By Geneva Centre
GENEVA, Jun 20 2018 (Geneva Centre)
Dr. Hanif Hassan Al Qassim, Chairman of the Geneva Centre for Human Rights Advancement and Global Dialogue, has appealed to international decision-makers to express greater solidarity to destitute refugees from the Arab region and to work jointly to address the protracted refugee crisis.
The Geneva Centre’s Chairman made this call to action on the occasion of the 2018 World Refugee Day which is observed annually on 20 June. Dr. Al Qassim highlighted that there are more than 5 million refugees in the Arab region owing to the proliferation of conflicts and the rise of violent extremism in Syria, Iraq, Libya and Yemen. The efforts of Jordan and Lebanon in hosting and in providing assistance to refugees – that may add up to 25% of their own nationals – stand out as shining examples of countries driven by the principles of international solidarity and justice, Dr. Al Qassim remarked.
In relation to the situation in Europe, the Geneva Centre’s Chairman said the inflow of displaced people has been exploited by a populist tidal-wave fuelling xenophobia and in particular Islamophobia. Although the arrival of displaced people to Europe only add up to 0.2% of Europe’s population, human solidarity and justice are being frayed by the fear of the Other. The campaign of fear waged against migrants and refugees is bringing back the spectre of nationalism and chauvinism threatening international cooperation and peace over the long run, he observed.
In conclusion, Dr. Al Qassim appealed to countries in the West and in the Middle East to step up their joint efforts to eliminate the root causes which have fuelled extremism. Peace and stability in the Middle East need to be restored before refugees can safely return to their home societies. This calls for a radical political change of approach in problem solving in the region. The world society must express greater solidarity for refugees worldwide, he highlighted.
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By WAM
ABU DHABI, Jun 20 2018 (WAM)
Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said that the oil and gas industry stands on the threshold of an historic step change in the demand for its products, driven by growth in every major market.
Speaking at the opening keynote session, at a seminar titled, “Sustainable Global Energy Future” of the 7th OPEC International Seminar, in Vienna, Dr. Al Jaber said that the demand for oil and its derivative products is growing and the future of the oil and gas industry is bright due to robust global economic growth.
"While we can never predict the future price of oil, the global economic outlook gives us reasons for optimism. Every major economy is growing and this is reinforcing demand for every product we supply along the extended hydrocarbon value chain."
Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO
“While we can never predict the future price of oil, the global economic outlook gives us reasons for optimism,” he said. “Every major economy is growing and this is reinforcing demand for every product we supply along the extended hydrocarbon value chain.”
Dr. Al Jaber noted the positive role that OPEC and non-OPEC producers have played together to help rebalance the market and re-stabilise prices.
“This is a success story based on trust and collaboration that is worth commending and acknowledging. In fact, it proves, once again, that OPEC’s ability to apply a constructive influence over the market is as strong today as it has ever been,” he said.
The ADNOC Group CEO was joined in the Keynote session by Mohammed bin Hamad Al Rumhy, Omani Minister of Oil and Gas; Shri Dharmendra Pradhan, Indian Minister of Petroleum and Natural Gas; Bob Dudley, Group Chief Executive of BP; Patrick Pouyanne, Chairman of CEO of Total; Claudio Descalzi, CEO of Eni; Scott D Sheffield, Executive Chairman of the Board of Pioneer Natural Resources; and Nizar Mohammed Al-Adsani, Deputy Chairman and CEO of Kuwait Petroleum Corporation.
During the session, Dr. Al Jaber said that ADNOC had learned the lessons of the recent past to re-imagine what a modern, progressive, integrated oil company should look like.
“We are embedding efficiency, commerciality and innovation into every aspect of our business. We will leave no stone unturned when it comes to optimising costs and no avenue unexplored in the search for value creation,” Dr. Al Jaber said, adding that while ADNOC is well on track to expand oil production to 3.5 million barrels a day, it would adhere to OPEC quotas that “ensure sustainable supplies, stable prices and a fair, commercial return.”
Highlighting ADNOC’s plans to invest US$45 billion to transform the Ruwais industrial complex into the largest integrated refining and petrochemicals site in the world, to maximise the value of the company’s downstream potential, Al Jaber said that ADNOC is “more than ready to collaborate with like-minded, progressive and forward thinking partners to capitalise together on the massive potential of our time.”
