It is almost laughable to see the posturing in the entire organised propaganda campaign which has been carried out by those who bear the prime responsibility,” he said.

Source

Related

Who Could Have Predicted Revolution in Iceland?

Iceland’s Economic Meltdown is a big Flashing Warning Sign


Iceland isn’t the only one needing help: Point of Interest.

The United States has asked four oil-rich Gulf states for close to 300 billion dollars to help it curb the global financial meltdown, Kuwait’s daily Al-Seyassah reported Thursday.

Quoting “highly informed” sources, the daily said Washington has asked Saudi Arabia for 120 billion dollars, the United Arab Emirates for 70 billion dollars, Qatar for 60 billion dollars and was seeking 40 billion dollars from Kuwait…….

Seems Because of Capitalism we have a planet full of beggars.

The lesson to be learned from all of this is “Capitalism” SUCKS.

Simple and to the point.

A Lesson the Entire would should have learned by now.

Published in: on November 25, 2008 at 3:13 am  Comments Off on Lessons learned in Icelandic crisis  
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Citibank Bailout May Leave You Holding the Bag in More Ways Than One

Citigroup Bailout Leaves Shareholders in the Cold

November 24 2008

Citibank news is good for the upper management group at Citigroup! A Citibank bailout marks the third time in recent months that Uncle Sam – and by extension you and I – offers a helping hand and million of dollars in an attempt to keep a financial institution from going under.

Citibank Bailout Prevents Citibank Bankruptcy … For Now

WMDT, ABC reports that $20 billion from the $700 billion bailout package will indeed be invested in Citibank. In return, Uncle Sam – and you and I – receive $7 billion of “preferred shares.” But wait, there is more!

The Washington Post reports that in addition to the bailout funds, Uncle Sam will also take on the role of protector against future losses. While Citigroup would have to eat the next $29 billion in losses it shows, the United States government will cover “most of the losses beyond that amount.”

Wagging tongues assert that what is needed, really, is Citibank bankrupt, but the Citibank bailout in addition to the prior investment of $25 billion that Uncle Sam already dropped into Citigroup, may halt this process.

Citigroup Bailout and Its Effect on Shareholders

The Citigroup bailout is not as favorable for shareholders as early estimates had hoped. This Citi bailout package is supposedly going to require a curtailing of executive level pay, but it most certainly decreases share dividends to $0.01/share/quarter for a period of three years.

Citibank Bailout Rewards Bad Behavior

Citibank business practices have been making headlines over the last decade, most notably its 2004 short sale on the European bond market and its theft of funds from 53,000 credit card customer accounts.

Lest you forget, it was Citigroup’s 1998 lobbying efforts, as reported by Open Secrets, that paved the way for banks to get involved in other forms of business such as insurance. Citibank lobbyists were also front and center when bankruptcy reform was discussed, and consumers currently hoping for Chapter 7 relief know how much more difficult this process has become.

Beholden to politicians, Citibank has heavily investment in the American political process, favoring the Democratic Party with $2,248,481 versus the Republican Party which only received $1,483,884. This totals $3,736,915 in overall political donations that perhaps could have been better spent protecting the company from its impending losses.

Citibank Bailout May Not Halt Layoffs

There is no word if the Citigroup bailout will prevent the loss of more than 50,000 Bay Area jobs the San Francisco Chronicle reported on last week.

Source

U.S. agrees to invest $20 billion to bailout Citigroup

November 24 2008

Citigroup Inc. reached an agreement with the U.S. Treasury, the Federal Reserve Board and the Federal Deposit Insurance Corp. over the weekend that will inject $20 billion worth of new capital into the company.

This is in addition to the $25 billion infusion already approved by the government through the Troubled Assets Relief Program (TARP).

Citi (NYSE: C) officials in New York say the move will strengthen the company’s capital ratios, reduce risk and increase financial liquidity. The plan was unanimously approved by the lender’s board of directors.

Under the terms of the agreement, the U.S. Treasury Department will invest $20 billion in Citi preferred stock under the TARP.

The TARP is the $700 billion financial rescue package approved by Congress in September. The Treasury Department is offering to purchase up to $250 billion worth of senior preferred shares of U.S.-controlled banks and savings associations. The program is designed to provide financial institutions with fresh capital in exchange for the government taking an equity stake in the lenders.

Citi will also issue $7 billion in preferred stock to the U.S. Treasury and the FDIC as payment for a government guarantee on $306 billion worth of securities, loans and commitments backed by residential and commercial real estate and other assets.

The guarantee, Citi officials say, will free up an additional $16 billion worth of capital for the company.

Citi has also agreed to issue warrants to the U.S. Treasury and FDIC for some 254 million shares of the company’s stock at a strike price of $10.61. Citi has also agreed to limit its quarterly common stock dividend to one-cent per share for the next three years.

Under this agreement, Citi will assume any losses on the portfolio for up to $29 billion on a pretax basis. The government agencies, in turn, will assume 90 percent of any losses above that level.

Citi has also been provided with expanded access to the Federal Reserve’s Primary Dealer Credit Facility and the discount window. This will provide additional liquidity for the lender, if needed. Citi also has access to the Federal Reserve’s Commercial Paper Funding Facility.

The agreement specifies that the company’s executive compensation plan, including bonuses, must be submitted to and approved by the U.S. government.

“This weekend, the U.S. government and Citi worked together in an unprecedented way to address market confidence and the recent decline in Citi’s stock price,” Citi CEO Vikram S. Pandit said in a statement. “We reached an agreement based on an innovative market solution to further strengthen our capital ratios, reduce risk, and increase liquidity. We appreciate the tremendous effort by the government to assure market stability.”

A week ago, Citi announced that it plans to eliminate 53,000 jobs as the company works to stem financial losses. The company posted a third-quarter loss of $2.8 billion.

The lender employs 17,000 people in Texas. Citi operates a call center in Northwest San Antonio and has 10 Citibank branches in the city.

In October, the company lost a bidding war with Wells Fargo (NYSE: WFC) over the purchase of Wachovia Corp. Wells Fargo is in the process of buying Wachovia for $15.1 billion.

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