Brexit: Lords Report shows dire consequences of a “No Deal”!

If you ever will believe the narrative of the Conservative Party and the leadership around Theresa May, Boris Johnson and David Davis. Then you might believe there will be no consequences if the United Kingdom leave the European Union without any agreement. That means all the previous ones will cease and the third state of United Kingdom. Will loose all direct connections and also hurt all sort of movements between UK and European Member States and the Schengen Countries. This will hurt businesses, exports and also direct movement between UK and the EU. I will take the quotes that are showing the most concern from the House of Lords. The words from there is not my own, but from the Lords themselves and what they have collected. Take a look!

The Loan Market Association pointed out that the loss of the Capital Requirements Directive passport would have a major impact on lending and loan market activities conducted by banks. A sudden withdrawal of passporting rights could affect both the enforceability of existing loan agreements and the ability and willingness by UK-based lenders to enter into future agreements” (…) “Lloyd’s predicted that the transfer of personal data from the EU to the UK would also be more difficult for UK firms doing business in the EEA. London based firms would therefore have to establish EEA subsidiaries or cease to write EEA insurance” (House of Lords, P: 11, 2017).

The Fresh Produce Consortium noted that the Port of Dover handled 600 lorries per day transporting fresh produce. In 2016, the UK imported 3 million tonnes of fresh produce from other EU Member States. Many suppliers dealing solely in EU imports have no experience of meeting customs requirements, and registration as an Authorised Economic Operator would not be feasible for most small importers” (…) “The British Retail Consortium warned that the average tariff on food products imported from the EU would be 22%, with tariffs on Irish cheddar of 44% and on beef of 40%. Its research pointed to potential rises in the price of cheese in the order of 6–32%, on tomatoes of 9–18%, and on beef of 5–29%. Nontariff barriers would be burdensome in relation to customs checks, and health or veterinary checks stemming from sanitary and phytosanitary requirements” (House of Lords, P: 12, 2017).

The Institute for Government noted that, in order to prepare the border for ‘no deal’, change would be needed across 30 Government departments and public bodies, as well as more than 100 local authority organisations. Private sector port operators, freight forwarders and shipping lines would need to adapt

their infrastructure, paperwork and logistics. France, The Netherlands and Ireland would also need to plan for disruption at their ports. Operation Stack demonstrated how delays at Calais have a knock-on effect in Dover” (…) “The BRC pointed out that up to 180,000 UK companies would be drawn into customs declarations for the first time. Companies would have to operate new excise and VAT systems for compliance purposes” (House of Lords, P: 14, 2017).

The London Chamber of Commerce and Industry noted that there was no WTO ‘fail safe’ for the aviation sector: “The ultimate danger is that without a deal, flights from the UK and to the EU and other parts of the world will be grounded on exit day … And without an early deal—meaning clarity for airports, airlines and travellers as soon as possible in 2018—the uncertainty around what might happen will begin to weigh on the decision making of those considering travel.” (House of Lords, P: 15, 2017).

The Russell Group concluded that no deal would affect universities’ ability to deliver world-leading research and education. No deal on the rights of EU citizens to live, study and work in the UK could lead to a loss of talented researchers and technicians with specialist skills who could not be replaced easily by UK nationals. If the UK and EU did not secure an agreement on science and research collaboration, UK institutions would cease to be eligible for Horizon 2020 funding on the day of exit. This would mean funding for existing projects would be withdrawn and researchers would immediately lose the ability to bid for this funding, with a detrimental impact on international competitiveness” (House of Lords, P: 16, 2017).

The Institute for Government observed that “if the UK leaves the EU with no deal, it will not be possible to put in place any agreed arrangements to manage the border in Ireland. The UK could (possibly) decide to turn a blind eye. But the land border will represent the external frontier of the EU’s Single Market and Customs Union and it is hard to envisage how they would manage that without some sort of controls in place.” (House of Lords, P: 17, 2017).

A complete ‘no deal’ outcome would be deeply damaging for the UK. It would bring UK-EU cooperation on matters vital to the national interest, such as counter-terrorism, police, justice and security matters, nuclear safeguards, data exchange and aviation, to a sudden halt. It would place the status of UK nationals in the EU, and EU nationals in the UK, in jeopardy, and would necessarily lead to the imposition of controls at the Irish land border” (House of Lords, P: 44, 2017).

The Conservative Party after this report is released cannot say the “No Deal” is a good deal, since the effect on their own and the business community is damaging. The movement between the UK and the EU will be hurt. It is just a matter of how hard and how strained the sudden change between the UK and EU occur.

The words of the report is showing just brief reflections of how a non-deal would effect the UK. Therefore, the Tories should do whatever they can to let the negotiations go smooth and make sure the separation goes well for all parties. That the borders between Ireland and European Union is not put on hold, but actually have tariffs and have regulations for movement after they left. If it is for the movement of the people or imports/exports of services and products. We can clearly see by the information collected into the House of Lords Report. That the “No Deal”, will make certain industry suffer and make the transition ever more costly for business, which will also hurt the people who has to pay more for their services/products.

