Opinion: UK’s Environmental Audit Committee wants to introduce “Latte Levy” on the consumer, however, what if the government added policies and taxes that hit the companies instead?

Mary Creagh MP said:

A reusable cup is one of the easiest ways to reduce cup waste but the discounts offered by coffee companies are ineffective. The plastic bag charge is proof that charges are highly effective at reducing packaging waste. We urge the Government to introduce a 25p charge on disposable cups.” (Parliament.uk, 2018)

Since last year the Environmental Audit Committee (EAC) have worked on finding ways to make the Coffee industry in the United Kingdom more environmental and more sustainable. Since the one-time use of Coffee-Cups from the big international chains is a disaster to recycle and creates new levels of garbage. It is natural that this is looked into as much as other beverage and use of plastic to contain the liquid in ordinary trade. The EAC should look into the beer and soda industry as well, since they use one-time bottles of plastic that also hurts the environment.

What was striking was the recommendation from the EAC:

The Committee has called on the Government to: Introduce a 25p “latte levy” on disposable coffee cups, and use the money raised to improve the UK’s recycling ‘binfrastructure’ and reprocessing facilities. Set a target that all disposable coffee cups should be recycled by 2023. If this target is not achieved, the Government should ban disposable coffee cups. Make producers pay more for packaging which is difficult to recycle. Improve labelling to educate consumers about how best to dispose of their cup” (Parliament.uk, 2018).

That the “Latte Levy” is coming up is a good idea, but also already could be enforced directly, as the chains to make it more costly for each cup of one-time usable cups. Since, that would make more people aware and also bring cups for the chains. Even sell more cheaply the reusable cups and make offers that are reasonable for the consumer of coffee. Instead of adding more tax on the ones buying coffee on the run to and from works at the coffee shops.

If the government wants the consumer to use reusable cups, they should put in conditions not only to hurt their pockets with a latte levy, but also make it profitable for Coffee shops and Coffee chains to earn more bucks on their sales of this. They are only in the market for the profits, not for saving planet earth. Than the government has to put forward demands and laws that put restraint on the sellers to provide with cups, which actually are recycled or reusable with a fair price.

That the government would put extra pay to extend and make sure the cups are recycled is a good enough idea. To recoup and make sure they can facilitate garbage disposal that fits the one-cup use of the modern day at the coffee shops. That the industry should reshape and change is natural. But they will only do so, if they earn money on it or have to comply with new regulations. That is if the Conservative Government wants to direct and change the policies affecting the industry and their behavior. The consumer will look at price and convenience, so they will use the best options concerning their needs and daily life.

What the “Latte Levy” does is only to make the coffee a bit more expensive, but doesn’t do enough to change behavior or either consumer nor companies. That is what the target should be. The Companies should be affected for their use of one-time use cups and the trash it creates. Peace.

Reference:

Parliament.uk – ‘MPs call for “latte levy” on coffee cups’ (05.01.2018) link: http://www.parliament.uk/business/committees/committees-a-z/commons-select/environmental-audit-committee/news-parliament-2017/coffee-cups-report-publication-17-19/

The Uganda Budget Framework Paper for FY2018/19 signals growing debt and steady growth of interest repayments!

I will go over key points of the National Budget Framework Paper of Financial Year 2018/19 – FY 2022-23, that the Ministry of Finance, Planning and Economic Development released at the end of last year on December 2017. MoFPED or Minister of Finance Matia Kasaijja must surely flatter himself with this release. As the numbers and troubles ahead has to be meet with swift action. That the National Resistance Movement (NRM) and President Yoweri Kaguta Museveni should answer for the consequences their economic policies has affected the financial stability and fiscal responsibility.

On page seven of the paper, it was said this:

i) Low revenue to GDP ratio, poor planning and budgeting due to non-adherence to Sector Investment Plans and increasing trends in supplementary pressures; ii) Lack of inter and intra sectoral coordination and increased cost of public administration resulting from creation of Authorities, Universities, Districts and related Administrative Units. iii) Accumulation of domestic arrears, arising majorly from court awards and delayed payment to the private sector that supply Government; and, iv) Low budget absorption especially for infrastructure projects resulting from delayed acquisition of right of way for projects and lengthy procurement processes” (MoFPED, P: 7, 2017).

If this isn’t signs of trouble ahead and lack of control of the economy, nothing is. When the government has trouble paying their dues, when they cannot absorb needed budgeted funds and also create longer procurement processes, while there is poor planning and lack of cooperation between different parts of the government and institutions. Therefore, the basic cost of developing projects and day-to-day services will be more costly, while the misuse of funds will grow. That is not the good steady progress, the ruling government promised in recent elections or anytime else for that matter in the reign of Museveni.

As the scale of debt has been on the rise of different years. The paper is clearly signaling bad news as well: “Amortization of external debt is projected at US$ 236.5 million, equivalent to Shs 894 billion in FY2018/19, which is relatively high compared to past levels because of repayment of the PTA loan. Thereafter, external debt amortization is projected to reduce to US$ 131.8 million in FY 2019/20” (…) “Government‟s interest payments are projected at Shs 2,701 billion in FY2018/19, of which Shs 2,279 billion is interest on domestic securities (Treasury bills and bonds) and the rest is interest on external debt. Interest payments constitute 9.8 percent of total resources available for spending next financial year. The figure is projected to rise to Shs. 2,788 billion in FY 2020/21 and will amount to Shs. 3084 billion during FY2021/22. A great percentage of interest payments about 84 percent is domestic interest payments which partly reflects high cost of domestic borrowing” (…) “Total government expenditure and net lending (excluding debt refinancing) will amount to Shs 22,520 billion in FY2018/19 and further increase to Shs 25,059 billion in FY2019/20. The bulk of this expenditure (10.5percent) is largely on account of increase in development spending arising from the scale up of public investments by Government. However, moving forward the implementation of the infrastructure projects will be more gradual to ensure consistency with the requirements to meet the EAMU convergence criteria. Recurrent expenditure is projected to increase by Shs. 166 billion during FY 2018/19 mainly driven by an increase in domestic interest payments” (MoFPED, P: 13, 2017).

