MinBane

I write what I like.

Archive for the tag “WB”

REDD+ Kasigau Corridor Project: Lacking results and with questionable affiliations!

There are a December 2016 report written by Jutta Kill and published in parts by the European Union. The name of the Report are: “The Kasigau Corridor REDD+ Project in Kenya: A crash dive for Althelia Climate Fund”. This report tells a worrying story of how a project is a possible revenue source, instead of being there for climate change use or even local development. This sort of project and funding should be used for sort of projected land titles that saves the forests or create land that the owners can earn on instead of destroying the land. Something most of the REDD+ funds and projects is about, making sure the forest and the agricultural lands are kept and saved by the use of funding from donors and project builders.

One of the first hard-hitting quotes from the report are: “In addition, several reports document how land use restrictions imposed by the Kasigau Corridor REDD+ project hit pastoralists and ethnic Taita and Duruma communities particularly hard while these groups receive very few if any of the benefits the REDD+ project provides to local communities” (Jutta Kill, P: 4, 2016).

So if there are donors who seems to be positive to projects and development projects that isn’t being there for the locals, than why are they offering the monies and using the time to facilitate the project in Kenya?

The Taita Hills REDD+ Project in Kenya has been marketed by Althelia, the project developer Wildlife Works Carbon, institutional funders like the EIB and media supporting market-based environmentalism as the Fund’s signature investment. Wildlife Works Carbon has been operating the Kasigau Corridor REDD+ project in south-eastern Kenya since 2005” (Jutta Kill, P: 6, 2016). So with this in mind the Althelia has offered certain amount of money on the table, as this was the signature investment, even as it have no benefit for the local communities. The Althelia had done this: “For four of the projects, the Fund’s annual reports indicate that the investment is made in the form of loans whereas for the REDD+ project in Kenya, the 2015 audited financial report mentions an investment through an ‘Emission Reductions Purchase Agreement’ (ERPA). Four of the five projects are also covered by a US$133.8m loan guarantee that USAID has extended to the Althelia Climate Fund in 2014. As of 31 December 2015, investors had disbursed €18,36m of the €101m committed” (Jutta Kill, P: 5, 2016). So the development project are funded through loans that are guaranteed by the USAID, but extended into the Althelia Climate Fund, so the two are co-operating in the direct funding of the REDD+ Kenya. So they are rubber-stamping and giving faith to the projects.

The ‘Stand for Trees’ Initiative, a brainchild of Wildlife Works and supported by USAID, has become an important source of revenue – some say, a lifeline – for many private sector REDD+ projects” (Jutta Kill, P: 17, 2016). So that the Wildlife Works that works inside this REDD+ project, that are using the funds from USAID and EIB, are complicating it more as the other revelations that should worry the ones who cares about the environment and accountability of ones running it: “The Kasigau Corridor REDD+ project’s financial lifeline came from the International Finance Corporation (IFC), the private sector arm of the World Bank, and BHP Billiton, the mining company with a record of severe environmental damage and forced displacement of communities that stretches back decades and continues to this day” (Jutta Kill, P: 18. 2016). So why would a mining company cares about an environmental project in Kenya, unless they we’re earning funds and getting profits on the project?

You can really understand the issues of the IFC and BHP Biliton involvement, when the local communities gets no benefit or contributing to the projects.

So when you have the Althelia Climate Fund, which is funded with loans from the World Bank private corporation branch IFC and the USAID loans, together in corporation of BHP Bilition, as the REDD+ Project in Kenya is in works with both Wildlife Works, as the ‘Save the Tree’ brainchild. As this was the Althelia signature project. That there are problematic forces in play when the EIB are supporting the REDD+ projects as well, either directly through loans like USAID or like IFC. Therefore, the many actors are surely paying and donating favorable loans so the owners of the fund and the ones living of it makes this the lifeline for the Wildlife Works, even as this one doesn’t have the impact on local communities.