If the Conservative Party still pounds and says that a “No Deal” is still okay. Then they are not looking into or not telling the truth about the implications of that. The Tories better come clean try to work against the clock for the betterment of their citizens. They have a mission to secure their citizens and their future on the outside of EU. No matter what that is, the UK has to make sure the provisions and regulations are put in place, so people and businesses can work under new agreement between EU and the UK. Peace.

Reference:

House of Lords – European Union Committee – ‘Brexit: deal or no deal’ (07.12.2017)

Brexit: Theresa May was DUPed today!

Ouch! Today the Democratic Unionist Party (DUP) Leader Arlene Foster and her agreement with the Conservative Party and Prime Minister Theresa May blocked a possible agreement today in Brussels. The European Union and United Kingdom negotiations to get first agreement and end Phase I is stalled for yet another time. Even as the power-players of the Brexit is coming to the forefront. There are vital signs on the horizon and it makes sense.

The Irish Government and their veto is vital for the European Union and their settlement with the United Kingdom. The Republic of Ireland as a Member State has an important role in the negotiations with United Kingdom. Therefore, after the meeting between Donald Tusk and Leo Varadkar, where the President of European Council promised to respect and honor the needs of the Irish in the negotiations. Clearly, showing signs of importance for Union and their Member State.

So now days after and there is a lunch with negotiations between the President of the European Commission Jean-Claude Juncker and United Kingdom Prime Minister Theresa May. As they we’re ending negotiations and there was talk of a special agreement between them. The Northern Irish DUP was ready to go public and say what sort of offer they want in the agreement. Also, show their power and their means within the Tories-DUP Government. As expected when the agreement came in play, the DUP would have the upper-hand over the Tories, since the Tories needs DUP more than DUP needs the Tories.

Now with possible special economic zones where they are still part of single-market and free-trade zones. Will easily offer a conundrum for the Tories. Since if the Northern Irish get so on the will of Dublin and EU. Then, the Scottish, Welsh and London wants similar treatment. That meaning that the City of London, the Financial institutions and European Banks wants to secure this sort of arrangements. So that the tariffs and the expenses crossing borders with these services will not change when the Membership finally ends.

We have already seen First Minister of Scotland Nicola Sturgeon asking for special treatment, also the London Mayor Sadiq Khan, First Minister of Wales Carwyn Jones have all asked for favors treating their regions with the same favor as Northern Ireland. Northern Ireland doesn’t only the direct border issue with the Republic of Ireland, but also have special place within the Tories Government. This is all making the Brexit negotiations hectic.

Because, all of these leaders wants the best for Edinburgh, Cardiff and London. The thing is when you open one door, you don’t always know what appears. In this instance, if the Tories and DUP opens up for special treatment of Belfast, than Edinburgh, City of London and Cardiff want similar efforts thrown their way. That is within reason. I am sure David Davis when discussing matters with Michael Barnier, knew about these sketchy, but notable pin-points. To secure a grand deal for all parts of the UK. If not and most likely he was winging it and hoping nobody was paying him any mind or consideration.

Because the Leo Varadkar said in a press conference that the text agreement on the Irish border was agreed upon, but suddenly the United Kingdom couldn’t agree upon it. This happen after Theresa May had a phone-call with Foster, just after Foster and the DUP had their own press conference. Clearly, the DUP haven’t agreed upon it and want to set their foot down.

Today are proving how hard it is for the United Kingdom to have one line and walk in one separate vision towards ending the membership. Since if the one part of their own Union get special treatment, than the Welsh, Scottish and London is expecting similar their way. So there will only be hot pockets in Manchester, Swindon and Newcastle, where they are outside the free-trading zone and single-market, as the Brexit was supposed to entail. That because the Northern Irish question will not only be answered by London or Belfast, but Dublin will have their say in the arrangement of the border.

Dublin have Brussels and the Membership inside the EU. So their veto and stopping of an agreement in powerful. As well as their desire to respect the Good Friday Agreement. The DUP has power over the Tories and London, but have initial power over Brussels. Brussels will listen to Dublin before they listen to Belfast. That is just common-sense. Since Belfast will follow London… ‘

So the DUP could block the Tories in Brussels today, but they cannot push it to far. If they try to, then the agreement between them will fail the government and not extend a hand into the negotiations. So they can get into Phase II and answer other questions the UK needs to address concerning leaving the EU.

This one will not end. And the self-destruction don’t need to come from outside when concerning the UK. The UK can dissolve themselves and hurt themselves whenever needed. The UK are now begging for mercy from Belfast, London needs Belfast. That is why May gave-up the text and border agreement that was ready to fix over lunch today. Clearly, the DUP, they duped May and enjoys it.