Earlier, the two-day International Seminar had been officially inaugurated by Suhail Mohamed Al Mazrouei, UAE Minister of Energy and Industry, who is the President of the OPEC Conference, following welcome remarks by Mohammad Sanusi Barkindo, Secretary-General of OPEC. The opening ceremony was attended by energy ministers, heads of delegations and oil and gas industry CEOs.
An OPEC spokesperson said that the International Seminar is intended to provide fresh impetus to key petroleum industry issues and challenges, helping to enhance existing avenues of dialogue and cooperation, while stimulating new ones. It will seek to reinforce OPEC’s longstanding commitment to strive towards a secure and stable market in support of a healthy global economy. It will also highlight the need for continuing promotion of cooperation and dialogue with all oil industry stakeholders, including producers and consumers.
Some of the topics to be discussed include global energy cooperation, technological breakthroughs, energy transition, industry investments, as well as the world economy and the future outlook for the oil industry.
WAM/Rola Alghoul/Tariq alfaham
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By Jan Egeland
OSLO, Norway, Jun 20 2018 (IPS)
Turkey, Bangladesh and Uganda alone received over half of all new refugees last year. Never before has the world registered a larger number of people displaced by war and persecution.
International responsibility-sharing for displaced people has utterly collapsed. Rich countries are building walls against families fleeing war, at the same time as less money is available for aid to people in conflict areas.
The number of people forced to flee reached 68.5 million at the start of 2018, according to figures from the UN Refugee Agency (UNHCR) and NRC’s Internal Displacement Monitoring Centre. This is as many people as there are living in the United Kingdom.
International cooperation and peace diplomacy are in deep crisis. The number of people displaced worldwide is increasing for the sixth year in a row, and fewer people are safely returning home.
Forty million people are displaced within their own countries, and another 28.5 million have crossed a border and become refugees.
Turkey was the country that received most new refugees last year – 700,000 people. It now houses over 3.8 million refugees, most of them from Syria. In comparison, the rest of Europe as a whole received about half a million refugees last year, and the US received about 60.000.
When so few asylum seekers are arriving in Europe and the US, we have the responsibility to increase our support to less rich countries that are currently hosting a large number of refugees, like Bangladesh, Lebanon and Uganda, and increase the number of people we receive for resettlement.
The safety net we put in place after Second World War and which has provided millions of refugees with protection, is now being upheld by an increasingly small number of countries.
If these countries do not receive sufficient support, the whole protection system will unravel. If so, this will have dramatic consequences not only for the people affected, but also for the stability and security in many parts of the world.
By May this year, Uganda had only received 7.0 percent of the money needed for UN and other organisations to be able to provide necessary support to the large number of refugees from South Sudan and DR Congo. In Bangladesh the equivalent figure was 20 percent.
In addition to economic support to countries receiving a large number of refugees, 1.2 million refugees need to be resettled in a new country, according to the UN Refugee Agency (UNHCR). These are people that are not safe where they currently are. Last year the UN member countries only received about 103.000 resettlement refugees.
The consequences of the lack of responsibility sharing were evident this month when the rescue vessel Aquarius with 629 refugees and migrants was denied entry to Italian ports.
When people in need at sea become pieces in a political game, it is a grotesque symbol of the current lack of a proper system for international responsibility sharing.
NRC is concerned to see new border barriers raise in front of people fleeing war and persecution, and the refugees’ rights being under threat.
In many of the countries NRC work, people in power are referring to how European countries are closing their borders, when they want to defend their decision to close their own borders.
We have to end this race to the bottom, and rather let us inspire by generous recipient countries like Uganda, where vulnerable refugees are being protected.
Facts:
• 68.5 million people were displaced at the entry of 2018.
• 40 million people are displaced within their own country, according to NRC’s Internal Displacement Monitoring Centre (IDMC)
• 28.5 million people have fled their country and are refugees or asylum seekers, according to the UN Refugee Agency (UNHCR).