That this combined with the early signs of worrying of procurement process, bad collective effort of ministries and also growing debt. None of this is a well-made government to secure services and institutions to serve the public. Clearly, there are other outlines and worries, since none of the early pages of the paper are too hopeful. These numbers has been shown before, but the MoFPED are really not hiding the fact, that the growing debt and services of it is taking a bulk of the budget this year.

As in previous years, the State House and Office of the President are getting big chunks of the budget. In the coming financial year the State House total budgeted funds are in the massive amount of UGX. 265,342 billion shillings and the Office of the President gets the amount of UGX. 56,436 billion shillings.

Will look more into that, when I get the hold of the Budget Framework paper directly made for that part of government. Since it is always showing some inspiring expenditure, if it is expensive water or spending on bad seeds for Operation Wealth Creation (OWC). That depends on what excuse the President and NRM needs to overspend on the majesty for life.

More will come later. Peace.

Opinion: Now that the World Bank has new priorities, they will most likely not loan to the pipelines in East Africa!

 

There is certain movements that will strike as more expensive for the East African Community (EAC). This being for the Government of Uganda (GoU) and the Government of Kenya (GoK), who has big plans of petroleum pipelines from their oil-fields and to the coast. That being from Turkana to Lamu Port. While the Ugandan oil goes from Hoima to Tanga Port in Tanzania. Both development and industrial projects will have issues with the funding. The World Bank has supported massive infrastructure projects in both countries.

Therefore, for the two counties big development and oil industry, this is giant set-back, since they have to find funding and loans for the pipelines on the open market. Even with higher interests and making the profits of it lesser, than it would have been with a World Bank loan. It would not hurt the pocket as much as it does on the open market. The banks wants more profits themselves and also make sure they are paid-in-full.

With all this in mind. There are speculations, but first. Parts of the self-answering service. Before we look at the reactions in Kenya and Uganda. All of are important, as the state is involved in the licensing and building the pipelines. They are directly into the development and procurement of the pipelines. That is why this is big blow for the administrations and their possible tax-profits on it.

Word Bank Q&A:

Q. How is “upstream” oil and gas defined?

Upstream is an industry term that refers to exploration of oil and natural gas fields, as well as drilling and operating wells to produce oil and natural gas” (World Bank, 2017).

Current projects in our portfolio would continue as planned. However, no new investments in upstream oil and gas would be undertaken after 2019, unless under exceptional circumstances as noted in the decision” (World Bank, 2017).

Kenya Pipeline:

The announcement by the bank, which has significant interests in Kenya’s oil prospecting sector, does not bode well for the country’s anticipated entry into the club of oil producing nations beginning next year. Analysts said they do not expect an immediate reaction to the announcement even as they acknowledged that it takes the shine from oil in the long term” (…) “Locally, the World Bank is offering technical support to the Kenyan government, through the Kenya Petroleum Technical Assistance Project, to prime all stakeholders for commercial oil production and sale. The six-year programme is scheduled to run until February 2021 and involves the World Bank managing a Sh5.2 billion fund set up by investors from Germany, Norway and Britain. The World Bank’s private lending arm, International Finance Corporation, is however directly involved in Kenya’s oil fields, having a 6.83 per cent stake in Africa Oil, the Canadian exploration firm with interests in northern Kenya oil blocks” (Mutegi, 2017)

Uganda Pipeline:

The pipeline, is expected to be completed by the year 2020, when the country is scheduled to start oil production. In fact, Uganda’s President, Yoweri Museveni and his Tanzanian counterpart recently commissioned the construction of the East African Crude Oil Pipeline. The two leaders laid mark stones for the crude oil pipeline in Mutukula, Kyotera district and Kabaale in Hoima district. Total E&P Uganda, a subsidiary of French oil giant, Total S.A, is spearheading the construction of the crude oil pipeline on behalf of the joint venture partners. Adewale Fayemi, the general manager, Total E&P Uganda says discussions are ongoing to discuss on the formalities of how the pipeline will be run. Already, an agreement has been reached that the East African Crude Oil Pipeline (EACOP) will be run and managed by a Special Purpose Vehicle (SPV) – private pipeline company. This means that a private company will be incorporated with joint venture partners – Tullow Uganda, Cnooc Uganda Ltd and Total E&P Uganda, and the governments of Uganda and Tanzania as shareholders in the company” (Ssekika, 2017)

Certainly, this will put a strain on the projects. They have to deliver another type of arrangement to make sure they get funding and have the funds to pay the added interests the banks wants. The added points on the dollar and the interest-rates will hit state-owned firms and the state itself. Since the pipelines most likely becomes more expensive and will be less profitable.

That the World Bank is pulling out of these projects is all within line of the Paris Accord, as they have professed is the reason. Still, this will make these projects more expensive and make sure they are earning less on it. Unless, the crude-oil prices are going up to a level that makes these investments even more profitable. That is only for time to tell. Since it is costly projects and also sophisticated to build. There is needed lots of expertise combined state planning to achieve the development plans.