We can wonder how May feels when arriving back in London.. She has now been humiliated by their own partner in the government. It must be weird to May. Who cannot win easily and cannot get a stable approach. Today the strong and stable government pledge of General Election 2017. Seemingly seems like a far fetched dream and closer to nightmare. As May cannot even work without being stifled by Foster. Peace.

Brexit: DUP leader Arlene Foster – “we will not accept any form of regulatory divergence” (04.12.2017)

Opinion: President Akufo-Addo message on development is what the world needs!

Yesterday, the Ghanian President Nana Addo Dankwa Akufo-Addo addressed the Press together with the French President Macron. As he did this he asked serious questions about governance and development. Akufo-Addo proved with brilliance what many people are saying about the African continent, but isn’t heard from the people in power. Akufo Addo actually wants like all other sovereign states to be charging his own people for the services they are getting and not handouts from strangers abroad. That isn’t noble, that is Statesmanship and responsibility. As he don’t want aid, but trade. The President wants Ghana to make it on its own and with its own resources, instead of billing the tab from afar.

All nations and all presidents should seek this paradigm. His own words are powerful and it is needed, in times when states are either addicted to aid or borrowing funds at levels that are destroying the economies. These words and shift should be taken by all states who are used to aid. So they can prepare their citizens and their institutions to be built. So that governance and the government can deliver services to their public.

Addressing a press conference with France President Emmanuel Macron during the latter’s one-day working visit to Ghana on Thursday, President Akufo- Addo said African countries cannot continue to make policies based on the support the Western world can give. He said, “Our responsibility to charter a path which is about how we can develop our nations ourselves. It is not right for a country like Ghana, 60-years after independence to still have its health and education budget being financed on the basis of the generosity and charity of European taxpayers” (…) “We need to have a mindset that says we can do it… and once we have that mindset we’ll see there’s a liberating factor for ourselves,” he said. Akufo-Addo said the only way Africa can stop its young men and women from migrating to other countries to seek greener pastures is to put in place systems that work. “We want to have those energies working inside our countries and we are going to have those energies if we begin to build systems that tells the young people of our country that their hopes, the opportunities are right here with us,” he stressed” (…) “Our concern should be with what we need to do in this 21st century to move Africa away from being cup-in-hand and begging for aid, for charity and for handouts,” he said” (Ghanaweb, 2017).

I’m European, I don’t care what Macron said or wanted to say after hearing Akufo-Addo speech. It was powerful and needed. The words that is expressed and the needed shift is there. Not that charity or aid should automatically stop. But the world, the leaders and the states themselves. Needs to find their way to sustain and develop mechanism for collecting revenue and also tax properly services. Secondly, needs proper guidelines and institutions to sufficiently create growth and stagger inflation. Combined with investment in not only extraction and producing crops, but also create products with it. So that the state don’t only get the low value export, but get refined and developed products on the world market. That isn’t an easy fix and has been tampered-on ever since independence and the world order hasn’t made it better too.

Initially, the power lays in the hands of the leadership. In the hands of people Akufo-Addo and others. Who can leave behind institutions and markets, that can leave behind educated and industries that brings wealth not only to a chosen few, but to the GDP of their respective nations. While stopping the current fix and re-up of more aid donations and charity from European taxpayers.

I hope that the African leadership are listening to this and actually follows this. To be truly independent. Be developed and generate the wealth the African people deserve and the stability of institutions it also should create to prosper. Maybe, not leadership as western-democracies, but in states and elected leadership that takes responsibility and uses the skills and resources for the benefit of all citizens. Not only for corporate citizens, but all of them. Building states and building democracies where the people and state are working for a common-goal. The betterment and changing today for the future. Not awaiting handouts from Berlin, Paris or London. The Ghanaian republic deserve this, they deserve to handle on their own, all former colonies and former protectorate deserves this. Just like the European republics and kingdoms are responsible for their own finances and economy. They are not awaiting funds from China or US to save them…

The same we should wish to say about African state, who are begging for donors and loans to fill the void of own taxation and revenue. Therefore, the speech from President Akufo-Addo deserves credit, not because he is African and wants to get rid of the hands-out. But because he speaking the truth in general. Every single statesman on planet earth, should work for this goal, no matter which continent and whatever country they are running. It doesn’t matter, all citizens and states should work for this common goal that President Akufo-Addo speaks off. Also, European Nations that are struggling with debt and with deficit like Greece and Italy, should also work for this goal and not be saved by other institutions. This is a world-wide issue, not only on the African continent. Peace.

Reference:

Ghanaweb – ‘Africa must stop depending on foreign aid – Akufo-Addo’ (03.12.2017) link: https://www.ghanaweb.com/GhanaHomePage/NewsArchive/Africa-must-stop-depending-on-foreign-aid-Akufo-Addo-606111

Opinion: The Tax Bill Passed in the Senate, shows the world who is important for the GOP!