• In 2017, 3.6 million sought protection in another country, either by themselves or through resettlement programs. Turkey received close to 20 percent of all new refugees in 2017, Bangladesh 18 percent, Uganda 15 percent and Sudan 14 percent.
• 667,000 refugees returned to their home country last year. Most returned to Nigeria (283,000)
Sources: UNHCR, NRC’s Internal Displacement Monitoring Centre (IDMC).
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Excerpt:
Jan Egeland is Secretary-General of the Norwegian Refugee Council and former United Nations Undersecretary-General for Humanitarian Affairs and UN Emergency Relief Coordinator
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By Tharanga Yakupitiyage
UNITED NATIONS, Jun 20 2018 (IPS)
While populations have seen and undergone changes since the beginning of time, one trend in particular is unfolding across the world: less children, older people. In an effort to tackle the complex issue in Asia, government officials are convening to help create a sustainable society where no one is left behind.
In Mongolia’s capital of Ulaanbaatar, 40 Members of Parliament (MPs) are gathering to discuss sound policy approaches to population issues such as ageing and fertility transition which threaten the future of many Asian nations.
“This is an essential step to mitigating the impact of ageing on social systems and structures to achieve SDGs (Sustainable Development Goals),” the UN Population Fund (UNFPA) Mongolia’s Director Naomi Kitahara told IPS.
By 2030, Asia could be home to over 60 percent of the total population aged 65 years or older worldwide, consulting group Deloitte calculated.
According to the UN Economic and Social Commission for Asia and the Pacific (ESCAP), East and Northeast Asian countries have the largest such population, accounting for 56 percent of all older persons in the Asia-Pacific region and 32 percent in the world.
Not only is the scale of population ageing in Asia unprecedented, but so is its speed.
In France, the percentage of older people grew from 7 percent to 20 percent in approximately 150 years. However, the same demographic shift was seen in Japan within just 40 years.
Kitahara particularly pointed to Japan’s case as a prime example of population issues and their repercussions.
According to the United Nations, Japan’s fertility rates were approximately 2.75 children per woman in the 1950s, well above the total fertility rate of 2.1 which has been determined to help sustain stable populations.
Today, Japan’s birth rate is 1.44 children per woman.
The National Institute of Population and Social Security Research found that if such trends continue, Japan’s population is expected to decrease from 126 million today to 88 million in 2065 and 51 million by 2115.
With fewer children and young adults, a vicious cycle is set in motion: a smaller labor force and spending decreases which weaken the economy and discourage families from having children, which then weakens the economy further.
“Without the younger generation, this system will not be able to maintain,” Secretary-General of the Asian Population Development Association (APDA) Dr. Osamu Kusumoto told IPS, highlighting the importance of fertility research.
“To achieve the SDGs, an understanding of fertility transition is essential. Proper social policies on fertility to mitigate rapid changes have to be considered,” Dr. Kusumoto said.
“High fertility and extremely low fertility may harm the society,” he added.
At the same time, as people have a higher life expectancy, the elderly now make up 27 percent of Japan’s population in comparison to 15 percent in the United States.
This means less revenues and higher expenditures for the government, and when the number of older persons grows faster than the working-age population, there are less funds for pensions and social security, thus creating an even weaker economy.
As many Asian countries are expected to follow in Japan’s footsteps, the parliamentarian gathering seems come at a critical juncture.
“This meeting gives countries the opportunity to learn from Japan’s current challenges, as well as successes…[it] provides an opportunity for other countries to share their experience,” Kitahara said.
And it is no coincidence that the meeting is taking place in Mongolia.
Mongolia, unlike many other Asian nations, has had a stable fertility rate of 3.1 and a slowly ageing population of 6 percent. This is in large part due to its population policies which have allowed for not only population growth, but also economic growth.
For instance, the recently approved Youth Development Law supports young Mongolians’ needs in relation to the economy, employment, health, and education including through the Youth Development Fund which provides access to development fund opportunities.
The new policy has also led to the establishment of youth development centers across the country which focus on skills development, helping young people grow into resilient and self-sufficient adults.
The East Asian nation is among the few countries in the region to have a law designated specifically for young people.
However, more must be done in Mongolia, Kitahara noted.