Just as one key observation:

One of the most striking observations was how locally, people referred to Wildlife Works as “the company”. The reasons for this seemed twofold. For one part of “the community”, Wildlife Works is “the company” that instructs guards to confiscate cattle and goats; that prevents the poorest community members in the area from collecting even dry branches for firewood when “the company” itself runs a charcoal production business on the REDD+ project area; that puts up water tanks on residents’ land without even asking permission, let alone paying for the use of the land; that claims to dedicate initially 1/3 of carbon revenue sales to local community projects, but does so in a way that means benefits from these “community” projects are captured by local elites. For example, ranch shareholders who receive 1/3 of the revenue from the carbon credit sales might also sit on the “community development committees” that decide how the 50% of the profit from carbon credit sales” (Jutta Kill, P: 21, 2016).

Another insulting observation:

A carbon offset provider offering carbon credits from the Kasigau Corridor REDD+ project writes on its website that “committees determine what projects to undertake, prioritizing them by need and feasibility. ‘So many people have problems with water, so water projects—water tanks, water pipelines—always come first,’ said Pascal Kizaka, a local chief and committee board member” (…) “Exploring the location of one of the “water pipelines” advertised as an activity of the Wildlife Works Carbon REDD+ project revealed that far from what was suggested by the large placard outside the building (a One Vision Center), it seemed that the Wildlife Works contribution to the “water pipelines” project had been just the guttering along the side of the building’s roof and piping to connect the gutters with a water tank constructed by others. People also commented about bore holes put in by “the company” that had never provided any water” (Jutta Kill, P: 23, 2016).

So the Company, the Wildlife Works are supposed to provide water and pipelines. Still, there aren’t any who has been provided with the water, even as the REDD+ Committee Board Member Pascal Kizaka claims, as the locals and community says otherwise. This together with the lacking proof of the help with carbon credit sales and the control of land. This whole development project seems sketchy and a lifeline for Wildlife Works instead of being there for the local Kenyan Communities. Therefore, the use of IFC and Althelia Climate Fund, seems like way of misusing Carbon Tax and Carbon trading, instead of developing the Kasigau project for the Taita and Duruma communities. That deserves better and also deserves that when people and organizations comes in that they does not earn on their misfortune, but actually comes with projects serving them. If not this is just a way of fraudulent development industry, that no republic deserves. Peace.

Advertisements

Uganda: Letter on Officer’s of the ‘Food Security and Rainfall Awareness Country Campaign’ (18.11.2016)

uganda-awareness-campaign

Footage: On 5 October 2016, AfDB President Akinwumi Ayodeji Adesina receives his African Passport, symbol of continental integration

UN, World Bank, insurance sector tackle climate vulnerability (06.10.2016)

un-idf

NEW YORK, 6 October 2016 – A new public-private partnership between the leaders of the United Nations, the World Bank and the insurance sector has adopted a risk management strategy that seeks to harness insurance to promote economic recovery and resilience to climate hazards and disasters.

The Insurance Development Forum (IDF) said that it has decided to contribute to achieving the G7 “InsuResilience” target of providing 400 million of the most vulnerable people in developing countries with increased access to direct or indirect insurance coverage against the impacts of climate change and related natural catastrophes by 2020.

“For many developing countries with scarce resources, rebuilding is often beyond their means. Typically, a disaster is followed by appeals to bilateral, regional, and international partners for aid relief and financial support,” said Ms. Helen Clark, IDF Co-Chair and Administrator of the United Nations Development Programme.

“This support, however, often falls well short of what is required. Systemic lack of funds and recurrent inefficiency of recovery initiatives on the ground impede progress. Insurance can be an efficient, fast-disbursing mechanism to build back better in vulnerable countries and communities hit by disasters, but also to reduce risks and the costs of risks in the long term.”

The IDF was first announced at the COP21 UN climate summit in Paris in December 2015 and officially launched in April 2016.

It is led by a Steering Committee, chaired by Mr. Stephen Catlin, Deputy Executive Chair of XL Group Ltd., with Co-Chairs Ms. Clark and Mr. Joaquim Levy, World Bank Group Managing Director and Chief Financial Officer. Other Steering Committee members include Mr. Mark Carney, Governor of the Bank of England and Chairman of the Financial Stability Board, and Mr. Robert Glasser, the UN’s Special Representative of the Secretary-General for Disaster Risk Reduction, as well as 13 insurance industry CEOs. Additional governmental and public sector organizations are expected to engage in the coming year.