The Republican Party and their representatives and Senators have now shown their loyalty to the donors like Koch and corporations who are supporting their campaigns. The Campaign funding and party is the reason for all of this. That the Corporate America get a say in Congress and pay-off their debt to the donors. This sort of activity shows that the voters and citizens now is second fiddle. The most important piece of legislation is that it grows the deficit, that the Democratic Party and Barrack Obama had to be wise about. While the Republicans themselves can risk the economy, because the legislation benefits their donors. While the citizens will pay more tax with time.

The CBO themselves said this mid-November about the Tax Cut and Jobs Act: “The staff of the Joint Committee on Taxation determined that provisions in the Chairman’s Mark would increase deficits over the 2018-2027 period by $1.5 trillion (not including any macroeconomic effects). By CBO’s estimate, additional debt service would boost the 10-year increase in deficits to $1.7 trillion. As a result of those higher deficits, debt held by the public would increase from the 91.2 percent of gross domestic product in CBO’s June 2017 baseline to 97.3 percent” (CBO, 13.11.2017).

So the representatives and senators who voted for this yesterday are not only giving the corporation a giant tax-break and making for changes that are for the benefit of the wealthy. But at the same time the estimates are that they are breaking the state reserves and the gross domestic product. They are making the state bankrupt for the benefit of the wealthy. While they are cutting needed services and adding taxes on the middle-class and the poor. Draconian law if there ever was one. This is the opposite of Robin Hood. This is midieval and bourgeois of them. The Republican Party have no given all freedoms and liberties to the top 1 percent of the population. While the rest have to stagger themselves and with time pay more and more for basic needs. The only Republican Senator who voted against was Robert Phillips Corker of Tennessee. The rest was democrats who voted against it too!

Here is later in the month estimate by CBO, which is also damning to the results of this legislation:

According to JCT’s estimates, the largest revenue reductions would result from the provision that would modify income tax rates and brackets: Revenues would fall by $1,165 billion and outlays for refundable tax credits would increase by $9 billion over the 2018-2027 period. The increase in the standard deduction would reduce revenues by $654 billion and increase outlays for refundable tax credits by $83 billion over the same period, JCT estimates. Repealing the individual AMT would reduce revenues by $769 billion from 2018 to 2027” (…) “Repealing the Individual Mandate. The bill’s most significant effects on outlays would occur as a result of the elimination, beginning in 2019, of the penalties associated with the individual mandate” (…) “The number of people with health insurance would decrease by 4 million in 2019 and 13 million in 2027” (CBO, 2017).

So while the Federal Reserves are getting less taxes in, the same state also repeals parts of Medicaid and ObamaCare offerings to the impoverished part of the population. Therefore, this tax-bill is also hurting the public who needs substantial coverage and also medical support to able to afford healthcare. This bill is really showing the riches eating more and paying less to big-society, while the poor will suffer even more. Because the Republican Party only has the interest of their donors and their corporations who are lobbying and paying their campaigns. That is now evident with this votes and this legislation. As they have kept the whole piece in the dark and amended in the last minute. Even rewriting directly on the legislation with handwriting. Not having time to check the consequences or having reports on the possible deficits or even damage it does to the citizens.

That the Republicans are doing this with majority in the House and Senate. Shows who they obey, who they trust and who they serve. The Republicans don’t serve the public, they serve the donors and the corporations. They don’t represent the people best interests, but the Multi-National and Big-Business. They are corporate stooges who are making sure the ones who are donating to them are getting some well deserved tax-breaks later. The deficits and the loss of tax revenue combined with the added taxes later on the public. Doesn’t seem to mind the Republican representatives and senators. They are just following orders of the ones who are paying for their PACs and their SUPER PACs. They are just listening and following the guidelines given by the corporations donating to them.

Its hard not to see it differently, since this isn’t to make the American republic any better. This legislation doesn’t make any other sense. Than the Corporations are walking inside the State Reserves and getting their money back. Instead of paying something for their rights to do business in the United States. Soon the people are paying the corporations not only for their services, but also for their benefits of actually doing business there. They are getting both by the hook and by the crook. This is not a good look. It is a billionaires dream and not for the working-class, neither the lower middle-class. They are put into the shadow and used as pawns by the Republican party.

This bill is Koch Industry and Koch supported in many ways, but also other conservative donors wet-dream. They are so having a hard-on by this bill. Because of this mess, they are ready to nasty and nitty-gritty with the public. Finally they are having their pay-day and their pay-off for years of supporting and donating funds to these politicians. The Senate and House is now bought off and their ethical backbone isn’t there. These Senators and these Representatives aren’t free-thinking individuals, but they are only a useful tool for the corporations and lobbyist to get their will.