“To achieve the SDGs by 2030 Mongolia must give more attention to social and demographic issues, as well as giving and spending budgets for social and environmental aspects of sustainable development,” she told IPS.
“For instance, there is not sufficient funding to meet the need for modern contraceptives, and this has led to increased unmet need for family planning and reduced contraceptive prevalence,” Kitahara added.
Despite having been one of nine countries in the world that achieved the Millennium Development Goal’s (MDG) maternal mortality reduction target, Mongolia’s maternal mortality rate doubled in 2016 largely due to state budget cuts and a lack of access to contraception.
The role of parliamentarians is therefore critical in not only making laws, but also providing state budgets and fiscal management, issues that are set to be discussed during the meeting in Ulaanbaatar.
Kitahara also emphasized the need to employ a human rights lens in population policies and programs, giving individuals and couples to choose when and how many children they wish to have.
In an effort to address its ageing population and a shrinking labor force, China is now considering abandoning its two-child policy which put a cap on a family’s size.
The controversial policy contributed to its uneven demographics as the East Asian nation predicts that approximately a quarter of the population will be over the age of 60 by 2030.
It has also led to a gender imbalance with over 30 million more men than women.
Kitahara highlighted the need to provide equitable access to quality family planning information and services, in line with the SDGs.
“The ability to have children by choice and not by chance transforms communities, lives and countries…by ensuring that the rights of women and girls are respected, and they have access to reproductive health information and services, including contraception and family planning,” she concluded.
Dr. Kusumoto echoed similar sentiments to IPS, stating: “Nobody should interfere in other’s lives, but a constructive healthy society is essential to future of each society.”
Organized by the Asian Population and Development Association (APDA), the “Strengthening the Capacity of Parliamentarians for the Achievement of the SDGs: Ageing, Fertility and Youth Empowerment” meeting is also supported by the UN Population Fund (UNFPA) and the International Planned Parenthood Federation (IPPF).
Among the countries participating in the 12-13 June meeting is Bhutan, Bangladesh, China, India, Indonesia, Lao, Japan, Pakistan, Philippines, Sri Lanka, Thailand and Vietnam.
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By International Organization for Migration
Ulaanbaatar, Jun 19 2018 (IOM)
IOM, the UN Migration Agency, in collaboration with the Consular Department of Mongolia’s Ministry of Foreign Affairs, has organized a pre-departure training on human trafficking for 31 Mongolian consular officers.
The training in the Mongolian capital was designed to help the officers better understand the crime of trafficking in persons within a human rights framework – enabling them to identify victims and offer better protection to Mongolian nationals abroad. It will also help them to process suspect applications for Mongolian visas.
The US State Department’s 2017 Trafficking in Persons Report classifies Mongolia as a “Tier 2” country that is making significant efforts to eliminate human trafficking, but needs to do more. It notes that Mongolian victims of forced labour have been identified in Turkey, Kazakhstan and Israel. Victims of sex trafficking have been identified in the Republic of Korea; Japan; China; Hong Kong SAR, China; Malaysia; Germany; Sweden; and the United States. It also cites cases of forced labour from China and the Democratic People’s Republic of Korea working in Mongolia.
“The training was an excellent forum for the participants to discuss how to identify trafficked people in an effective and timely manner by looking at their profiles and learning from case studies about various forms of trafficking for sexual exploitation and forced labour. It will also help them to spot signs of potential trafficking during the visa application process,” said Etienne Micallef, IOM’s Officer-in-Charge for IOM China and Mongolia.
“Consular protection staff play a critical role in combating human trafficking through victim identification. But they also need to be able to provide support to victims, organize referrals and, if necessary, coordinate the return of victims to their country of origin in a dignified and prompt manner,” he added.
For more information, please contact Zuzana Jankechova at IOM Mongolia. Email: zjankechova@iom.int
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By Enrique Yeves
ROME, Jun 19 2018 (IPS)
We worry about how we can continue to put food on our tables; and yet one-third of food is never eaten, instead being lost or wasted.
We worry about eating properly, and yet in many countries , poor nutrition, obesity and micronutrient deficiencies are increasingly common. This trend is taking place in the Americas, Oceania, Asia, Africa and in Europe.