The IDF adopted its insurance-based strategy when it met on the sidelines of the recent UN General Assembly session. It approved a proposal to create a Technical Assistance Facility (TAF), which will assemble public and private insurance industry resources and tools necessary to support governments in building public-private partnerships that will better manage the financial consequences of climate events and natural disasters while increasing the use of insurance in emerging markets and developing countries. Work has begun to secure funds for the programme.

The IDF’s work is linked with a string of UN agreements adopted in 2015 to set the global development agenda for years to come. They include the Sendai Framework for Disaster Risk Reduction, the Sustainable Development Goals and the Paris Agreement on climate change.

“With growing natural disaster losses it is essential that governments learn how to incorporate risk management fundamentals into their planning, budgeting and governing processes so that their citizens can be better protected,” said Mr. Catlin.

Joaquim Levy, IDF Co-Chair and World Bank Group Chief Financial Officer stated that “many emerging market and developing countries lack sufficiently developed insurance markets, which does stifle growth and has a negative impact not only on business but on general welfare, notably among the poorest. The lack of insurance instruments or broader risk-pooling or risk-mitigation mechanisms is also evident in the public sector, affecting government’s ability to respond to natural disasters and other large-scale events”.

Mr. Rowan Douglas, chair of the IDF Implementation Committee and head of the Capital Science and Policy Practice at Willis Towers Watson, said, “We all recognize a unique moment and opportunity to make a huge step forward in the protection of lives, livelihoods and communities – realizing the benefits of insurance across public, private and mutual and cooperative sectors.”

The IDF focuses on members of the “Vulnerable Twenty Group”, which was set up in 2015 and groups the finance ministers of countries highly vulnerable to a warming planet in dialogue and action to tackle global climate change.

Vulnerable to Shocks: Uganda how drought and low prices could jeopardize Uganda’s Poverty Reduction (13.09.2016)

ug15-09-2016

Press Release: World Bank Group Suspends Financing to the Inga-3 Basse Chute Technical Assistance Project (25.07.2016)

inga3_figure2

WASHINGTON, July 25, 2016 — The World Bank Group has suspended disbursements of funding to the Inga-3 Basse Chute (BC) & Mid-Size Hydropower Development Technical Assistance (TA) Project in the Democratic Republic of Congo (DRC). This follows the Government of DRC’s decision to take the project in a different strategic direction to that agreed between the World Bank and the Government in 2014.

On March 20, 2014 the World Bank’s Board approved a US$73.1-million grant from its International Development Association (IDA) for the project, consisting of Inga-3 BC development support (US$47.5 million) and mid-size hydropower development support (US$25.6 million). At the time of suspension, approximately 6% of total project financing had been disbursed.

The Inga component of the TA project aimed to finance a flexible suite of technical assistance, including strategic advice to the Government, complementary studies, capacity building, and institutional strengthening. The IDA TA project aimed to support a government-led process for the transparent development of Inga-3 BC as a public private partnership. The World Bank Group is in a continuing dialogue with the Government about the implementation arrangements of the project, with the goal of ensuring that it follows international good practice.

The World Bank Group remains committed to supporting the DRC in its efforts to provide affordable and reliable energy for its people and to drive sustainable sources of growth for its economy. Beyond the Inga project, the Bank Group will remain engaged in the electricity sector in DRC by focusing on improving the performance of the State Utility SNEL, rehabilitating mid-size hydropower plants, increasing energy access, and continuing support to regional transmission interconnections.

Opinion: Why is there so little sanction on Corrupt behaviour and why don’t the donors stop the funds?

corruption-1

We should question the ability of certain leaders to be able to squander away government funds, donor-funding while keeping their citizens in poverty and neglect the civil service, the state functions and keeping the state fragile; so that the Executive can brown envelope the Members of Parliament and that other civil servants to get paid, instead of government salaries depend on being paid under table for government delivery.

This is not one nation problem, this is not a one continent problem, and this is a worldwide problem. Not only government acts like this organizations, multi-lateral organizations and businesses. Corporations and other LLCs are also misusing their fortunes and ability to generate wealth for their stakeholders through intricate and complex banking structure that fixes the profits away from the countries we’re they earn high profits; while squandering away the profits so that the owners and stakeholders gain massive funds and leave the consumers, workers and the nations as they keep the funds away from the State of real business.