This is just the beginning, but the pipelines and these investments are vital for both Kenya and Uganda. As the governments are already borrowing state funds on the possible earnings from the oil reserves in their basins. Therefore, they need to drill and need the petrodollar as quickly as possible. Peace.

Reference:

Mutegi, Mugambi – ‘World Bank dims Turkana oil hopes’ (14.12.2017) link: http://www.nation.co.ke/business/World-Bank-dims-Turkana-oil-hopes/996-4227848-u02v8n/index.html

Ssekika, Edward – ‘East African Crude Oil Pipeline: The Inside Story’ (11.12.2017) link: http://www.oilinuganda.org/features/economy/east-african-crude-oil-pipeline-the-inside-story-details-emerge-of-how-the-crude-oil-pipeline-will-be-financed-managed.html

World Bank – ‘Q&A: The World Bank Group and Upstream Oil and Gas’ (12.12.2017) link: http://www.worldbank.org/en/topic/climatechange/brief/qa-the-world-bank-group-and-upstream-oil-and-gas

UN Special Rapporteur Alston questions the US Government on the extreme poverty in the United States!

The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.”Franklin D. Roosevelt

Yesterday, something rare happen, the United Nations addressed big issues within the United States and their ways of governing. Clearly, this is starch message. If this was a poorer and weaker state. The United States Special Rapporteur Phillip Alston would have condemn their actions. Instead, he is describing it and addressing it. Which is a fresh look from the United Nations, that is worried about the growing poverty in the US. It is special that it happens in this period and time. When the ruling party and majority in both chambers of the Congress. Is working on a bill to give tax relief to the wealthiest, the corporations and growing deficit on the federal budget. Clearly, the value of the middle-class and the poorest doesn’t matter in this calculation. Since, the taxes will grow for the ordinary and the poor, while the richest get more cash.

Therefore, what the UN Special Rapporteur is writing is damning. It is demeaning. This isn’t a fairy-tale or a Disney adventure. This isn’t the dream of gaining fortunes at Silicon Valley. This is the real deal, the issues, the ghetto’s, the slums and the ones living on food-stamps all around the US. The way the United States is governed, might be also a reason for the rampant poverty. Since the Federal State is so far away and the limitations on the States. Barres the State governments from actually delivering necessary welfare and provisions to help their poorest citizens. It could be in their DNA, as everyone is supposed to be self-made and can become millionaires. Even if it is just a tiny group of people who is able to go from the slums and ghetto’s and become vastly wealthy. They are more rare, than the norm. The Rapporteur really paints a story of an American Nightmare and not the American Dream. Alston is describing a bleak picture and shows, that the United States got a lot of work to do. If their citizens are supposed to have equal rights and equal opportunities, because the contrasts and the different spectrum’s of wealth should worry the politicians. Clearly, it doesn’t when we know how the Tax-Plan is and who will benefit in the coming years.

The reality that I have seen, however, is very different. It is a fact that many of the wealthiest citizens do not pay taxes at the rates that others do, hoard much of their wealth off-shore, and often make their profits purely from speculation rather than contributing to the overall wealth of the American community. Who then are the poor? Racist stereotypes are usually not far beneath the surface. The poor are overwhelmingly assumed to be people of color, whether African Americans or Hispanic ‘immigrants’. The reality is that there are 8 million more poor Whites than there are Blacks. Similarly, large numbers of welfare recipients are assumed to be living high on the hog. Some politicians and political appointees with whom I spoke were completely sold on the narrative of such scammers sitting on comfortable sofas, watching color TVs, while surfing on their smart phones, all paid for by welfare. I wonder how many of these politicians have ever visited poor areas, let alone spoken to those who dwell there. There are anecdotes aplenty, but evidence is nowhere to be seen. In every society, there are those who abuse the system, as much in the upper income levels, as in the lower. But the poor people I met from among the 40 million living in poverty were overwhelmingly either persons who had been born into poverty, or those who had been thrust there by circumstances largely beyond their control such as physical or mental disabilities, divorce, family breakdown, illness, old age, unlivable wages, or discrimination in the job market” (…) “There is no magic recipe for eliminating extreme poverty, and each level of government must make its own good faith decisions. But at the end of the day, particularly in a rich country like the USA, the persistence of extreme poverty is a political choice made by those in power. With political will, it could readily be eliminated” (…) “Reflecting on these developments, leading poverty experts have concluded that: Because of this rising joblessness, the U.S. poverty population is becoming a more deprived and destitute class, one that’s disconnected from the economy and unable to meet basic needs. … 40 percent of the 1999 poverty population was in deep poverty … [compared to 46 percent of the 2015 poverty population … . Likewise, rates of extreme poverty (i.e., living on less than $2 per day per person) are also increasing, again because of declining employment as well as growing “disconnection” from the safety net” (Alston, 2017).

This words are striking, these words are address big problems within the American society. That cannot be taken easy. There isn’t proper institutions, programs or even state provisions to help out the ones need. The growing poverty and extreme poverty is weird when you consider the vast amount of wealth residing the same nation. It is like it was rigged to be this way and they are playing demographics and also politics must really be damaging. Since, there aren’t any clear indication that these issues are addressed or significantly cared about by the federal state or the states themselves. The ignorance of the needs of their own, should shatter anyone caring about fellow human beings. That they accept the dire poverty, while the riches families can own estates bigger than some European Kingdoms.