What is to be done? First, we must understand how each of these issues is interlinked and how they can be alleviated using an integrated approach involving agriculture, education, social services, health and infrastructure. If we channel development assistance in an integrated way, rather than towards specific sectors, we are more likely to achieve sustainable changes – these in turn can ease the burden of coordination and enhance our ability to help governments to achieve more effective and long term improvements.
For this to happen, we need the political will of governments to achieve change, coupled with adequate resources.
These issues are critical to achieving the Sustainable Development Goals (SDGs). Governments committed to the SDGs in 2015, pledging to end hunger, extreme poverty, and other social, environmental and health evils that have left over 815 million people undernourished, and in many areas barely surviving in squalid and inhumane conditions.
The role of governments is central. Only they can exert the political will to enforce the required changes and to set aside the critically needed resources.
The role of development organizations, including the UN, non-governmental organizations and international and regional financial institutions, is also critical. They exist to support governments determined to achieve the SDGs and in so doing to improve their overall social, economic and political wellbeing.
The Food and Agriculture Organization of the United Nations (FAO) has been working for over 70 years on both the policy front and on the ground, doing so globally, regionally, nationally and at the community level. We have been documenting the state of food insecurity in the world, exploring and emphasizing the all-important role of small producers in achieving food security. Small-scale farmers, fishers and foresters, constituting a vast number of the rural poor, are vulnerable to environmental and market forces often beyond their control. Yet it is they who, using tried and tested traditional systems enhanced where possible by improved technologies adapted to their needs, hold the keys to a world without hunger As FAO has documented, family farmers produce more than two-thirds of the world’s food, with smallholders producing more per unit of land.
In the long run, tackling the direct relationship between mass migration and poverty and instability entails addressing basic challenges in the countries that people are leaving, and by providing more integrated assistance to refugees to improve their health and capacity to earn livelihoods in the receiving countries.
An important but frequently underplayed aspect for governments in developing countries is their need for assistance in defining and quantifying their present situation through internationally accepted benchmarks. Reliable statistics are crucial in order to measure progress towards attainment of the SDGs and general progress in development.
FAO delivers a lot of services to its members in this regard. And the effort produces globally relevant information, some of it alarming. Right now, for example, the global number of undernourished people is estimated at 815 million and that figure is rising for the first time in more than a decade. The number of countries reliant on external food assistance is now 39, the highest it’s ever been since FAO started tracking.
Eradicating hunger is a lynchpin for the entire 2030 Agenda, and governments must raise awareness about why achieving the SDGs is critical. This effort will both enable and benefit from women’s empowerment.
Programmes such as food for work, food stamps or a mix of both – especially in situations where conflict or natural disaster have impacted local production – are all part of the toolkit and are demonstrably efficient in fostering women’s power and interests. Increasing access to food is a building block to goals ranging from nutrition to women’s rights and assuring resilient livelihoods for producers.
What is essential is to find synergies – not only to avoid wasteful duplication but to forge the basis for sustainable solutions. Otherwise our worries are in vain.
Enrique Yeves is Director of Communications, Food and Agriculture Organization of the United Nations
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By Emily Thampoe and Carmen Arroyo
UNITED NATIONS, Jun 19 2018 (IPS)
At least 2.5 million migrants were smuggled worldwide in 2016, generating an income for smugglers which ranged between $5.5 billion and $7.0 billion, according to a newly published report “2018 Global Study On Smuggling Of Migrants” by the Vienna-based UN Office on Drugs and Crime (UNODC)
Coincidentally, the release of the report followedthe arrival in Spain, over the weekend, of more than 600 stranded migrants, initially rejected by Italy’s new populist government which followed through on its anti-immigration campaign policies.
During the launch of the report, many member states’ representatives were also concerned with the rising role of social media in the illegal smuggling of migrants. The report concluded that many social media platforms are used to advertise smuggling services.
This promotion can be seen through published advertisements on Facebook or other platforms that migrants themselves make use of to share their opinions and experiences with smuggling services.
On the one hand, smugglers will often gander the attention of those thinking to migrate through the creation of enticing advertisements with very nice photos and also provide logistical information such as payment options and methods of getting in contact with them.