In the same effect written by Public Citizen recently:

““The alliance between the Kochs and the Trump administration on the Republican tax bill has become so strong that lines between Koch brothers and Trump administration efforts have blurred. That was the case in July, when Treasury Secretary Steven Mnuchin held a panel discussion on tax issues with Americans for Prosperity President Tim Phillips and the White House’s Marc Short. At this event and others, the Koch groups claimed that their desire was to “unrig the economy” by enacting tax cuts for giant corporations” (Public Citizen, P: 14, 2017). “The presence of so many Koch-affiliated political operatives in the Trump administration underscores how Trump has betrayed his supporters and contradicted his pledges to stand up for forgotten Americans against powerful interests. In an administration that lacks a clear policy agenda or expertise, Koch aides have been happy to fill the void with specific ideas to enrich corporate interests and harm the public as a whole. This agenda betrays the central idea of Trump’s campaign: that an outsider was needed to stand up for the little guy against the powerful” (Public Citizen, P: 34, 2017).

With this knowledge and going back in time, just a few months, you can see that the one of the biggest donors has been swaying the White House to change tax-policy in their favor. The irony is that all of this is betraying his promises. But all of the representatives and senators are following suit. Yesterday, is a proof of the control the donors and corporations have over the political elite within the Republican Party. They might have the same over the Democrats, but they didn’t vote this legislation in, the Republicans did!

It is their legacy and their decisions are now making sure the republic and the state will suffer. So that the state can give tax-breaks and tax-relief to the wealthy and businesses over the citizens. If you don’t believe it. Check the numbers, check the public oversight of who pays the PACs and SUPER PACs. Check who pays for campaigns and then check who gets less taxes from 1st January 2018. That is easily quid-pro-quo. Nothing else, this isn’t a masterpiece, this is vomit and disgusting misuse of power and authority for the interests of the rich. They not shielding the weak and poor, but securing their demise. Peace.

Reference:

CBO – ‘ Reconciliation Recommendations of the Senate Committee on Finance – As ordered reported by the Senate Committee on Finance on November 16, 2017’ (26.11.2017) link: https://www.cbo.gov/system/files/115th-congress-2017-2018/costestimate/reconciliationrecommendationssfc.pdf

Public Citizen – ‘The Koch Government – HOW THE KOCH BROTHERS’ AGENDA HAS INFILTRATED THE TRUMP ADMINISTRATION’ (30.11.2017)

Brexit: Dublin (the Irish) now have the upper-hand over London (the British) in the negotiations!

Today, it’s been proven by statements between Donald Tusk and Leo Varadkar that Theresa May and Arlene Foster has a hurdle to pass. Not only respecting the Good Friday Agreement and that provisions. But also now the center stage isn’t in London as the Tories-DUP Government have claimed, they are starting to swim alone and struggling to show their transparent negotiations with the European Union (EU). Dublin have now the upper-hand and Tusk has told world. That is new world-order for London, who has in the past muffled a lot with the Irish. Therefore, historical line of the British over the Irish is now fad and the European Union is sanctioning it.

Donald Tusk Statement to the Irish:

It is no secret that we discussed Brexit with a special focus on the border between Ireland and Northern Ireland. I came to Dublin to reassure the Taoiseach and all the Irish people that the EU is fully behind you and your request that there should be no hard border on the island of Ireland after Brexit. The Irish request is the EU’s request. Or as the Irish proverb goes: “Ni neart go cur le cheile” (There is no strength without unity)” (Tusk, 2017).

Arlene Foster message to the Tories:

Amid reports that Dublin and London could be close to a deal that would avoid a “hard border”, Ms Foster went on the offensive to insist that she will not accept a new border “in the Irish Sea”” (…) “Ms Foster said that Ms May already “has been categorical” in accepting the DUP requirement. “Her Majesty’s government have a clear understanding that the DUP will not countenance any arrangement that could lead to a new Border being created in the Irish Sea,” she said” (Moriarty, 2017).

Arlene Foster has leverage concerning the Tories-DUP Agreement, but the United Kingdom also has the Good Friday Agreement and also negotiations with the European Union. When concerning Irish border and trade, the veto and power-player is now the Irish government. It is not in London and the with the negotiation team of the Tories-DUP to Brussels. They are even salvaging as it is.

Brexit negotiations are now officially on Irish terms, especially their wishes for the borders. If the Irish wants soft or hard borders, even if they have to make it in a way where still the United Kingdom is an officially third country and with those regulatory borders. Still, the can be specialized agreements between the Irish and the UK. That depends on if the Northern Irish and the London can accept the boundaries and the tariffs. Also the possible movement between them as well.

It will now depend on Dublin, not London. Irish has the upper-hand in the negotiations and the Tories-DUP knows this. The Irish can veto if they don’t agree with negotiated agreements that has been made in Brussels. Clearly, Foster and May must feel the pain. As they are not as high and mighty. They actually have to make sure the Irish feel respected and have their way. If not, the Irish can stifle the process and make it harder for London. Secondly, London have to accept it, since the Irish can veto. Peace.