If that isn’t a signal of something in need of change, while so many are struggling to survive and to pay the next rent. That there are a lack of understanding of the generation after generation of struggling individuals in the ghetto’s and slums. These are not looked after or tried to fix, but with small patches and civil society based organization who try to do charity. However, they cannot make them prosper or change the evil circle of lack of jobs and no safety net from the state.

This is political choice and by political will, by the ones that actually are in power. They have to show their concern. Give their legislation and make sure that these people are addressed and have a future. Since they can leave the groundwork and framework so they can live life beyond the hand-to-mouth. But actually own a home and live decent. Instead of struggling with every single penny. Worrying about if either you or any other person in the family ending up in the hospital. If so, they have to collect more debt and struggle more because of lack of coverage and funds to be able to pay for health-insurance. That could be typical issue for Americans on the poverty line. The forgotten by all powers and shown these days by the tax-plan as well, who will make Medicaid and other programs get grave cut. While the corporations are getting tax-holidays.

There is something really wrong these days in America. The riches are really poor. They cannot afford to pay tax or even contribute to the society they are earning their fortunes in. They are so poor, they cannot stomach paying points on the dollars, so the poorest and their workers can get some social benefits. So they can be more healthy and work better for them. Instead, their greed and their draconian ways, will make the extreme poverty even worse and grow numbers of people in dire needs. With time, the corporations will also have fewer costumers. Since they cannot afford to buy their products. So it won’t gain growth, when making more people poor, while a minority will get even wealthier. Peace.

Reference:

Alston, Phillip – ‘Statement on Visit to the USA, by Professor Philip Alston, United Nations Special Rapporteur on extreme poverty and human rights*’ (15.12.2017)

American Company (Harris Media) peddling dangerous propaganda in the recent elections in Kenya!

Privacy International Reported through their investigations that a Texas based Harris Media LLC, who made web-pages the “The Real Raila” and “Uhuru for Us”, which both targeted not only the National Super Alliance Presidential Candidate Raila Odinga, but also addressed deep issues with tribal affairs. Which a foreign entity should use as a tactic or even think about using in a political atmosphere. Where there has been violence because of tribal tensions as late as 2008. Clearly, there we’re international companies involved the 2017 elections, not only Harris Media, but also Cambridge Analytica, who both worked for the Jubilee Party and for Independent Electoral and Boundaries Commission (IEBC). Therefore, all of the companies that has been hired in, has mostly worked to benefit the cause of the incumbent President Uhuru Kenyatta and his party. The same did also OT Morpho, a french company delivering the KIEMS system to the IEBC.

So today revelation isn’t a new thing, but what is new is that they are directly using spiteful means to boost Kenyatta. This is devious and devilish to use the tactics that the pages of Harris Media did. Harris Media has represented Ted Cruz, Benjamin Nethanyahu and Rand Paul. They themselves call their methods: “We pride ourselves on creativity, innovation, and client service. We have a creative in-house team of graphic designers, web developers, and video editors. Our team has overseen multi-million dollar digital advertising budgets and will work with you to deliver the most targeted, innovative, and creative online strategy that fits with your goals. We believe every client deserves a unique digital strategy that is tailored with their specific needs in mind” (Harris Media, link: https://www.harrismediallc.com/our-work/).

Just to show what the Uhuru for Us is, let me take a few pieces:

On Facebook page 21st October it said this: “Kenya is a democratic nation where our citizens exercise their god given right to vote on who should lead our country. Raila Odinga is the greatest threat to our democracy!” (Uhuru for Us, 21.10.2017). On the 20th October 2017: “Exercise your right to vote and make your voices heard! They are trying to steal our democracy. They are even talking about splitting up Kenya and stealing our country. Ensure this doesn’t happen! Get all your friends fired up and ready to vote for Uhuru! He is the only leader who can keep Kenya growing, keep Kenya united, and keep Kenya peaceful!” (Uhuru for Us, 20.10.2017). On the 17th October 2017: “Do you believe in Uhuru’s peace as opposed to Raila’s violence? Do you believe in Uhuru’s progress as opposed to Raila’s backwardness? Do you believe in Uhuru’s unity as opposed to Raila’s divisiveness? If you are voting for peace, progress and unity with Uhuru pledge your vote today!” (Uhuru for Us, 17.10.2017).

This are some of what they did during the elections to sway people. Calling Raila evil and despicable things in favor of Kenyatta. The ironies into that is that Kenyatta has used the police and military, who actually killed numerous of people right before and during the campaigns. Even right before polls, there been big extra-judicial killings. Therefore, this campaigns are trying to target the opposition in a manner that they can question the ruling party.

That the Harris Media as a provider and a targeting campaigns are going this far in their propaganda shows the levels of little integrity. The American Media and Political Lobbying Firm are clearly using their methods to tarnish the opposition. They do it by all means and with no favors. There is no justification. Just spreading fear and more fear for the purpose of re-electing Kenyatta.

The elections this year has already been put in question and viably so. There is enough issues within the IEBC to start counting the doubts of a real counting of the votes on the 8th August and 26th October 2017. Harris Media and Cambridge Analytica worked really well to fix the message that Kenyatta wanted and to make Odinga look even worse.