While migration has long been an issue handled by member states; since 2016, they decided to work together to produce the Global Compact for Migration through the UN. Intergovernmental negotiations are still ongoing and the states will meet next December in Morocco for the final Intergovernmental Conference.
The report, launched at the meeting,described as the “New York Launch of the First Global Study on Smuggling of Migrants” at the UN HeadquartersJune 13, discusses the topic of smuggling migrants in great lengths, but specially highlights the use of social media by both migrants and smugglers.
The researchers Kristiina Kangaspunta and Angela Me presented the report and discussed its results with the member states’ representatives attending the meeting.
According to the study, smuggling processes vary widely, depending on the area and the type of routes they follow. The duration of the journey, for example, depends on the travel -which can be through sea, air or land- and the organization.
The fastest journeys can last between 15 and 20 days, when smugglers give contacts to the migrants for the different steps of the route. This method is used specially to move migrants from South Asia into Greece.
Once again, this report raised the question of how to handle the migration crisis; and different individuals provided different answers. From UNODC the general claim, held by Kangaspunta and Me, was to encourage member states to share their information on migrants.
On the other hand, the International Organization for Migration (IOM) urged the international community to act faster in order to prevent the refugee crisis.
Oussama El Baroudi, Communications Officer at the IOM, told IPS: “Stopping one boat or more in the Mediterranean Sea is not an answer to Europe’s migration challenges. A comprehensive approach to migration governance is needed, combining opportunities for safe and orderly movement, humane border management and countering migrant smuggling and trafficking. Saving lives should always be our top concern. We must urgently find a means to help these rescued migrants and work for a comprehensive method of supporting migrants and States throughout Europe.”
Asked what IOM is proposing, he added: “IOM urges the EU to re-consider a revision of the Dublin regulation based on the European Parliament’s proposal, and to reach agreement in Council to ensure solidarity among member states fully respecting the provisions of the Treaties”.
However, for some non-profit organizations, member states act too slow to stop the migrant crisis. “European governments and institutions have not always coped well with this crisis and have struggled to provide safe, humane options and adequate care and support for those affected by the trauma of conflict and displacement”, Chelsea Purvis, Mercy Corps Policy and Advocacy Advisor, told IPS.
The Mediterranean is not the only area of concern when talking about the migrant crisis, as some nonprofit organizations emphasize.
David Kode, who leads campaigns and advocacy for global civil society alliance, CIVICUS, urged member states to rethink their approach to the Palestinian refugees: “There are currently about 7.0 million Palestinian refugees across the world including the approximately 1.3 million refugees in the Gaza strip. If some states continue to support Israel’s actions and other states remain silent in the face of the atrocities committed against Palestinians, very little will change as Israeli forces continue to use unnecessary, indiscriminate and disproportionate force against protesters”.
The role of social media
The smuggler’s key to success, says the report, depend on building trust with migrants. That’s why, often times “they have the same citizenship as the migrants they smuggle”, and they target the youth in small villages -which are more eager to believe them.
Other tactics used by smugglers may be deceptive and manipulative. Sometimes they use Facebook to pose as employees for NGOs or personnel who are involved with fake European Union organizations.
Some smugglers, especially in relation to Afghan migrants, have made themselves appear to be legal advisors for asylum on various social media platforms. El Baroudi, from IOM, shares his concern with IPS: “Criminal organized groups show unfortunately great capacity in exploiting new technologies to expand their benefits. Social networks are obviously a great leverage of coercion and may result into the trafficking of human beings as observed in Libya”.
On the other hand, migrants also take advantage of social media to discuss the specifics of migrating and using the services of smugglers. In some cases, social media may be used as a sort of “consumer forum” to share experiences with specific smugglers with fellow migrants; akin to a research tool.
For example, Syrians use social media extensively to research the smugglers, asking other migrants for information through Skype, WhatsApp or Facebook.
When asked how the UN, member states, and NGOs can use social media to counter illegal smuggling, Kangaspunta and Me replied that they must harness the power of social media in creating communities, in the same way that migrants warn each other of the risks of hiring a smuggling service.