Tax Avoidance

Why can I address the neglect of government in the same regard as tax-avoidance in modern business, because the same ethics and norms are made and regulated by the Parliaments, Executive Power and by the interests of politicians; that needs funds and create business in their constituency as they earn currency on opening business there. So with that in mind, the way the business is set-up and regulated are by admission from the political framework and laws, not to talk about tax-regulations together with multi-lateral agreements that either opens or closes doors for tax-fugitives from the profitable country.

The Government are the Sovereign Power, the ones that represent and distribute the resources and funds to their citizens through departments, ministries, institutions and programs that are sufficient to make sure of education, security and development of the country. That happens as they can either use their taxes, aid and loans to fund the government work. Well, they could if they wanted to represent the people who paid the tax and elected them.

One key reason for the maladministration and mismanagement from the government are that they are responsible for sham elections and rigging themselves in power; worst case scenario the government and executive took the power with the gun; so the responsibility is more on the ammunition instead of the transparency and accountability towards the citizens. The citizens are supposed to have safe-guards from corrupt behaviour and alleged graft; as the Auditor General and Ombudsman are supposed see through the files and budgets, together with registered procurements, so that the actual facts are the same as the planned efforts from the State.

That is why the breaking figures and knowledge of squandered monies from the funds. Something that shouldn’t be that easy to do or get away with; as so many leaders and executives have saved giant bank-accounts in Swiss Banks and in Tax-Havens. So the humble men from villages all of sudden own 30 luxury cars, 4 mansions and have a wife who spends a ministries months salaries on exclusive clothing and shoes in Paris and London. While the taxpayer are struggling to eat and feed their families, which is an issue that shouldn’t be there when the Executive and wife can have a cortege of 25 cars driving from their State House to their Ranch without any consideration.

Obama Stockholm

The worrying sign is that the International Monetary Fund, World Bank and other Multi-lateral organizations don’t sufficiently sanction this kind of activities or even punish the countries with this behaviour; except when the nations are on their back hunting wild goose. The United Nations and European Union, other Pacts doesn’t even sanction much either. The diplomatic tensions and the wish for resources sometimes stop the knowledge of the thievery, if not to save face of both parties as they doesn’t want the public of the nation importing to know about the maladministration.

What I am wondering with all the corruption scandals, with the rich executives and the haemorrhaging of monies from the state and businesses; It happens daily while the begging for funds from international community and also getting investors from the exterior to invest in business. These businessmen are set in function with civil servant and government officials that are corrupting the state; something that the world knows… and still keeps it going around.

Certainly the knowledge of this isn’t something in the shadow, some places all of this is in the spotlight and expected by the officials, as a second way of getting add-ons on their meagre salaries as the government doesn’t pay enough or on time for the Police Officers and Teachers to secure pay to pay for food and even rent. Therefore the system generate where the Government can’t even supplement funds for their own, while their leaders eat the most delicious stakes. This should be a warning, but the world moves on.

quote-the-givers-of-most-of-the-corruption-in-africa-are-from-outside-africa-olusegun-obasanjo-88-15-33

What worries me… is how this keep on happening with different names, different places and with different funds, while the sanctions and the stopping of funding from the communities doesn’t stop; while the massive overload of stolen monies are hidden and the ability to use this banked currency in developing the state and nation, instead lost in trail of lies and deceit where the accountability got dropped in the ocean.

We should question these transactions and not accept these facts of life, this is the ones that steal the development and progress, steal foreign taxpayer’s monies into personal bank-accounts and private business of elites instead of the public functions as they we’re supposed to go.

I am just writing in frustration… and tired of seeing and hearing about the scandal after scandal… While the ones dishing it out are silent, while the punishment is not happening and the characters who are behind the thieving is walking like kings and queens in main-streets of capitals all around the world. That is what is bugging me. It shouldn’t be like this and the behaviour should be tormented, questioned and also charged for their stolen cash. This cash we’re not automatically made for and created for the Executive’s and their Elites; which isn’t justified. So why does it seem that some people are allowed to steal a country, steal a national treasury and the foreign exchange funds are walking scotch-free while hanging around the mayors and government-officials; but when a pocket-thief or a man stealing a goat, gets detained and not hired again.

The rules for this is provable not equal, not for all men are equal under god, except if you like shrimp. Well, that is not the case in this matter, there are too set of standards, the Executives and their Elites; while the citizens and public are a disgrace and can be disregarded easily, but the rich can get-a-way-jail-free-card! Peace.   