Privacy International stated this about their work: “Three Harris Media staff, including Josh Canter, its vice president for content production, an account director, and a designer worked on The Real Raila site, authoring blog content, mostly republishing lightly-sourced characterisations of Odinga as a dangerous, racist xenophobe with promoting his tribe and family as his primary political aim. The Uhuru For Us Twitter account still appears linked to a Harris Media email address. Created in March 2017, its first follower was Kenyatta’s Digital Media Strategist” (Privacy International, 13.12.2017).

The American Business and Media Corporation was certainly peddling propaganda in favor of Kenyatta, that is shown just by one page on Facebook. Kenyatta paid these foreigners to serve his purpose, even if it created a more hostile environment. This also proves that American interests has been involved in keeping Kenyatta as a President. That is foreign interference from the United States in the Kenyan election. Certainly like they are looking into the involvement of Russians in their own, this would be the same sort of methods done in Kenya by them.

That Harris Media has been peddling this sort of content and put adverts in favor, that diminished the reputation of Odinga and his NASA. Shows that they we’re already invested in the Kenyan government and the current leadership, that is why they also got to hire certain companies to send their message. Kenyatta knew this all along, the same must been known by the American Ambassador Bob Godec. That has known about the communications done by Harris in favor of Kenyatta. Clearly, the Godec paradigm is to let Jubilee and Kenyatta continue to rule.

We can certainly question all of the American involvement as the Harris Media did their part in creating the separated nation as it was shown on the Jamhuri Day of 2017. This is as a results of the two previous presidential elections this year and non has ended well. The involvement of all of these companies should be litigated and be subpoenas to get intelligence on their direct involvement in the elections. Not that Kenyatta want to do that, because that weakens him even more. He is already fragile and not having the proper support anyway. He needed to cheat to win and that is proven. Peace.

A Working Paper reveals the political stakes in the Kenya-Somali Illegal Sugar Trade!

The Danish Institute for International Studies (DIIS) have had a study into the border trade and sugar exports through Somalia into Kenya. How it is used and how it gets to the market. Clearly, the market for sugar is there in Kenya. As the Sugar Industry is struggling to deliver enough sugar and the state has embargoed imports. Still, the same actors and the same politicians are doing behind closed doors agreements that put the sugar in stores through the porous borders of the Kenyan-Somalian border.

The paper itself paint the picture very well and show the importance of the export, since the magnitude on both economies are affected by it. It is also implicating big names and their organizations. As the politicians has another black-market cartel item to sell to the public. What was striking was that the importers together with local merchants are repacking the sugar into bags of the State Owned Entity (SOE) of Mumias. The Company that has been saved the state after devastating corruption and also lacking investment into the mills. Therefore, the politicians has used this name to trade illegal sugar with name. That they even used the stickers to prove it was of Kenyan quality while selling it to the public.

The quotes I have taken, is what see as important. But its compelling to show the this illegal imports into Kenya affects the politicians and the economy in general. Take a look!

The Amount of Money:

Raw sugar accounts for 10% of total Somali imports rated at US $188 billion (Observatory of Economic Complexity 2016). In other words, sugar importing is enormously lucrative and important for the local economy on both sides of the border. The sugar imported from Somalia is central for covering the production and import deficit in Kenya. Most sugar enters through Kismayu port where it is manually loaded onto trucks and driven to the Kenyan border. There it is re-loaded onto other trucks, four-wheel drive vehicles and even donkey carts to cross the border on the so-called ‘rat routes’ that circumvent the border posts to avoid the payment of bribes, random checks by the Kenyan Revenue Authority (KRA), and the occasional confiscation. Based on interviews and observation JFJ estimates that 150,000 tons of illegal sugar entered Kenya from Kismayu in 2014 (JFJ 2015). This amounts to US $400 million worth of annual revenue divided between KDF, Al-Shabaab, local businessmen and politicians, as well as local police and border patrols, including the KRA (though this is not formal revenue) (JFJ 2015)” (DIIS Working Paper, P: 10, 2017).

KRA:

The investigator explained how his unit, in collaboration with the Kenyan Revenue Authorities (KRA) and the Kenya Bureau of Standards (KEBS), had planned the raid of a warehouse in an industrial area of Nairobi. They had found tons of processed Brazilian sugar allegedly smuggled into Kenya via Somalia, and it was now being repackaged from 50 kilo sacks into 500 gram and 1 kilo bags bearing the Kenyan brand Mumias Sugar and with added stickers from KEBS showing that the product meets Kenyan standards of production and quality. The repackaged sugar is – when not confiscated by the authorities – sold to retailers as refined Kenyan sugar at a huge profit. In 2014 a one kilo sugar bag sold for KES 133 in Nairobi supermarkets, and by May 2017 prices had gone up to KES 170 with some supermarkets rationing it to one package per customer” (DIIS Working Paper, P: 12, 2017).

Political Influence:

Like the former Nairobi governor Evans Kidero, the Garissa governor Nathif Jama Adam, and the Garissa-born majority speaker of parliament Aden Duale are rumoured to be implicated in the sugar trade (Rawlence 2016: 236). These rumours reach all the way to Nairobi where they can be voiced more freely than in the north. The power of the people implicated by the rumours is more distant in Nairobi, whereas in the northern parts of Kenya the secrecy associated with the rumours points to the importance and power of those involved” (…) “With devolution, local government has become more powerful and more is at stake for locally elected officials due to their increased budget responsibilities and decision-making powers. Concomitantly, local government has become more vulnerable to pressures from local stakeholders like strong businessmen, militias and other state actors. The porous border, the circumvention of border patrols, and the implication of government officials ranging from KDF to KRA means that much of the sugar is not declared to Kenyan customs officials, making Garissa county one of the largest illicit markets in the country. The flow of goods across the border and further into Kenya formally falls under the responsibility of KRA and the national government. Yet the county government is responsible for local revenue collection and enforcement at local markets and car parks, and they also issue licenses for traders. In that sense the warehouses in the region fall under county administration. The latter thus plays an important role in the possibilities for the redistribution of smuggled goods” (DIIS Working Paper, P: 15, 18, 2017).