Sharing her insights with IPS, Purvis said: ”Mercy Corps’ focus is on using technology and social media to help refugees on the move find safety, and our Signpost programme operates in Europe and Jordan. Using an online platform provides refugees with accurate and factual information in their own language about their options and how they can access services in the country they are in.”
El Baroudi shared with IPS what seems to be IOM’s goal: “The desired future outcome is that states, international organizations, and other actors work towards a situation where migration systems, at a minimum, do not exacerbate vulnerabilities but rather guarantee protection of the human rights of migrants irrespective of status, while migration takes place within the rule of law, and is aligned with development, social, humanitarian and security interests of states”.
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By Kingsley Ighobor
UNITED NATIONS, Jun 19 2018 (IPS)
From “Africa Reeling” to “Africa Rising,” there’s a new narrative for the African continent, now showing promising signs of sustainable growth under more stable governments.
McKinsey & Company, a global management consulting firm, predicts that Africa’s combined GDP will be $2.6 trillion by 2020 and that “Africa’s consumer spending by 128 million households with discretionary income is expected to be around $1.4 trillion.”
Among the countries attracting investors are Côte d’Ivoire, Benin, Morocco, Rwanda, Senegal and Togo.
But a new report from the United Nations Development Programme (UNDP) finds that Africa’s new wealth is increasingly concentrated in a few hands. Disappointingly, 10 of the world’s 19 most unequal countries are in sub-Saharan Africa.
Economic inequality, sometimes referred to as income inequality, is the unequal distribution of a country’s wealth. In highly unequal societies, such as South Africa, most people live in poverty while a minority amasses enormous wealth.
South Africa, the continent’s most developed economy, is also the world’s most unequal. Botswana, Namibia and Zambia are also among the top 19.
While Ethiopia’s economy is growing at 8%, it is impossible to miss its impoverished citizens in the streets of its capital, pulling on donkeys to transport goods while the rich and famous drive around in luxury cars.
Inequality drivers
In Nigeria “the scale of inequality has reached extreme levels,” reports Oxfam, a UK-based charity, in a study published in May 2017. Five of Nigeria’s wealthiest people, including Africa’s richest man, Aliko Dangote, have a combined wealth of $29.9 billion—more than the country’s entire 2017 budget. About 60% of Nigerians live on less than $1.25 a day, the threshold for absolute poverty.
“Everything [in South Africa is] was skewed racially—education, access to finance, and access to land,” maintains Haroon Bhorat, an economics professor at the University of Cape Town.
Several factors drive inequality in Africa, according to the group of economists who authored the UNDP report “Income Inequality Trends in Sub-Saharan Africa: Divergence, Determinants and Consequences”.
First, under Africa’s two-track economic structure, growth often occurs in sectors characterized by low absorption of unskilled labour, high earnings inequality and high capital share in total income.
The authors note that growth in those sectors may spur GDP headline growth but will also exacerbate inequality. It’s a rising tide that doesn’t lift all boats.
Second, infrastructure, human labour and land are highly concentrated in Eastern and Southern Africa. Third, authors of the report make reference to the “natural resource curse, an urban bias of public policy and ethnic and gender inequalities.” It appears, they note, that countries with abundant natural resources, such as Botswana and Zambia, are also some of the most unequal.
Inequality also results from regressive taxes [tax rate decreases when taxable income increases], unresponsive wage structures and inadequate investments in education, health and social protection for vulnerable and marginalized groups.
In the 1980s and 1990s, many African countries buckled under pressure from the International Monetary Fund, the World Bank and Western nations to implement structural adjustment programmes (SAPs), which led to cuts in subsidies for health, education, transportation and other sectors that help poor citizens.
Some historians and economists now say those cuts fostered inequality. “Under the influence of Western donors, austerity became African leaders’ default coping mechanism for periods of economic stress,” writes Nicholas William Stephenson Smith, a freelance researcher and historian.
Social unrest
For many countries SAPs widened the wealth gap rather than providing macroeconomic stability, argues Said Adejumobi, director of Southern Africa’s subregional office for the UN Economic Commission for Africa.
Adejumobi adds that structural adjustment stalled mobility, frayed communities and sharpened divisions along socioeconomic lines. Currently “a tiny group of 4% captures a large chunk of the income and wealth in Africa’s changing tide of capitalist progress,” he says.