Reference:

Moriarty, Gerry – ‘Arlene Foster: DUP will not accept Brexit border in Irish Sea’ (30.11.2017) link: https://www.irishtimes.com/news/ireland/irish-news/arlene-foster-dup-will-not-accept-brexit-border-in-irish-sea-1.3311275

Tusk, Donald – ‘Remarks by President Donald Tusk after his meeting with Taoiseach Leo Varadkar’ (01.12.2017) link: http://www.consilium.europa.eu/en/press/press-releases/2017/12/01/remarks-by-president-donald-tusk-after-his-meeting-with-taoiseach-leo-varadkar/#

FinTech Companies in Kenya: Are now evading the personal space of costumers to provide them services!

Today, I will write about how international businesses are using their power and their markets strategy, while people are giving up their private communications and other vital information for simple transactions between family and friends, also when borrowing micro-credit or buying solar-cells through credit. This is all based on the Privacy International recently released report and the quotes are taken from there. It shows vital information taken from citizens who uses apps and financial services in their daily lives. Clearly, they have accessed certain freedoms for the trade with these Kenyans. The business transactions and the trade is not only making direct profits for the corporations allowing direct transactions, but also delivering services like payday loans and buying equipment. Still, it has a special price and they have to sign-up to give away certain aspects of their lives to gain this. That is what is interesting because it says something of how much of the personal space these corporations are getting from the persons they are profiting from!

The term ‘fintech’ has been defined by PricewaterhouseCoopers (PwC) as: “a dynamic segment at the intersection of the financial services and technology sectors where technology-focused start-ups and new market entrants innovate the products and services currently provided by the traditional financial services industry.” (Privacy International, P: 10, 2017).

Yet a change that has not been much explored is that M-Pesa also produces a vast amount of data for the telco Safaricom. Each of the millions of transactions that take place a year tell a story. They tell the story of how the small business is operating: the money they’re sending to their suppliers, the transactions that are taking place. But it tells other stories as well: the money that comes in and then is sent to the hospital. The school fees paid by the biological father, unknown to anyone except the mother, father and Safaricom. But there is also a way in which this data is known by third parties. The transmission of the content of the money transfers over M-Pesa is encrypted. However, the details of any transactions are sent, unencrypted, by plain SMS. Even if M-Pesa transactions themselves are sent via secure and encrypted means, the account information is not. The messages that someone sends for receiving or sending money include the name of the recipient (from the registration of the SIM), the amount sent, and their current balance. This facilitates the gathering of personal data by apps. The fact that the transactions can be tracked becomes a large part of the power of the lenders, as in the Kenyan example, leaves a trail via the M-Pesa SMS messages for both customer and retailer. As shall be illustrated, this is an aspect of M-Pesa of which fintechs are able to take advantage” (Privacy International, P: 29, 2017).

Tala App:

From the data provided by the app, decisions are made about whether and how people repay their loans. One of the key pieces of data is to analyse the content of SMS messages for the records of M-Pesa payments. These are very valuable records to analyse; for example, if the person seeking a loan has a small business, it is a good measure of the health of the business and the money entering and leaving the business. But, according to Tala, it can also be used to analyse how people are actually using their loans, as frequently the money they receive from Tala will leave someone’s M-Pesa account immediately (for example, to pay school fees or a hospital loan, or an individual). But the analysis of the data by Tala extends beyond this, to make analyses based on data and information that are, at best, unexpected to be used for credit scoring. For example, Tala analyses call logs: their analysis has found that people who make regular calls to family are 4% more likely to repay their loan. To do this analysis, they need to know who your family is: from the content of text messages that call someone “mama”, and the pattern of calls” (Privacy International, P: 30, 2017).

Branch:

One difference from Tala is that Branch also makes use of Facebook for authentication; as discussed below, this is allowed under Facebook’s terms and conditions. Another factor that Branch uses for its decision-making is the behaviour of your friends, and their repayment patterns for Branch loans. How does Branch know who your friends are? They have a refer-a-friend feature (as does Tala), which is one source of this data. But they can also see your Facebook friends, and your call log to know who is contacted regularly” (Privacy International, P: 31, 2017).

M-Kopa:

The data that M-Kopa gathers from the device via the SIM is information like location (using cell data, not GPS), the charge level in the battery, and what devices are plugged in. They will also soon be gathering data on the television programmes watched. This specific data on programming is not data that it is planning on selling, but rather to use to develop its own services in the future. M-Kopa’s website states that, “After completing payments, customers own the product outright.” However, the customer does not own their data. The terms and conditions of a M-Kopa loan make the company’s position on data clear: “M-KOPA shall have absolute and sole ownership of … the data which is obtained by the Customer’s use of the Device.” Customers have no right to even see their own

data, apart from the provisions under Credit Reference Bureau rules. For M-Kopa, it ultimately comes down to a business decision: “If data privacy was important for the Kenyan consumer, we would do it,” states Chad Larson, the Chief Credit Officer at M-Kopa. At the same time, both M-Kopa and its investors have a viewpoint that their use of data is ethical” (Privacy International, P: 32, 2017).