This here is evidence of cartels, illegal trade that is benefiting the political elites in Kenya and in Somalia. They are both having knowledge of it and its undermining the embargoes and also the activity itself. Since the politicians are the ones that has put in the provisions and the laws to stop imports to secure the local sugar industry.

This paper shows how much money that is involved. It is big business and the cartels are earning fortunes on lie, where they take foreign cheap sugar and trade it as Kenyan sugar with stickers of authenticity of KEBS. That is clearly a violation in itself, but combined with the illegal sugar, they are even using sophisticated methods to trade it to the public. To make the sugar seem like Kenya, when it isn’t.

That this money is shared by many different part of government officials was implicated int the trade from Kenya Defense Force Officials, Kenya Revenue Authority Officials, Border Patrol, Politicians and even Somali terrorist organization Al-Shabab. So the Kenyan are sending military to Somali to fight Al-Shabab, but at the same time giving them revenue with illegal sugar trade. That is a striking a fact considering the use of military to secure safety for Kenyans. Therefore, the cartels are also making sure the reason they are fighting inside Somalia are funded by the stakes into the illegal sugar industry. That should put some alarm bells on. That the politicians are playing with matches and should know that this cartel plus funding of Al-Shabab might hurt them in the long-run. Instead of being just a profitable business.

This is eye-opening and also a tale of corruption and sugar-cartels using the porous borders between the republics in favor of those dealing illegal sugar and selling it on the Kenyan market. Certainly, this sort of thing will implicate bigger names, than the ones mentioned in the paper. If investigated and looked through. You could certainly also find many bigger names who has created massive wealth within short amount of time. Peace.

Reference:

Rasmussen, Jacob – ‘SWEET SECRETS: SUGAR SMUGGLING AND STATE FORMATION IN THE KENYA–SOMALIA BORDERLANDS’ (December 2017) – DIIS Working Paper 2017:11

Brexit: David Davis, the Secretary for Brexit is just making it harder for himself and his country!

David Davis, the Secretary of State for Exiting the European Union and running the Department for Exiting the European Union (DEXEU) who is working for a sustainable and as good as possible agreement between United Kingdom (UK) and European Union (EU). Even as all the months has passed and the EU and UK came with a Joint Report last week, ending the Phase 1 of Negotiations. Still, that doesn’t seem enough for the Secretary Davis. Who has concurred differently apparently, as the EU and UK should be focused on ironing out more difference and making sure their status is good after the departure of Membership by the UK. Seemingly, Davis is more busy creating more havoc.

On a BBC Interview at the Andrew Marr show on the 10th December 2017, he answered this:

it’s been made clear by Number 10 already, so that’s not actually new. The second element about this is the other areas. Now look, one of the things we have had as a major objective, a major negotiating objective for the British government and we don’t normally lay our red lines out in public, that’s one of

the things I’ve always said, is we want to protect the peace process and we also want to protect Ireland from the impact of Brexit for them. So we – you know – this was a statement of intent more than anything else. It was much more a statement of intent than it was a legally enforceable thing” (BBC, Andrew Marr Show, 2017).

So he significantly downplayed the joint report that was fixed between UK and EU that was signed on the 8th December 2017. Therefore, it just took two days after signing and agreeing between the partners, before the one leaving downplayed the whole agreement between them.

The start of that agreement specify this:

This report is put forward with a view to the meeting of the European Council (Article 50) of 14-15 December 2017. Under the caveat that nothing is agreed until everything is agreed, the joint commitments set out in this joint report shall be reflected in the Withdrawal Agreement in full detail. This does not prejudge any adaptations that might be appropriate in case transitional arrangements were to be agreed in the second phase of the negotiations, and is without prejudice to discussions on the framework of the future relationship” (EU/UK, 2017).

Seemingly, the Secretary is not so good with details, since the Joint Report will be reflected in the Withdrawal Agreement, meaning that the words and the specifics be a bit altered, but the reality is that the ideals of the Joint Report will be mirrored in the end. Therefore, the words of David Davis is reckless. Considering the commitments the United Kingdom has done by signing and agreeing on the Joint Report. Its like he brushing over the importance of ending Phase I to join the negotiations at Phase II.

That is why European Union are striking back at this towards Davis, who clearly doesn’t what his actions does to the Union they are leaving. This are joint resolutions that are attacking and addressing the misconceptions of Davis. First amendment made by the Joint MEPs which says:

Is of the opinion that the report allows for the negotiations to move on to the second phase and recommends that the European Council acts accordingly, but believes that negotiations must be connected in good faith and is or the opinion that negotiations can only progress during the second phase if the UK government also fully respect the commitments it made in the Joint Report and they are fully translated into the draft Withdrawal Agreement” (Joint Motion for Article 2 on the state of play of negotiations with the United Kingdom, 2017).

So the MEPs of European Union in various parties are reacting with force and wanting the EU to sanction the words writing the Joint Report and take it seriously. But they have more important issue to amend:

Whereas comments made like those by David Davis calling the outcome of phase I of the negotiations a mere “statement of intent”, risk to undermine the good faith that has been built during the negotiations” (Joint Motion for Resolution on the state of play of negotiations with the United Kingdom, 2017).

