February 2007 : Newsletter of CUTS – Developmental Issues
Industrial Problems of Nepal and its Development Prospective
Nepal ranks a low 140 in the United Nations Development Programme (UNDP) Human Development Index. It is landlocked and mountainous which makes it dependant on the goodwill of India for its trade. The economy is based on small subsistence farming villages; soils are generally poor; fields are small; cultivation is labour intensive and the yields are low. The rugged terrain makes transportation, communications, power supplies and social infrastructure difficult. The governments have emphasised market-friendly economic reforms, encouraging domestic and foreign investment to boost industry, reduce export duties, and reform taxes. The small Nepalese stock market has been opened to foreign investors. Nepal joined the World Trade Organisation (WTO) in April 2004. But all these initiatives failed to meet the projected goals of the government due to political unrest in the country often changing governments and putting up psychological strain upon business, industry and foreign investment.
(Gorkhapatra, Nepal, February 02, 2007)
Mobile Phone Lifeline for the Poor
In Mongolia now, one in three has mobile phones. But there is growing evidence that mobile phones are more than a fashion accessory and can transform the lives of the people who are able to access them. From Ulaanbaatar to Darkhan, handset traders are pursuing their trade – some based in small kiosks, others in local markets, where fellow traders compete with lower prices. A growing number of reports suggest that mobile phones can change lives, which confirm that there is a link between mobile phones and growing economic prosperity.
(UB Post, Mongolia, February 23, 2007)
The Price of Being Fair
Farmers selling goods certified under the Fairtrade label can only sell as much at the Fairtrade price as they have contracts for. Cotton farmers in Mali were fully aware of the dangers of relying too much on one crop, even with a higher price, continued to rotate cotton with peanuts, maize, sesame seeds and so on. But, now that Fairtrade is gaining a larger share of the total market, the threat could become more serious. Unless every single coffee buyer in the world, for example, buys the same amount of coffee as before at a higher price, Fairtrade may well be in the uncomfortable position of closing its books to new applicants or certifying farmers who cannot get any contracts at a Fairtrade price.
(New Statesman, UK, February 26, 2007)
Is Green Future a Reality?
Environmentalists around the world are a worried lot. Not just because of the ongoing climate change but whether a coordinated effort from interested parties governments, industries and consumers is sufficient and strong enough to arrest the worsening environment. This time around, the Intergovernmental Panel on Climate Change (IPCC) has given its findings with higher level of confidence. It says that human activities are the prime drivers of the ongoing climate change, particularly the induced warming effect. The panel report also reiterates that it has developed a firmer base for impact assessment, adaptation options and vulnerability.
(The Financial Express, India, February 12, 2007)
African Trade Fears Carbon Footprint Backlash
A recent bold statement by UK supermarket Tesco ushering in “carbon friendly” measures – such as restricting the imports of air freighted goods by half and introducing “carbon counting” labelling – has had environmentalists dancing in the fresh produce aisles, but has left African horticulturists confused and concerned. Fresh flowers, fruit and vegetables make up 65 percent of all exports from Kenya to the European Union (EU), according to the Fresh Produce Exporters Association of Kenya (FPEAK). Half of this produce goes to the UK’s supermarkets, generating at least £100 million (US$196mn) per year for this developing country. The dependence on the UK market cannot be underestimated, says Stephen Mbithi Mwikya, chief executive of FPEAK. For Kenya, horticulture is the country’s second biggest foreign exchange earner after tourism. “This announcement from Tesco is devastating”, adds Mr Mbithi.
(BBC News, UK, February 21, 2007)
Industry Condemns Inflexible Plans to Increase Recycling
The average European produces 534kg of household waste annually. Some 22 percent is recycled or composted. There are huge disparities between different countries: Belgium recycles 53 percent of household waste while Hungary and Romania manage just over two percent. Local governments say business should play its part. Packaging waste in the UK increased 12 percent between 1999 and 2005, the Local Government Association, which represents municipalities, said. “The culture of the clingfilmed coconut has to end”, said Richard Stokoe.
(Financial Times, UK, February 14, 2007)
Climate Change will Spark Extreme Weather
Scientists now understand much more about how weather systems work, so are able to predict how temperature changes affect rainfall patterns and storms. You get a range of impacts that will affect peoples daily lives, said Richard Wood of the UKs Hadley Centre for Climate Prediction, a lead author of the Intergovernmental Panel on Climate Change report. Heatwaves will hurt more people, there will be more extreme precipitation causing flooding in some areas while other regions are suffering a lack of rainfall. The world has warmed by about 0.74°C in the last 100 years, and will warm a further 0.2°C per decade for the next two decades. Rajendra Pachauri, chairman of the IPCC, said the signals were unmistakable: We are seeing things that have not happened in 650,000 years. The IPCC said its best estimate was that temperatures would increase by 3°C by the end of the century, if carbon dioxide levels continue to rise as predicted. Such a rise would cause devastating effects in many countries.
(Financial Times, UK, February 02, 2007)
Vietnam Winning the Battle against Poverty
United Nations recently recognised Vietnam for being the first country to be ten years ahead of the Millennium Development Goals (MDGs) for poverty reduction. In 1990, 60 percent of our population was living below the poverty line. By 2005, the figure had been reduced to 19 percent. We attacked poverty in 1,200 communities. First, we built roads to mountainous areas, then electrification followed, and now we are building schools and polyclinics, explained Pham Tien Tu.In healthcare services, we set up a national network which now treats 88 percent of the poor free-of-charge, a process which is supported by the development of the education system. Primary education has been extended throughout the country, and in 32 of the 64 provinces, secondary school, that is, education up to ninth grade, has been generalised.
(Periodico, Cuba, February 02, 2007)
Globalisation: Bank Warns Africa over Loss of Jobs
The World Bank is warning of increased job losses in developing countries as globalisation gathers pace. It has also suggested that governments develop policies to support dislocated workers (those losing job due to employer moving to another location). A trade expert with the Bank, Mr Richard Newfarmer said the continuing integration of markets is exerting pressure on available jobs, intensifying competition. “As trade expands and technologies rapidly diffuse to developing countries, unskilled workers as well as some lower-skilled white collar workers will face increasing competition across borders”, he said.
(The Standard, Kenya, February 9, 2007)