Control over the data:

A significant issue with the fintech companies in Kenya, is that they keep access to the data. They keep the data—and, in some cases analyse it, even if the user has stopped being a customer of theirs, and has deleted their app. Branch is explicit that it keeps the data even after a user uninstalls the app, and admits it is possibly doing further analysis on it, “we have that right.” Tala encourages people, even if they have been rejected for a loan, to keep the app; if they do delete it, Tala retains their data. This is so that, if the customer returns later, they can reinstall the app, go through some simple KYC checks, and be able to borrow again. M-Kopa, on the other hand, continues to collect data from the device even after the loan has been repaid” (Privacy International, P: 33, 2017).

Just as this reveals that Safaricom, the partly owned Vodacom Telecom Business have no trouble through the M-Pesa, the Cellphone Mobile-Money Transactions, that they can hold onto all information between all parts of the transactions. Like how a person send the messages of giving money to friend/family and at what point they picking up the mobile-money. This personal data is all incorporated into their apps, as they provide the services and keeps this fintech data on each of their clients.

As we see with the Tala App, which is also used to get loans. Tala analyses the personal SMS’s from the client to either give or not accept proposals for loans from their services. Tala are looking into the M-Pesa messages given to the client and are scanned by the app. To see if the client can actually be able to repay the debt possible sign-off from Tala. This proves that the Tala App is checking the credit history done with the services of M-Pesa, which is Safaricom/Vodacom. Branch another Fintech app is taking it further, they are also analyzing your behavior and who is your refer-friend on Facebook. They are clearly entitled to the private information of your networks before you get a loan. So they know exactly, who and when you contact friends and family on social media before giving you a loan. It shows how personal and how much information on app can get before you get the services needed from them.

M-Kopa are another one, who is directly saying that all information collected from their costumers are their to own and to use for later costumers. It can also be used after the usage. More of these Apps seems to do so. They are keeping this personal data even after the transactions, the loans and the purchase. This can be used to further get clients and knowledge of when the costumers need it more. So they can get them “addicted” to the services. We have no idea how they store this personal data or who they trade it with after gathering it all.

This should all be scrutinized and questioned, as it breaches with personal space collected with marketing and simple ploy to generate enough information to be able to gain the services from the companies. These companies are vultures of the costumers private space and uses it as leverage for their trade.

It is worrying how far they are taking it and how much personal information they are gathering to give them these services. Peace.

Reference:

Privacy International – ‘Fintech: Privacy and Identity in the New Data-intensive Financial Sector’ (November 2017)

Brexit: Guy Verhofstadt letter to Michel Barnier – “The European Parliament expects more on citizens’ rights and much more on the Irish border question” (29.11.2017)

Brexit: DUP’s Foster deluded ideas of NI’s Post-Brexit Border!

There are sometimes, you wonder if someone actually thinks through the words coming out their moths. Especially leaders and provider of needed support of the Conservative Party (Tories). The Democratic Unionist Party (DUP), are proving their loyalty to London and United Kingdom (UK). That is not surprising that she did so and that her party does so. But her quotes and ideas is deluded and a dream, which will be impossible. It’s like if Arlene Foster thinks she has the upper-hand and can take the European Union by the balls in the negotiations, because no-one cannot survive without Belfast or any of the mineral wealth, which exists in the Northern Ireland. Just read her statement!

Arlene Foster on NI Border Plans of Post-Brexit:

Earlier this week, it had been suggested that Northern Ireland might remain in the customs union after Brexit, to prevent a hard border between itself and the Irish Republic. But, speaking to the DUP annual conference in Belfast, Ms Foster made clear that Northern Ireland would leave the customs union” (…) “She said: “We will not support any arrangements that create barriers to trade between Northern Ireland and the rest of the United Kingdom or any suggestion that Northern Ireland, unlike the rest of the UK, will have to mirror European regulations” (…) “The economic reality for our economy is that our most important trading relationship is with the rest of the United Kingdom and we will do nothing that puts that at risk in any way” (…) “We welcome the assurances from the Prime Minister and the UK Brexit team that no such internal barriers will be countenanced and that as we joined the then European Community as one nation we will leave as one United Kingdom.” (Peck, 2017).

I don’t know if she was dreaming, but it doesn’t make sense. That Northern Ireland will not have internal borders, meaning they will not have border with Ireland. The Republic of Ireland is part of the European Union and their Costumes regulations. So there will be hard border, as the EU and UK are becoming separate. This will mean, that on the borders between Ireland and Northern Ireland. There will be some sort of checks and tolls. The tariffs and also other registrations of movement, which is natural between to sovereign states.