We thought we seen the worst; but the here comes the 20 Point Programme from Mzee!

Saturday Monitor 02.07.2016

Sometimes I think President Museveni is a bit too smart for himself, that must be it, as he have since start of his reign added and amended more plans than useful laws. That is something the world should know by now. He entered his first term after rebellion with the 10-Point Program that was supposed to reinvent and remake the democratic, accountability and facilitate the development of Uganda. Something that has been stalled for wish to stay in power and also his own nepotism, corruption and cronyism in government and state functions in general; together with no-need to leave the militaristic maneuvers of government.

“The NRM under the leadership of President Y. K. Museveni came up with the ten point programe of action. In 1987, Basing on the ten point program, President Museveni launched a Minimum Economic Recovery Programme followed by a series of reforms aimed at restoring macro-economic stability to provide a favourable environment for economic growth and private sector development. The key reforms were, liberalization, privatization, currency reform, changes in tax and fiscal policy plus restraining expansion in government expenditure while maintaining focus on economic recovery and growth” (Uganda 25 Years of Nation Building and Progress, Jan 1986 – Jan 2011, Printed: May 2011).

Museveni Cool Poster

That is why that when I read that President Museveni had the genius idea of a 20-Point Program, I was latterly laughing and crying in sadness of this so-called leader. Who supposed to lead and make change; after thirty years in power with a 81 Cabinet and created astonishing amounts of districts and sub-counties, that every town and nearly all villages have either one or two central LCV and other councilors to be bribed by the central-government. And in his genius attempt to spoilt the trade, he comes with another plan to cover over the atrocities and pledges that we’re recycled under campaigning in 2015 and 2016.

This comes from the leader who of late has already these wonderful plans to hold onto and supposed to finish in his lifetime, as he wants to promise the Ugandans the middle-Income position and also economic progress in the levels of South Korea and Singapore. Though, the corrupt and donor-friendly behavior is still necessary since the Petroleum money, is still not certain as it is still needed more development and investment before the profits from the black-oil drilled in the Lake Albert basin and Albertine region.

The first plan that was supposed to take over the failed 10-Point Program from the Economic and Development of the Republic, where the magical and all-covering; the Second plan the famous ‘Vision2040’, where all pieces of government and private sector we’re interconnected as the NRM-Regime had plans to reconfigure and also establish what they had did between 1986 and 2013. The plan that we’re released in 2013 said this: “a transformed Ugandan society from a peasant to a modern and prosperous country within 30 years”; I do not feel the need to say how much further they have come in the last three years.

Hon. Francis Mwijukye said: "Today I visited Karungu government secondary in Karungu subcounty- Buhweju district where I found students studying under very disturbing circumstances" (Mwijukye, 25.06.2016)

Hon. Francis Mwijukye said: “Today I visited Karungu government secondary in Karungu subcounty- Buhweju district where I found students studying under very disturbing circumstances” (Mwijukye, 25.06.2016)

The third plan that comes to mind was the National Development Plan II (NDPII) who we’re drafted and surely released during the 2015, and we’re written March 3, 2015. This was a plan for the infrastructure projects and the defining projects that we’re interconnected with railroads and also the major road projects of the UNRA, which is certain a magnifying economic prospect as the investments in infrastructure as the unfolding economic problems, that recently was reported from UNRA. So the President has issues with this alone, before releasing the 20-Points Program of 2016.

So with the hearing of a new plan from the grand National Resistance Movement and the Presidency of 30 years, if he had finished or wished to finish the first plan, the 10-Point Program. But, that wouldn’t make the political battlefield and the regression of progress so obvious; if anybody believes he will ever finish a program or even sufficiently have due-diligence behind a new program, you should dream on or reconsider you thought pattern.