Clearly, the EU is not having it with this sort of foul play. They are not accepting any cheap trick concerning the withdrawal of UK. The EU MEPs and leaders who has written these motions to secure the developments are moving forward and with respect to the things already agreed upon. We can see that David Davis wasn’t acting wise, when he is trying to forge an agreement that fits both parties. Clearly, Davis are only thinking of his own career and not of how it makes him look elsewhere.

That Theresa May has something to answer for in Brussels later this week is clearly. When Phase II is coming and the secretary in charge from their negotiation team has made a mockery of the Phase I. He did it on BBC and on a live TV-show. Typical recklessness of the Brexiteers and their campaigns too. Just like they did with facts concerning the Brexit before the polls as well. Same thing, just more dire now, since the opposite party, the one they are leaving will not be so helpful if you disgrace them days ahead of negotiations.

However, Davis like to put some more gasoline on the fire and see how much it burns. At least that is how it looks like and with his previous actions as well. Instead of acting with some tact and some consideration. He is blatantly undermining the efforts done by both EU and UK. This could have been a good start for Phase II and the needed details before an agreement. Therefore, the reflection of the Joint Report shall and should naturally be a part of the Withdrawal Agreement. It is not just a mere statement, it is the pre-binding text for the coming agreement. Putting context and perspective on how the actual agreement will be. Peace.

Reference:

EU/UK – ‘Joint report from the negotiators of the European Union and the United Kingdom Government on progress during phase 1 of negotiations under Article 50 TEU on the United Kingdom’s orderly withdrawal from the European Union’ (08.12.2017)

Opinion: What will we leave behind to the next generation?

I wonder if our leaders of our time is considering their legacy and the aftermath of their decisions. Its like the constant breaking news, the steady flow of information and the reactions are more damage control, than actually policies for a sustainable future. Where the actions of today either creates more hostile environment or more fragile institutions for the next generation to gaze upon. Its like we should wonder, what we have to do. To be sure the kids of today, will have states and institutions that are considered good.

We can wonder if the states are built more for corporations and multi-national financial institutions and their needs over what the citizens need. We can wonder if the linear move of financial services is built for the multi-national corporation and their sophisticated tax evasions, which is legal, but still questionable by all parts of society. Because of citizens does so, they will be punished by late-taxes, while a corporation can create a shell-company and move the money like a saint.

We can really wonder what will be left behind, as the states are fragile, the military powers are extended and more countries are affected of violence and senseless killings. By both militants and by state sponsored armies. All of this are creating havoc and making the states weaker, while the injustice roam. Citizens are fleeing injustice and insecurity, trying to find shelter and a new home. While the riches nations are putting up higher walls, making it more dangerous to pass and making agreements on the borders. To stop them and even send them home into violence and possible death by association. This is all happening, day to day.

In many countries it is dangerous to be opposition. If you oppose the ruling regime, you will be arbitrary arrested, your family will be monitored and you might be assassinated. Your business will be taken over or destroyed. The elections are rigged and the appointments made by the elected officials are obnoxious. They are made for facilitating the parties and their cronies. Not to build institutions or departments to deliver services to the citizens, but instead its used for cronies of the leadership of the day.

So it seems like tomorrow is forgotten, because the latest burning fire is more important that thinking about the future. If we could avoid it or even try to find solutions to avoid fires. Stop the dry forests, find out why the temperatures are arising and all the other issues for the running fires. It has to be stopped. The reasons for the businesses has the ability to take out profits where they initially earn it and put it into accounts in Tax Havens. That takes away needed funds and state reserves to secure delivery of needed functions of the state. Which all costs from planning to delivering, from salaries to procurement. Everything has to be covered by the taxes and the revenue made within the state, therefore, when the corporations are allowed to move profits without taxes. They are initially using the state and citizens, while also shelving the needed costs of actually doing business in the state. Even if it is profitable today, it might be more costly tomorrow. As the bankrupt states, the initial degree of defaulting on loans and the interests pay by the state. Take away even more services and possible development of the needed ministries and departments by the state. It is an evil circle, which in the end, make it impossible for the businesses to do business, since the public cannot afford and the state cannot afford either. Since they are all paying down loans, instead of growing the economy with need for the products these businesses make.

If the leadership of today had cared and had thought it through. They would have had more mechanisms, would have had more secured definitions and actually built institutions with protocols to fix possibly tomorrows problems. Instead, we are trying to configure and find solutions again and again. We are trying again to fix similar problems, with lacking funds and times. We are having meager responses and lack luster performances. Where we are building up personality cults and armed generals as leaders, while forgetting why we have governments. The governments that are there as representatives and providers for our day to day lives.

Still, that vision is far fetched and also seems like pipe-dream. Where the states are more and more complying to multi-national corporations and their interests over the needs of the citizens. If not they are complying to the leadership or one single leader who control the state itself. The democratic values are dying, the benefit of representation is dwindling and the face-value of the government. The government is losing value, while the ones leading them is enriching themselves instead of serving the citizens. They are doing this, this way since they are obliging the corporations and cronies instead of serving them.

Is this the legacy we want to leave to the next generation? Is this the state of affairs, we want to be remembered for? That we let them take us and use us for our time and when we lived. That we didn’t build a better tomorrow for us the citizens, but to make sure the leaders and the corporations earned on our hard work and dedication. Its clearly somebody is compensated, while the rest is bleeding.