What is weird is that she expects the borders to be soft enough as they are now, but still leave the Union together with the UK. Its like she thinks she has the good hand in this, since is in cahoots with London against Dublin. Like Dublin and the Irish Government have no power within the European Union. Secondly, if your leaving the Union, you are not making it easy to have soft and open boarders. There will specifications and implications.

Therefore, the whole idea of this DUP leader and important part of the Tories-DUP are showing their estranged dreams. It does not make sense. Its a mockery and not cool. We can wonder, if this is the reason for the chaos within the Tories Government, since the DUP and their demands don’t even make sense, not even common sense.

They want to stop eating cake, but still wants a slice. You can’t both have cake and not have cake at the same time. You either eat cake or your not. It is that simple, but I think it’s not so for the DUP, apparently. Peace.

Reference:

Peck, Tom – ‘Arlene Foster writes to 27 EU leaders to categorically reject Northern Ireland staying in Customs Union’ (25.11.2017) link: http://www.independent.co.uk/news/uk/politics/arlene-foster-brexit-customs-union-northern-ireland-dup-conference-a8075576.html

Brexit: Lord Callanan spilled the beans, the Tories will keep the public in the dark!

Today, Lord Callanan or Martin John Callanan, who is the Minister of State within the Department for Exiting the European Union (DexEU) has finally answered an important question within the House of Lords. It is essential that the United Kingdom are transparent and open about the Brexit Process, so that the citizens knows what they can get in the future and what will be bargain with European Union. As the negotiations are happening during the next two years. It is official now that the Conservative Party (Tories) and Democratic Unionist Party (DUP) are planning to keep the people and the representatives in the dark. That is their mission to not tell about possible consequences or affects of possible agreements with the European Union. That is initially what Lord Callanan did today. Its weird that it happens in a democracy and with a country that has such a history. But clearly, the Tories prefer dictatorship and work with impunity, instead of being transparent and having an open government to their citizens. That is proven with this sorts of acts and reasoning.

Question asked by Lord Stoddart of Swindon on the 13th November 2017:

To ask Her Majesty’s Government whether they have any plans to publish a document setting out the political and economic benefits to the UK of leaving the EU” (Lord Stoddart, 13.11.2017).

Answer by Lord Callanan on the 23rd November 2017:

The people voted to leave the EU in a referendum which Parliament voted to hold. A clear majority of the electorate voted to leave the EU and we will respect the will of the British people. Since then the Government has been undertaking rigorous and extensive analysis work to support our exit negotiations, to define our future partnership with the EU, and to inform our understanding of how EU exit will affect the UK’s domestic policies and frameworks. This includes a full suite of economic analysis, as you would expect from a responsible Government. This means looking at 58 sectors as well as cross-cutting regulatory, economic and social issues to help inform our negotiation positions. We have been clear that we recognise Parliament’s rights relating to the publication of documents. However, ministers face conflicting responsibilities – such as a clear obligation not to disclose information when doing so would not be in the public interest. And Parliament has previously voted not to release information that would be prejudicial to our negotiating position” (Lord Callanan, 23.11.2017).

We now know that the Brexit Assessment Reports will not surface, unless they are leaked by disgruntled employees within the Department. Most likely not as the Minister David Davis and Lord Callanan are keeping the issues to their chest. Not dropping any possible damaging reports or even positive changes from leaving the Union. The Tories are happy and content with leaving people in darkness. Leaving the union without transparency and telling the truth. We know that they are trying to discourage and even showing display of disregard of public scrutiny, as they cannot stomach to explain their assessments with the public. We can wonder what is their strategy, if that even exists.

The British people should be worried about this sort of actions. That the Tories doesn’t care that the public don’t know or have no idea of the impact of Brexit. Because the government wont let them see it or read about it. It will be dossiers and rumors, but no real assessment of the possible changes for all industries and society in general. If it is about toxic waste or financial transactions. We don’t know how that will be impacted by the Brexit. That is the result. The Government are not shedding light and hoping people enjoy being in darkness, with no enlightenment and no true numbers of possible impact. That is what is worrying. It is also a sad day for the British Democracy and British people, who voted for it, but will not know until it happens. What it will mean for them and their borders. Not that the Leavers Campaign told them anything of profound message on how it would be.

We know now for sure, the Tories-DUP government are not transparent, not honest and not as expected. It is a disgrace and this proves that the troubles ahead are bigger, than the Tories would like. Also that the affect of the Brexit might be more damaging, than what they want the public to know. Since they are hiding the facts and the assessments. They cannot let the public see it or their representatives, because the public might be shocked and awed by the results of it all. That is why they are silent and not telling it as it is. Peace.