With the newly released 20-Program Plan of 2016, is a rehash of old-ideas into a new format with the mix of the Vision2040, 10-Point Program and the National Development Plan II. That is a combined of these visions, as the 10-Point program is totally out of whack, the 2040 is in the midst of it and been in the works for three years without any real progress on the matter. The NDPII is a framework for basic transport and infrastructure that are parts of all the three other plans. So, this is far from finish and with the UNRA troubles, the World Bank suspension and the others issues with financing the grand infrastructure projects of late, while the Standard Gauge Railway and the Northern Corridor Integration Projects (NCIP), which is a collective planning of infrastructure between the East African nations we’re it need cooperative effort from the countries.

issues clinton uganda

So with all of this in mind, when reading the progressive, the revolutionary, the rebels new plan like the monstrosity levels of belief that he can sell yet another amazing plan to the public and donors. The reassessment the donors should do is that this in the mass of affairs and tricks the NRM-Regime have come with for three decades and was supposed to be new-found governance; instead it has been more of the same, just in another name, another package and another head-honcho who been able to smile with Bill Clinton, Gadaffi and all the dignitaries that wanted spend money on his government and newly created institutions under his leadership. This has all happen, while the Western countries have accepted the atrocities and brutality against civilians for the peace and assurance of progression of democratic values that over time have been proven as fool’s gold.

The reality of this new Plan is to repackage the same of promises and the so-called progression of the government institutions and the civil service delivery as hospitals, schools and roads. Through the neo-liberal structural adjustment plan that we’re accepted to get more World Bank loans in the 1980s, while now because of less donor-funding adding more loans into the bloated government budgets together with bigger government spending on growing parliament, growing districts and sub-counties, while the added expenditure on the projects as the rising prices on roads with little due-diligence, higher interests on the fallen loans and the expenses on military equipment. This all with the steady level of inflation and proved little will to change the service delivery from the NRM-Regime, as the international community have let most of it go without any impunity or real care.

Old Stats Uganda

As even the European Union proudly did this recently after the fraudulent election they discredit in their own report, still they we’re so giddy to do this:

“Goverment of Uganda to hold political dialogue with European Union as mandated in Art 8 of Cotonou Agreement” (Emma Were Tinka, 28.06.2016). So the true ethics of the European Union and democratic values can be traded of with a decent agreement and when the NRM-Regime can even be validated by EU, this talk and consider, even sign the agreement, but they might not implement it; as the due-diligence have never been a thing for Museveni, so after all this year? Why should it all of a sudden matter?

This new plan is another one of his schemes and plot to get donor-aid and get funding for his nepotism, his cars and airplanes as the direct budget and the over-priced infrastructure projects have silenced his critics as that have been used on tear-gas, Russian fighter-jets and other needed procurement, not on fixing schools and buying school-books for the students. That is no-need and not proved added value. This 20-Program plan is just non-sense and the ones that buys into it, are long lost causes like Ofwono Opondo and Andrew Mwenda. Peace.

Uganda’s Growth in the Era of Oil and Volatility (Youtube-Clip)

“Despite the slump in global oil prices, the start of commercial oil production in Uganda in 2018 offers long-term prospects to diversify the country’s economy and catapult it to upper middle income status in 30 years, according to the country’s new economic memorandum” (World Bank, 2016).

The ironies of Socialism versus Neo-Liberalism; why I believe in a Keynesian approach instead of the Socialism or the Neo-Liberalism

Socialism churchill

Well, it is about that time, I make mockery of two statues of civilization and ideas that rules the world while not hoping the blindly followers of either comes to attack my person, my thoughts or my widely allegation on the parts. Both of the political views and framework have made a difference and is the reason why we have societies like we have today.

The main parts of socialism is that there is policies and regulations that fit for social and bigger government who cares for the citizens, like subsidized health-care, schools, university, transport and local government. Through taxes and higher fees on produce as the socialism need funding for the ability to make the government organizations and government programs. The Government need more taxes to able to serve the public with what they expect through the socialistic view, while the taxes are set-up in a way that the ones with more income is generating more revenue is supposed to pay more tax; than the ones that are paid less.