While we’re wounded and taken for granted. Should we react, should we question and should find ways to demonstrate our discontent with the current affair. As our state mind cannot accept being taken for granted and being used in the favors of people we don’t know and doesn’t represent us anyway.

We should about this and wonder, how can we recover and make they do? What can we do as citizens to get this back? Get them to represent us instead of them. Be for us and work for us and not work for them. Neither work for the corporations or the cronies, but work for us. That is not to much to ask for, but it wouldn’t be easy.

We have to work together and dismantle this. Because the governments cannot be traded-off and we be used only to vote before every term and then left astray. We cannot accept that the illegitimacy of the current state. With leaders disrespecting both their citizens and the state institutions to stay in power. That is how it is, but not how it should be.

I don’t have any solutions, but we have to start discussions and consider our ways. Think and find ways out of this mess. So we can leave a better world for the next generation. Not leave a world with leaders and states, where the citizens are disenfranchised and lost with few options. Where the corporations together with multi-national organizations are taken control, instead of the governments. That is not how its supposed to be with the civil service and the ministries/departments of our states.

We need change, we need something else. We shall not and should not accept to deliver this mess to the next generation. They never asked for this and should not have to work against it. We should deliver are better world to them and not leave a battlefield and a turmoil, while hoping we have given them the work ethic and the skills overcome it. Peace.

Brexit: Key quotes from the Joint Report made by EU and UK yesterday!

Yesterday, the Brexit negotiations made some progress finally. The negotiations between European Union and United Kingdom, as United Kingdom are leaving the Union during the year of 2019. As that is happening, there are needed for agreements and deals to secure movement and trade between the continent and the island kingdom. That will not happen automatically, but has to happen with agreements between them. Therefore, after lots of months with no key movement. Yesterday it was finally something real that was delivered between them. Not that it has solved much, but it shows progress and need for continued presence of consultations to find solutions for the parties.

Union citizens who in accordance with Union law legally reside in the UK, and UK nationals who in accordance with Union law legally reside in an EU27 Member State by the specified date, as well as their family members as defined by Directive 2004/38/EC who are legally resident in the host State by the specified date, fall within the scope of the Withdrawal Agreement (for personal scope related to frontier workers, see paragraph 15, and for social security, see paragraph 28)” (EU/UK, P: 3, 2017).

This should at least give rest to all citizens if they are British or European, that their rights within United Kingdom is not revoked and he same with UK in the EU. This gives a leeway to the citizens of both EU and UK. They are safe and sound. There will not be a problem between them after UK leaves.

In the absence of agreed solutions, as set out in the previous paragraph, the United Kingdom will ensure that no new regulatory barriers develop between Northern Ireland and the rest of the United Kingdom, unless, consistent with the 1998 Agreement, the Northern Ireland Executive and Assembly agree that distinct arrangements are appropriate for Northern Ireland. In all circumstances, the United Kingdom will continue to ensure the same unfettered access for Northern Ireland’s businesses to the whole of the United Kingdom internal market” (…) “Both Parties will establish mechanisms to ensure the implementation and oversight of any specific arrangement to safeguard the integrity of the EU Internal Market and the Customs Union” (EU/UK, P: 8, 2017).

The Irish question that was stopped by a phone-call earlier this month shows how hard it was settle this text. Since the European Union, Irish Republic and the United Kingdom had to be collectively together on the agreement, that fits the paradigm of all parties. If it was the UK, Irish and the EU. That the Northern Irish Democratic Unionist Party (DUP) have secured their place, but at the same time. The Irish have made sure to make no troubles on the borders for now. This has been hectic for the Tories and United Kingdom. While the EU have followed the wishes of the Irish, since they are a Member State.

On ensuring continuity in the availability of goods placed on the market under Union law before withdrawal both Parties recognise the need to provide legal certainty and minimise disruption to business and consumers. Both Parties have agreed the principles that the goods placed on the market under Union law before withdrawal may freely circulate on the markets of the UK and the Union with no need for product modifications or re-labelling; be put into service where provided in Union law, and that the goods concerned should be subject to continued oversight” (EU/UK, P: 14, 2017)

Therefore, the United Kingdom, will even as they are leaving making sure they are following EU Law on Consumer and Trade, as they want to be sure that all markets and products still are on the shelves as they leave. This means, that the UK still will follow procedure and regulations from Brussels concerning corporations and labeling, all sort of economic activity. Since they will have to do this, to be sure to have imports and exports of all kind. If it is financial services or products themselves will be made sure to be there, even after the UK left the Union.

The ones that believed it would be striking difference between the UK outside of the EU and the ones inside. Are mistaken, especially when considering the first joint report delivered the public yesterday. Its more of the same, but some minor changes. When it comes to trading right now, they still have to comply to Brussels.

I didn’t look into so much the Financial Dispute, since that is already been discussed in the media and been into, as it is natural while ending a genuine partnership and membership, that you pay the obligations and the agreed upon years within institutions that has been built while being apart of the Union itself. Therefore, the texts there wasn’t that interesting. It was more significant, that the Market Place has to comply with Brussels. That Irish got their wish on the border, even if it not 100% Official, as it is still not binding agreement. It still shows how much the UK has given and how little they have gained with the meetings with the EU. Peace.

Reference:

EU/UK – ‘Joint report from the negotiators of the European Union and the United Kingdom Government on progress during phase 1 of negotiations under Article 50 TEU on the United Kingdom’s orderly withdrawal from the European Union’ (08.12.2017)