Inequality now threatens social cohesion on the continent. In recent months thousands of Ethiopians have been on the streets protesting harsh economic conditions, forcing factories, hospitals and public transportation to shut down operations.
Economic inequality is fueling conflicts in the Central African Republic, Libya, Nigeria and South Sudan, says Adejumobi. “The warped motive of Boko Haram insurgency may not relate to inequality but…ignorance and deprivation are two factors that may have made it possible for the terrorist group to recruit young people to kill and maim their fellow citizens.”
Expect deprived people to push back against inequality at some point, says renowned French economist Thomas Piketty, because the rich will always try to protect the status quo and resist efforts to achieve an egalitarian society.
Piketty’s book “Capital in the Twenty-First Century” makes a moral argument against excessive wealth accumulation, describing it as unfair and unjust and something to be resisted.
Countries adopted the Millennium Development Goals (2000–2015) to, among other targets, halve the number of people living in absolute poverty. Globally, after 15 years, some 50% of participating countries had met that target, 30% had made progress and 20%, mostly developing countries, had not made significant progress.
The Gambia and Ghana met the target, but Ethiopia was among the countries that did not.
The authors of Income Inequality Trends in sub-Saharan Africa argued that poverty reduction efforts do not necessarily bridge the inequality gap, which was a conceptual underpinning of the MDGs.
To achieve the 2030 Agenda for Sustainable Development, an offshoot of the MDGs, experts hope countries will embrace a range of policies that tackle various forms of inequalities, not just poverty.
“Policies that help reduce poverty are not necessarily the same as those that help reduce income inequality,” writes Abdoulaye Dieye, director of UNDP’s regional bureau for Africa, in the preface to the report.
Closing the gap
Quality education may dent poverty but will not close the inequality gap unless accompanied by “progressive taxation [tax rate increases with increases in taxable amount] and well-targeted social protection,” Dieye further explains.
Also, countries need to focus on growth pattern rather than growth rate, because inequality falls when growth is in labour-intensive sectors, such as agriculture, manufacturing, and construction, and it rises when growth is in sectors high in capital and the use of skilled labour, such as mining, finance, insurance and real estate, according to the UNDP economists.
Currently most African countries allocate a significant share of their national budgets to recurrent overheads and/or debts, leaving little or nothing for other projects.
Corruption, mismanagement and illicit financial flows (IFFs) also deplete state coffers.
According to a 2015 report by a high-level African Union panel on IFFs headed by former South African president Thabo Mbeki, Africa loses up to $50 billion annually to illicit financial flows. Mr. Mbeki urges countries to punish multinational companies that are over-invoicing, underpricing or funneling money to tax havens.
“Gender inequality is costing sub-Saharan Africa “on average $US95 billion a year, peaking at US$105 billion in 2014—or six percent of the region’s GDP—jeopardizing the continent’s efforts for inclusive human development and economic growth,” according to the UNDP publication Africa Human Development Report 2016: Advancing Gender Equality and Women’s Empowerment in Africa.
The authors of the UNDP report highlight that in sub-Saharan Africa, household income disproportionately favours adult males and “gender discrimination is acute and endemic.”
The UNDP correlates gender equality with human development. Mauritius and Tunisia Mauritius have low levels of gender equality and high levels of human development. Conversely, Chad, Mali and Niger have high levels of gender inequality but low levels of human development.
Former vice president of the World Bank’s Africa division Obiageli Ezekwesili said last November that men are mostly to blame for Africa’s economic problems. “When many more women are at the decision-making level, there is less corruption. Nobody does any favour to women by involving them in governance.”
Ayodele Odusola, the lead author of the UNDP report, maintains that no single solution can address inequalities on the continent. “You have to take countries’ context into consideration,” he says, advising countries to adopt progressive taxation, invest in education and agriculture, increase direct taxation and institute efficient tax administration.
*Africa Renewal is published by the UN’s Department of Public Information.
The post Closing Africa’s Wealth Gap appeared first on Inter Press Service.
Excerpt:
Kingsley Ighobor, Africa Renewal*
The post Closing Africa’s Wealth Gap appeared first on Inter Press Service.