So with the big-government and grander government policies comes the address of the public will and citizens loses power, but that for the price of cheaper health-care, schooling and other government institutions. That stops the higher prices and free-market pricing of health care that lets major parts of the society might even be able to pay for the needed operations. So the reasoning and hateful measurement against big-government is wrong in some parts as the people are stronger when we work together and divide the expenditure on the whole society; instead of billing the whole ordeals on the single individual.

free market

Neo-Liberalism is not as straight forward as this is supposed to be measurement to weaken the state, make it liberal and little. Give more power to person instead of the government and give more choices to the citizens of the given country. The issue is that Neo-Liberalism has come with certain ideas and prospects. For instance the New Public Management (NPM) is a Neo-Liberalistic idea. NPM have given the societies and the government who added these policies more watchmen and ombudsmen then before. They have given the power away from the departments and created institutions under the departments with specialist and experts that sets the standard and gives advice to the department. While the departments still need manpower, so need also the lower-expert-institutions. So you have two fronts with specialist working the same field and advising each other. So before NPM most of the experts and brains where at the Department and Local Government that worked with a given subject or the project that needed a specialist; thanks to NPM they have become self-serving and not cut down the amount of bureaucracies have become fluent. As much as the wish for the NPM as parts of the Neo-Liberalism idea, it hasn’t created less government, but more and longer away from the decision making.

The Neo-Liberalism of free-market and starch corporate control have not given added freedom to the consumer. As the markets are controlled by less and less owners and stakeholders; the corporate power have become stronger, but more centralized in conglomerates that issues the policies and secure the profits. The riches of the corporations and the borderlines agreements are built for the corporations not for the welfare for the citizens. The original businesses we’re built for single projects or for fixed procurement that the state and citizens needed like building roads and bridges. Not gaining profits that sky-rocket and then moves away the tax-money into tax-havens. That is the Neo-liberalism ways of economies. In a way the movement of money should happen without government interference or taxation.

The Neo-Liberalism brought also an idea that was worse than the NPM. That was the Structural Adjustment Program (SAP) under the World Bank and International Monetary Fund (IMF). SAP was made in the 1980s to liberate the subsidized agriculture, health-care and other public institutions as government got great loans through the funding of IMF and WB. So they released the governments and free-market ideas that killed the Co-Op’s in the countries that was already lots of them. They had commissions and centralized crop sales through Co-Ops that served the farmers, either they produces cocoa, coffee or tea. This was a standard of fixing training, production and prices to influx together a stronger unity. The ironies of this is that the IMF and WB gave this order through SAP to Low-Developed Countries while the countries that funded this had Co-Ops in agriculture themselves and still have to this day. So with the SAP they made the inside trading before the export more intricate and gave “supposed” more power to the farmer. Instead they became more reluctant and needed more to be careful to whom they offered their crops to. As the traders from capital who went up-country could fix prices and lie about the values to earn more on the trade to export. So the farmer would not get a given price on the world-market because there we’re less voices giving the farmer a hand in the trade of their cash-crops and their goods that they we’re not consuming themselves. So the SAP agreement stalled the government institutions and weakens them together with the trading experience on the ground. The structures we’re given big loans for building up trade-networks and export facilities while dismantling the structures that secured and fueled the industry and agriculture. As the Agriculture and Industry should not get subsidized, but get funding through free-market ideal and that killed the initial funding as the cheaper production came from abroad instead of making it locally. Therefore it is more normal to Chinese, Egypt and Brazilian products than own local products in the supermarkets of Uganda, for instance. Even meat, juice and toilet-paper are imported than produced in the country. That is because of the SAP and the Neo-Liberalism ideas.

zero-hour-contracts

Another important factor of the Neo-Liberalism idea is the abolishing ideas of Workers Unions and trying to ban them. As the Free-Market should fix the pay for the worker and the business it should fix it. That is why there been less strikes and less new Unions in our day. The reason why Unions in our time is important and the socialist idea of them is that the riches of the corporations; does not seem to trickle down to the citizens; it only left back to the stakeholders and owner, not to society or the workers that works for the rich corporations. Settling this is not easy. During the Reagan and Thatcher era tried to kill of the unions for their meddling and dissolve them so to actually centralize power. Instead this killing of mining-unions and other unions in the United Kingdom have weaken the industry and the ability of workers to fix pay while the corporations come with contracts that are good for business, but not good for steady income for proper work. The recent years of cover-ups in Sports Direct that is owned by Newcastle United Mike Ashley that offers their workforce lots of “Zero-Hour Contract”. Zero Hours Contracts work in the way that the employer has more people under their wings without paying extra for them. The Contract gives not benefits or sick-leave. As the Employee is paid by the hours and amount of time they work for the employer and nothing else. So all the benefits is added to the business and none for the worker, who has to fight and bend-over to add hours as the pool of willing workers are there. Even if the Zero-Contracts are bad, the non-Union and not-allowed to unionize work-force cannot go together and fight for their benefits and rights. As the Employer can continue to use and get new workers without having to stand-by them. Sports Direct is just an example of it, there are more business who uses this model and creates massive profits as they don’t have to offer needed benefits or health-care programs to the employees. As Wall-Mart have had low-hourly pay and no health-care benefit while letting their employees sign-up to government funded programs for health-care so that the Wall-Mart employees get little paid and at the same time uses food-stamps and Medicaid instead of Wall-Mart having health-Care benefits. So the business saves the money for salaries and also save the benefits of their employees; this is something you can thank the beautiful neo-liberal ideas.

The difference with the neo-liberalistic ideal of work is that the employee would give sufficient pay and have a contract that benefits the company and the workers. As they would have social responsibility for their workers as they have health benefits through the standard with standard payments of salaries together with state fueled community health care. The Neo-Liberal is that personal pay of the health-care instead of tax-payers money. So the health-care will be opened to the once who can have insurance or ability to pay for it. Instead of funded through the tax-payers pockets as solidarity between all citizens as in the socialist idea. That cannot be seen as a problem for a liberal person, to bring solidarity and also a structured health-care that everybody pays their fees into and when needed pay a small personal fee to get access, instead of footing the whole bill on their own.

Text ZHC SportDirect

Let me finish this up with the ideals that are ironic on the matter.

  • Smaller Government under NPM has actually made more Ombudsmen and Expert Organizations. Meaning that the Government didn’t become smaller, just longer away from the Department to the Experts and the Ombudsmen that the Government want to control
  • The SAP in Neo-Liberalistic method didn’t bring wealth to the countries it was applied to. The Farmers, the government institutions got weaken, while the loans got higher and less development as the Free-Market got the resources, but without control of the Co-Ops or other ways of maintaining support of citizens. The economies became more fragile as a result of the Neo-Liberal SAP then under the Co-Ops with the control of selling cash-crops and so on.
  • The Free-Market idea of Neo-Liberalism while destroying Labor-Unions to secure more government control of the market. While deteriorating the labors ability and therefore opening for the “Zero-Hour” Contracts that gives all the advantages to the corporations and none to the employee who only get security for the hourly work and nothing else for the employee. That would not happen with stronger unions and government who could enforce the rules for corporations.

All of these is ideals against each other I myself is not a clear socialist, even if I am raised on socialist country in a social-economic balance system. I myself is a clear Keyenist in the way that I believe in free-market and free-society to an extent. That extent is that the governments automatically bails out the necessary institutions and have a hand into the banks and other needed businesses of a society. That the workers are secured and fixed through strong barriers so that the market is made sure that the governments, and also facilitate the marker for the corporations. So that the market will have input from the government as the eruptions is inevitable and needs a structure to control it.

keynes

This three main components are basic:

  • Aggregate demand is influenced by many economic decisions—public and private.
  • Prices, and especially wages, respond slowly to changes in supply and demand, resulting in periodic shortages and surpluses, especially of labor.
  • Changes in aggregate demand, whether anticipated or unanticipated, have their greatest short-run effect on real output and employment, not on prices. Keynesians believe that, because prices are somewhat rigid, fluctuations in any component of spending—consumption, investment, or government expenditures—cause output to change. If government spending increases, for example, and all other spending components remain constant, then output will increase.

So with that in mind you understand why I am in between of the socialist and the free-market neo-liberalism as the Keynesian ideas that are more subtle and securing society as the mixed of government control and free-market gives sustainable societies. Not only full freedom without security for other than the corporations which is the main mantra of the Neo-Liberalism as the individual freedom usually get used by the legal person the corporations and not coined will by the persons themselves as the belief is under the ideology of liberal ideas. Instead of having total control of the state in the Communism, and strong big-government with socialism; but the Keynesian sees it in middle of that and have a free-market with control of the wages and workers by the government. That gives a steady economy and also a greater stability in the values of inflation and stronger value of the person instead of being a commodity as resources in the free-market thinking of the neo-liberalism that have deteriorated the markets and only winner is the corporations; not the fellow human beings. Peace.

Post Navigation

%d bloggers like this: