Cyprus Readies for Reopening of Banks

March 27, 2013 by

Global Geopolitics & Political Economy / IPS

AJ Correspondents

DOHA, Qatar, Mar 27 (Al Jazeera) – Cyprus is finalising capital control measures to prevent a run on the banks by depositors anxious about their savings after the country agreed a painful rescue package with international lenders.With banks due to reopen on Thursday, Finance Minister Michael Sarris said he expected the control measures to be ready by noon (1000 GMT) on Wednesday.

"I think they will be within the realms of reason," Sarris said in a Cyprus television interview, without going into details.

Cypriots have taken to the streets of Nicosia in their thousands to protest against the bailout deal they fear will push their country into an economic slump and cost many their jobs.

European leaders said the deal averted a chaotic national bankruptcy that might have forced Cyprus out of the euro.

A banking official said on Wednesday that new controls will include restrictions on large-scale transfers from Bank of Cyprus and Laiki, two of the country’s largest and troubled lenders, which are both being restructured.

Authorities are looking to increase the daily withdrawal limit from 100 euros to 300 euros, for at least a week until the situation stabilises, according to the official who spoke to AP news agency.

Banks will have heightened security across the island nation for the "comfort of both bank staff and clients, with the police also present", according to John Argyrou, the Cyprus managing director of private security firm G4S, which will deploy 180 of its staff to all bank branches.

"There may be some isolated incidents, but it’s in our culture to be civil and patient, so I don’t expect anything serious," said Argyrou.

Run on banks

"Banks will open on Thursday … We will look at the best way to limit the possibility of large sums of money leaving, and not imposing punitive conditions on the economy, businesses and individuals," Sarris said in the interview.

The central bank governor said earlier that "loose" controls would apply temporarily to all banks.

Earlier, the finance minister said they could be in place for weeks. Banks have been shut since final bailout talks got under way in mid-March.

Russia, whose citizens have billions of euros in Cypriot banks, cautioned Nicosia against imposing onerous controls on healthy banks.

"If there are such measures, this will not foster trust but only provoke additional problems for participants, depositors," Russian Finance Minister Anton Siluanov, in South Africa for a summit of the BRICS emerging powers group, told reporters late on Tuesday.

State-controlled Russian bank VTB has a subsidiary in Cyprus, Russian Commercial Bank, which has not been affected by the bailout deal.

Siluanov cautioned that Russian willingness to restructure and extend a 2.5-billion euro loan to Cyprus in 2011 would depend on the island’s decision on capital controls.

"We will discuss (restructuring of the loan) in the context of the decisions the parliament adopts," he said. "We are prepared to discuss within these parameters."

Bank executive sacked

Meanwhile, the chief executive of the Bank of Cyprus, the island’s biggest lender, was sacked by the central bank governor as part of the bailout deal, state media said.

Yiannis Kypri was fired on the instructions of the so-called troika of the European Union, European Central Bank and International Monetary Fund, the Cyprus News Agency reported.

The terms of the 10-billion euro (13-billion-dollar) rescue have stirred popular anger within Cyprus at the country’s partners in the EU, notably Germany, the bloc’s main paymaster and fiercest advocate of austerity.

On Tuesday, up to 3,000 high school students protested at parliament, in the first major expression of popular anger since the bailout was agreed in the early hours of Monday morning in Brussels.

The deal largely side-stepped parliament, and has triggered opposition calls for a referendum.

"They’ve just got rid of all our dreams," one student, named Thomas, said.

Outside the central bank, about 200 employees of the country’s biggest commercial lender, the Bank of Cyprus, demanded the resignation of central bank governor Panicos Demetriades, chanting "Hands off Cyprus" and "Disgrace".

*Published under an agreement with Al Jazeera.

All rights reserved, IPS – Inter Press Service, 2013.

This article may not be republished, broadcast, framed, or redistributed without the written permission of IPS – Inter Press Service. Republication of this material without permission from IPS, the copyright holder, constitutes a violation of United States and international copyright laws and may result in legal action.


Filed Under: Economic Crisis, Europe, Finance, Lead Tagged With: , , ,

Nuclear Safety Plan Has Ukrainians Worried

March 27, 2013 by

Global Geopolitics & Political Economy / IPS

Pavol Stracansky

KIEV, Mar 27 (IPS) – A 300 million euro loan to improve nuclear safety in the Ukraine has been attacked by environmental groups who say it will instead be used to keep ageing reactors working well beyond their planned lifespans – increasing the risks of a nuclear accident – while doing nothing to address serious issues with the country’s energy intensity.The European Bank for Reconstruction and Development (EBRD), which approved the loan earlier this month, has said that the money will be used to upgrade safety at nuclear plants to international standards.

But environmentalists say it will instead be used by state energy company Energoatom to keep open or restart ageing reactors and that the EBRD should be helping the Ukraine move away from nuclear power and support renewable energy projects.

Iryna Holovko of the pan-European Bankwatch NGO, which together with other environmental groups has opposed the loan, told IPS: “Energoatom and the Ukrainian government is imposing another 20 years of additional nuclear risk – because of the increased risks associated with ageing of reactors – on the people of Ukraine without developing or offering an alternative option.”

Nuclear power is key to Ukraine’s energy production. Fifteen plants around the country provide almost half of its electricity.

But while many countries in Europe have recently reaffirmed their opposition to nuclear power or abandoned or scaled back their reliance on it in the wake of the Fukushima disaster, Ukraine’s energy policy has been amended in the last two years to include new nuclear capacity and the extension of the lifespans of existing plants by, in some cases, 20 years.

Environmental groups in the Ukraine point to an accident at the Rivne nuclear power plant’s Reactor 1. Its original lifespan had expired at the end of 2010 but it was given an extension for 20 years. One month later there was an accident, although no radiation leaked.

The funding provided by the EBRD, together with a further European Commission loan under the Euratom Treaty, will support a programme including more than 80 measures addressing safety issues at plants, such as replacing equipment and improving accident management.

Environmental groups claim that Energoatom has not properly analysed the risks and safety issues related to the safe operation of nuclear units for decades beyond their original lifespans.

In particular, they argue, a reactor at the South Ukrainian nuclear power plant will be restarted again using the financing approved by the EBRD. The reactor’s lifespan has expired and it is no longer generating electricity. But Energoatom has been told its lifespan can be extended and the reactor restarted if it carries out safety upgrades.

Holovko told IPS: “It is one thing to improve the safety of nuclear reactors that still have some years of their original operating time left, but it is not OK to finance measures at facilities whose lifespans have expired and which have already stopped working and at the same time saying the loan has nothing to do with lifespan extension.”

Greenpeace and other groups such as the German NGO Urgewald have said that the EBRD, as one of the largest investors in the Ukraine and other European countries, should be spending money on decommissioning old nuclear reactors and supporting renewable energy instead.

Jutta Matysek of Greenpeace Central and Eastern Europe said: “European public money should be used to support renewable energy to help Ukraine overcome its dependence on nuclear energy and imported carbon fuel. A country which is still suffering from the terrible effects of the Chernobyl disaster will not survive another nuclear catastrophe.”

The EBRD has vigorously defended the financing. The bank says its energy policy is geared towards improving energy efficiency, but that it has a clear mandate to financing nuclear safety improvements at an operating facility.

In a statement following approval of the loan, the bank said: “Nuclear safety is a consideration of the utmost priority at any time regardless of whether a unit has just been connected to the grid or has been producing electricity for decades.”

Stressing that the bank has no mandate to force a sovereign state to rule out the use of any source of energy, it added: “Ukraine is currently reviewing its own energy strategy but has made it clear that it will continue to use nuclear power generation. Consequently, addressing the safety issues and raising standards is the EBRD’s primary concern and its due role.”

It also emphasised that Energoatom’s safety upgrade plan had taken into account recommendations from the International Atomic Energy Agency and Ukrainian and international experts.

EBRD representatives in the Ukraine who spoke to IPS stressed that the bank has invested more than 200 million euros in renewable energy projects in Ukraine to date. It has also lent tens of millions of euros to local municipalities for energy efficiency projects.

EBRD Ukraine representative Anton Usov told IPS: “The EBRD should get more recognition for its efforts to make Ukraine more energy efficient and for the renewable energy projects we have implemented in this country – something which no other institution has done.”

Environmental groups say sensitivity to nuclear safety remains particularly high because of the 1986 Chernobyl disaster.

A nationwide poll carried out in April 2011 showed that 39 percent of respondents believed Ukrainian plants were “quite dangerous” and that 25 percent said they were “extremely dangerous”. More than 69 percent said they were completely opposed to the construction of new nuclear power plants.

But Usov said that there was no widespread opposition to extending the lifespans of ageing reactors, and that the public accepted that nuclear power was essential to meeting the country’s energy needs.

He told IPS: “People in Ukraine are generally sensitive to nuclear industry-related subjects for obvious reasons….There is a broad understanding in society that the country cannot survive without nuclear power plants, at least in the short-term.”

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This article may not be republished, broadcast, framed, or redistributed without the written permission of IPS – Inter Press Service. Republication of this material without permission from IPS, the copyright holder, constitutes a violation of United States and international copyright laws and may result in legal action.


Filed Under: Energy, Environment, Europe, Health, Report Tagged With: , ,

Spain Leads the EU in GM Crops, but No One Knows Where They Are

March 27, 2013 by

Global Geopolitics & Political Economy / IPS

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Genetically modified corn in Spain. Credit: Friends of the Earth

Inés Benítez

MÁLAGA, Spain, Mar 27 (IPS) – Spain has more large-scale plantations of genetically modified seeds than any other country in the European Union (EU).Based on the number of trials conducted and the area of land planted, Spain accounts for 42 percent of all field trials of genetically modified crops in the EU, according to figures from the European Commission Joint Research Centre.

“Experimentation is being carried out on a wide scale with no knowledge of its consequences for human health, the environment and the future of agriculture,” environmentalist Liliane Spendeler, director of Friends of the Earth Spain, told Tierramérica*.

Her organisation has launched a campaign, “Únicos en Europa”, to inform the public about these crops.

Genetically modified organisms or GMOs, also known as transgenic organisms, are the result of a laboratory process of taking genes from one species of plant or animal and inserting them into another species in an attempt to obtain a desired trait or characteristic, such as resistance to pests or adverse weather conditions like drought.

There is no conclusive evidence that GMOs are harmless to human health and the environment, which has led the World Health Organization to recommend that they be studied on a case-by-case basis.

In 2012, more than 116,300 hectares of land in Spain were planted with MON810 corn, produced by the U.S.-based biotech transnational Monsanto. This was 20 percent more than in 2011, according to figures from the Ministry of Agriculture, Food and Environment calculated on the basis of seed sales.

Environmentalists are critical of the fact that these figures are imprecise estimates, and that there is no public registry specifying the location of these transgenic corn fields.

When certified organic crops are contaminated by genetically modified crops, the farmers lose their organic certification, but cannot sue the owners of the transgenic crops because of the lack of a registry. They cannot demand compensation for losses and damages, either, because there is no provision for this in Spanish or European legislation, explained Spendeler.

In Spain, as in the rest of the EU, only transgenic corn is authorised. Genetically modified soy and cotton are imported from Argentina, Brazil, Canada and the United States.

“Transgenic crops produced in developing countries are filling the bellies of cows and pigs in industrialised countries,” Luís Ferreirim, the head of Greenpeace Spain’s anti-GMO campaign, told Tierramérica.

According to a report from the International Service for the Acquisition of Agri-biotech Applications (ISAAA), published Feb. 20, “From 1996 to 2011, biotech crops contributed to food security, sustainability and climate change” (sic).

A record 170.3 million hectares of transgenic crops were grown globally in 2012, up six percent from 2011, the ISAAA reports. The United States is the biggest producer, followed by Brazil.

But despite the benefits touted by their promoters, such as increased productivity and efficiency and decreased pesticide use, genetically modified seeds have been banned by a significant number of European countries, noted Ferreirim.

In Europe there are 11 countries that prohibit the use of genetically modified seeds, eight of them in the EU, following the addition of Poland in 2013. And in 2012, only Portugal, Spain, Romania, Slovakia and the Czech Republic planted transgenic crops, he added.

A whopping 95 percent of these crops in the EU are concentrated in Spain (88 percent) and Portugal (seven percent).

The bulk of this transgenic corn is used to produce animal feed. “Given that the food pyramid has been turned upside down and there is an ever greater demand for animal protein, it ends up right on our plates,” said Ferreirim.

European legislation requires that food products be labelled if they contain GMOs, unless these account for 0.9 percent or less of the total ingredients.

The animal feed sold in Spain is a mixture of transgenic and conventional corn, which represents a serious violation of cattle farmers’ right to choose non-GMO feed for their livestock, said Spendeler.

Environmental activist Carmela San Segundo, a member of Ecologists in Action in the southern Spanish city of Málaga, stressed the “great power” wielded by the agrochemical corporations that sell genetically modified seeds.

Through the efforts of the non-governmental organisation she works with, a dozen towns in the province of Málaga have declared themselves Transgenic-Free Zones, a legal status recognised by the EU.

“It takes a lot of work, talking with community associations, farmers’ associations, members of local governments. It’s not a problem that people worry about much, because they know very little about it,” she told Tierramérica.

In Spain, the planting of transgenic corn began in 1998 as a means of confronting the economic consequences of insect invasions, according to the Ministry of Agriculture.

But today there are no figures on the real incidence of the European corn borer, the crop’s main insect enemy.

“Can the use of this technology be justified without concrete figures on the losses caused by pests?” asked Ferreirim.

He explained that Monsanto’s genetically modified Bt corn does away with the need to use pesticides because its flowers produce a bacterium that is toxic to these insects.

But even though there is not always a threat of insect infestation, the corn constantly releases this gene, and after harvesting, it remains in the soil, decreasing its fertility, Ferreirim said.

“It has been shown in transgenic crops in various countries that over the long term, secondary pests appear, leading to the need to use other pesticides,” he added.

In addition, GMO field trials are not subjected to any safety controls in Spain, Ferreirem stressed.

According to a survey published in 2010 by the EU, 53 percent of Spaniards were against the splicing of genes from other species into food crops, while only 27 percent were in favour.

* This story was originally published by Latin American newspapers that are part of the Tierramérica network.

All rights reserved, IPS – Inter Press Service, 2013.

This article may not be republished, broadcast, framed, or redistributed without the written permission of IPS – Inter Press Service. Republication of this material without permission from IPS, the copyright holder, constitutes a violation of United States and international copyright laws and may result in legal action.


Filed Under: Agriculture, Environment, Europe, Health, Report Tagged With: ,

As Cyprus Collapses, It’s a Race to the Mediterranean Gas Finish Line

March 27, 2013 by

By. Jen Alic of Oilprice.com

Cyprus is preparing for total financial collapse as the European Central Bank turns its back on the island after its parliament rejected a scheme to make Cypriot citizens pay a levy on savings deposits in return for a share in potential gas futures to fund a bailout.

On Wednesday, the Greek-Cypriot government voted against asking its citizens to bank on the future of gas exports by paying a 3-15% levy on bank deposits in return for a stake in potential gas sales. The scheme would have partly funded a $13 billion EU bailout.

It would have been a major gamble that had Cypriots asking how much gas the island actually has and whether it will prove commercially viable any time soon.

In the end, not even the parliament was willing to take the gamble, forcing Cypriots to look elsewhere for cash, hitting up Russia in desperate talks this week, but to no avail.

The bank deposit levy would not have gone down well in Russia, whose citizens use Cypriot banks to store their “offshore” cash. Some of the largest accounts belong to Russians and other foreigners, and the levy scheme would have targeted accounts with over 20,000 euros. So it made sense that Cyprus would then turn to Russia for help, but so far Moscow hasn’t put any concrete offers on the table.

Plan A (the levy scheme) has been rejected. Plan B (Russia) has been ineffective. Plan C has yet to reveal itself. And without a Plan C, the banks can’t reopen. The minute they open their doors there will be a withdrawal rush that will force their collapse.

In the meantime, cashing in on the island’s major gas potential is more urgent than ever—but these are still very early days.

In the end, it’s all about gas and the race to the finish line to develop massive Mediterranean discoveries. Cyprus has found itself right in the middle of this geopolitical game in which its gas potential is a tool in a showdown between Russia and the European Union.

The EU favored the Cypriot bank deposit levy but it would have hit at the massive accounts of Russian oligarchs. Without the promise of Levant Basin gas, the EU wouldn’t have had the bravado for such a move because Russia holds too much power over Europe’s gas supply.

Cypriot Gas Potential

The Greek Cypriot government believes it is sitting on an amazing 60 trillion cubic feet of gas, but these are early days—these aren’t proven reserves and commercial viability could be years away. In the best-case scenario, production could feasibly begin in five years.

Exports are even further afield, with some analysts suggesting 2020 as a start date.

In 2011, the first (and only) gas was discovered offshore Cyprus, in Block 12, which is licensed to Houston-based Noble Energy Inc. (NBL). The block holds an estimated 8 trillion cubic feet of gas.

To date, the Greek Cypriots have awarded licenses for six offshore exploration blocks that could contain up to 40 trillion cubic feet of gas. Aside from Noble, these licenses have gone to Total SA of France and a joint venture between Eni SpA (ENI) of Italy and Korea Gas Corp.

But the process of exploring, developing, extracting, processing and getting gas to market is a long one. Getting the gas extracted offshore and then pumped onshore could take at least five years and some very expensive infrastructure that does not presently exist. The gas would have to be liquefied so it could be transported by seaborne tankers.

The potential is there: Cyprus’ gas discoveries adjoin Israeli territorial waters where the discovery of the massive Leviathan gasfield (425 billion cubic meters or 16 trillion cubic feet) and smaller Tamar gasfield (250 billion cubic meters or 9 trillion cubic feet) have foreign companies in a rush to cash in on this.

There are myriad problems to extracting Cypriot gas—not the least of which is the fact that some of this offshore exploration territory is disputed by Turkey, which has controlled part of the island since 1974.

Gas exploration has taken this dispute to a new level, with Turkey sending in warships to halt drilling in 2011, and threatening to bar foreign companies exploring in Cyprus from any license opportunities in Turkey. The situation is likely to intensify as Noble prepares to begin exploratory drilling later this year in Block 12.

In the meantime, there is no shortage of competition on this arena. Cyprus will have to vie with Israel, Lebanon and Syria—all of which have made offshore gas discoveries of late in the Mediterranean’s Levant Basin, which has an estimated total of 122 trillion cubic feet of gas and 1.7 billion barrels of oil.

Blackmailing Cyprus?

While Greek Cypriot citizens are not willing to gamble away their savings on gas futures, Russia and the European Union are certainly less hesitant.

This is both a negotiating point for Cyprus and a convenient tool of blackmail for Russia and the EU. Essentially, the bailout is the prop on a stage that will determine who gets control of these assets.

Theoretically, Cyprus could guarantee Russia exploration rights in return for assistance. As much as this is possible, the EU could ease its bailout negotiations if it becomes clear that a Russian bailout of sorts is imminent.

Gas finds in the Mediterranean and particularly across the Levant Basin—home to Israel’s Leviathan and Tamar fields—could be the answer to Russian gas hegemony in Europe. The question is: How much does Cyprus count in this equation? A lot.

Though only half of the estimated resources in the Levant Basin, Cyprus’ potential 60 trillion cubic feet of gas could equal 40% of the EU’s gas supplies and be worth a whopping $400 billion if commercial viability is proven.

Russia is keen to keep Cyprus and Israel from cooperating too much toward the goal of loosening Russia’s grip on Europe before Moscow manages to gain a greater share of the Asian market.

Russia is also not keen on Israel’s plan to lay an undersea natural gas pipeline to Turkey’s south coast to sell its gas from the Leviathan field to Europe. Turkey hasn’t agreed to this deal yet, but it is certainly considering it. This is fraught with all kinds of political problems at home, so for now Ankara is keeping it as low profile as possible.

With all of this in mind, Russia is doing its best to get in on the Levant largesse itself. While it’s also courting Lebanon and Syria, dating Israel is already in full force. Gazprom has signed a deal with Israel that would give it control of Tamar’s gas and access to the Asian market for its liquefied natural gas (LNG). Tamar will probably begin producing already in April at a 1 billion cubic feet/day capacity.

In accordance with this deal, which Israel has yet to approve, Gazprom will provide financial support for the development of the Tamar Floating LNG Project. In return, Gazprom will get exclusive rights to purchase and export Tamar LNG. It is also significant because Tamar is a US-Israeli joint venture—so essentially the plan is to help Russia diversify from the European market.

What does this mean for Cyprus? The chess pieces are still being put on the board, and both fortunately and unfortunately, Cyprus’ gas potential will be intricately linked to its bailout potential.

Source: http://oilprice.com/Energy/Natural-Gas/Cypriot-Bailout-Linked-to-Gas-Potential.html

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Tenants in Spain Win First Battle against Evictions

February 17, 2013 by

Global Geopolitics & Political Economy / IPS

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The ILP calls for “payment in kind", meaning that a person’s debts are written off once they have surrendered their home. Credit: Inés Benítez

Inés Benítez

MALAGA, Spain, Feb 15 (IPS) – Public outcry against evictions this week led Spain’s parliament to accept a popular initiative against mortgage-related evictions for unpaid debts, which in the past seven days have led to four suicides."The banks chase me to pay every cent," while they are rescued with public money, complained Benigno, a 47-year old unemployed man, who with his three children has for nearly a year occupied one of 29 vacant apartments in a building project in the southern city of Malaga, which closed down when the developer went bankrupt.

Benigno has had two houses foreclosed on. He spent three years working for a company with an open-ended contract when he decided to take out a loan to buy a bigger second home, offering the first as collateral.

"Everybody did it (bought property)," he told IPS. "But overnight I was fired. I’ve lost everything and I owe 102,000 euros (135,000 dollars), payable in 28 years."

The Popular Legislative Initiative (ILP), promoted by the citizen movement Plataforma de Afectados por la Hipoteca (PAH) (Platform for those Affected by Mortgage), is backed by nearly a million-and-a-half signatures.

It calls for “payment in kind,” meaning that a person’s debts are written off once they have surrendered their home, and wants this to apply retroactively. It also wants a moratorium on evictions, and the creation of social housing with homes confiscated by banks.

"We are the European country with the most evictions, and at the same time the one with the largest millions of accumulated empty homes," PAH spokesman, Ada Colau, said in a televised interview earlier this month.

Between 2007 and the third quarter of 2012, there were 400,000 foreclosures in Spain, according to data from the General Council of the Judiciary.

"I heard that there were empty houses and I came. I had no other choice. I could not pay rent," said Antonio, a 22-year-old living with his wife Encarni, 19, and their two-year-old daughter. The little he earns as a street vendor, he spends on food.

"I have no electricity and water, but at least I don’t have my daughter on the street," said Antonio, who is a neighbor of Benigno and 20 other families, who make up for the lack of electricity with candles and generators, and fill containers with drinking water from nearby pumps.

The debate over the ILP, which given the social pressure was accepted "in extremis" by the ruling right-wing Popular Party (PP) with a parliamentary majority, "is a first step", said Antonio Alarcón, a core activist of the Malaga PAH, which in four years has stopped more than 500 evictions. It negotiates payments in kind and relocates families into affordable rental schemes.

It remains to be seen whether the measures proposed in the ILP will be incorporated unchanged into a bill on the same subject which is already passing through the parliament.

If by law the banks apply payment in kind retroactively, many people who have lost their homes would avoid facing lifelong debts. "They will save me from a 28-year trap,” said Benigno.

Some in economic circles oppose payment in kind, arguing it will make credit more expensive and hurt the financial system.

"But the fact is that today there is no credit for anyone and the financial system is already broken," Sara Vásquez, an attorney for the PAH in Malaga, told IPS.

For Vásquez, the admission of the ILP project was the result of "arm-twisting " and “marks a milestone in this country". It shows that "the only way out is pressure" by of citizens, who increasingly feel less represented by institutions, and are outraged by the corruption charges shaking the PP and members of the royal family.

"They receive envelopes with money and we receive envelopes with bills," said Azahara, another resident of the occupied building, referring to the alleged illegal payments to members of the PP, as reported by the national newspaper El País.

In the past four months there have been seven suicides of people who were to be evicted, including four in just the last seven days. On Feb. 13, the judicial commission that was to carry out the eviction of a man found him hanging at his home in the southeastern city of Alicante.

Unemployment is now affecting a whopping 26.2 percent of the workforce in Spain, even as there are drastic cuts in key areas such as health and education.

"(The government) is not rescuing people, but the banks," said Alarcon, referring to public money allocated to clean up the financial institutions and the creation of a so-called "bad bank", a manager of unpaid property loans or unsold homes that the banks took from bankrupt construction companies to whom they had lent money.

During the housing boom, "everything in this country was pushing you to buy a home instead of renting… and the banks themselves drafted the mortgage contracts," Colau recalled in the interview.

The PAH has called for demonstrations this Saturday "for the right to housing and against financial genocide".

The Court of Justice of the European Union declared last November that the Spanish foreclosure system is incompatible with the laws of the EU bloc.

In a preliminary ruling, which will serve as a basis for judgment, the court granted national judges the power to suspend evictions until the terms of credit have been reviewed to see whether or not they are abusive.

The debtors come to the PAH with "complete ignorance" about their situation: they don’t know how to negotiate with the bank or how their lawyer can help them, said Alarcon, who criticised the lack of training of lawyers in charge of defending the interests of those affected.

"None of us live here today because we want to," said Benigno. With the help of the PAH, they want to negotiate with the owner and continue to stay in the building, in exchange for its maintenance, for which each of them provides 20 euros per month, according to a list attached to an elevator that never functioned.

All rights reserved, IPS – Inter Press Service, 2013.

This article may not be republished, broadcast, framed, or redistributed without the written permission of IPS – Inter Press Service. Republication of this material without permission from IPS, the copyright holder, constitutes a violation of United States and international copyright laws and may result in legal action.


Filed Under: Economic Crisis, Europe, Human Rights, Lead, Social Justice Tagged With: , , ,

Finland Should Spur Global Development

February 17, 2013 by

Global Geopolitics & Political Economy / IDN

By Outi Hakkarainen* | IDN-InDepth NewsViewpoint

HELSINKI (IDN) – Finland is a North European nation with its own socioeconomic challenges, but globally it belongs to well-off countries responsible for engaging in the global development agenda. The Finnish government wants to be an accountable member of the international community, but its political will to be so does not always materialise.

Finland has not, for example, been able to reach the 0.7 % target for its development funding. On the other hand Finland’s current Development Policy Programme is positively founded on a rights-based approach. The challenge for Finnish civil society is to compel the government to improve its international performance.

Progress has been made towards the Millennium Development Goals (MDGs) and development would most certainly have been slower without them. However, several shortcomings have been recognised, for example, the absence of certain important themes, too modest objectives, narrow definition of poverty instead of focusing on the inequality gap, restricted attention on employment issues, limited perspectives on environmental and human rights, loose formulation of the goal of global partnership, and change towards a more equitable world pursued through a very limited toolbox, that is, development cooperation.

In addition, the MDGs have not met the standards of existing international commitments. The target of halving the number of people living in poverty, for example, was less ambitious than the one agreed at the 1996 UN World Food Conference in Rome. Other deficiencies have been a closed and donor-led formulation process, the impossibility to reduce broad structural problems into eight goals, the inability to take into account the special needs of fragile states, and the lack of formulating parallel goals for rich countries.

Emerging actors

The world has changed since the Millennium Declaration and the geography of poverty has undergone a fundamental transformation. The fact that majority of people living on less than 1.25 US dollars a day live in middle-income countries need to influence the selection of tools to eradicate poverty after 2015.

Development co-operation will continue to play an important role in the poorest countries but strong commitment from the BRICS countries (Brazil, Russia, India, China and South Africa) and other emerging economies is also required. It is essential to ask how to make their national development sustainable and to ensure that emerging business activities benefit the entire society. These countries are themselves responsible for their own development but international co-operation may help them. For example, support for democratization can be crucial as it usually correlates with fairer income distribution.

Another dilemma is their involvement in Africa where especially China, India and Brazil are creating South-South partnerships, asking for diplomatic support, and searching for resources and markets. The trade between the emerging actors and Africa has more than quadrupled from 2000 to 2009 and a similar growth surge is happening in investments and aid. Their share is still relatively moderate (e.g. 20% of the Africa’s foreign trade) but the reason why these actors have caused such a stir is the rapid and continuing rise of their engagement and negative influence they are commonly thought to have in the African societies by breaking deals with political elites with little attention paid to democracy, good governance, transparency, accountability or civil society participation, and their eagerness to exploit oil, land and other natural resources in the African continent.

However, despite the drawbacks for example of China’s presence, its activities are often seen in Africa as more positive than Europe’s long involvement in their continent. For example the research on China, southern Africa and extractive industries argues that there can be a ‘win-win partnership’ if southern African governments’ policies are based on achieving long-term socio-economic and development goals.

In the case of the extractive industry this kind of impact could mean effective mining public administration, competencies to run extractive industries, appropriate tax regimes, functional linkages between the extractive industries and local economies and social responsibility demands for Chinese companies. Finland and other donor countries should support the African governments in achieving these objectives and such cooperation with any foreign actor which do not hinder the development of the African societies.

Loaning, trade and tax collection

The turn of the millennium was characterised by debates about the debt problems of developing countries, the loan terms and conditions used by development finance institutions and the unfair rules of international trade. Nevertheless, progress has remained modest. International trade rules still fail to support the reduction of global poverty and effective long-term solutions to the debt problems of developing countries have not been found, despite promises.

The new global framework should be equipped with incentives for sustainable lending policies and for trade policies supportive of developing countries. It is especially crucial to ensure coherence between these goals and the politics of international trade, investments and taxes. In the investment politics it is essential to take into consideration the special needs of the poorest countries and to create explicit and binding rules for the private sector as in addition to the state as it has lot of influence on developing countries and ecological carrying capacity of our planet.

The significance of taxation to financing developing countries is being gradually understood in the international community. Research has revealed a strong correlation between successful tax collection and human development. States dependent on tax revenue fare usually better when measured by good governance and democracy when compared with developing countries living on revenue from oil, for example. The terms and conditions of loans granted by the International Monetary Fund (IMF) and the World Bank have contributed to bringing about a situation where developing countries have been forced to shift the focus of taxation towards consumption taxes in recent decades, as customs revenue has plummeted as a result of trade liberalisation.

People have also come to realise that curbing tax evasion practised by major companies plays a key role as developing countries try to get rid of their dependence on aid. The revenue lost by developing countries due to tax evasion by major companies may even exceed the amounts they gain in the form of development assistance many times over. Taxation of foreign companies is also a key issue for middle-income countries. The taxes payable by companies bring needed revenue to the efforts of these states and enabling them to carry out their own development plans. The sustainability and fairness of tax systems should be included as part of the new development agenda. Internationally, it is crucial to control the tax havens and uproot tax avoidance, and to develop tax administration nationally and enhance the decrease of aid dependency.

Challenging the growth imperative

The development discourse is still mainly based on economic growth, but critical voices and alternative visions are rising up in different corners of the world. Approaches of ‘buen vivir’ (living well) and the solidarity economy have, for example, emerged especially in Latin America while commons-thinking and de-growth discourse are widening largely in the global North. These all challenge the growth paradigm and enhance people-centred economics.

The concept of the green economy is another story as it has been adopted so widely that its definitions are even contradictory. In the very best-case scenario, it may promote fair and just trade relations, help developing countries to skip the fossil fuel industry stage and raise the prices of dwindling natural resources to match their real value but in practice the use of the concept has widely caused suspicion.

Some developing countries have expressed fears that more stringent environmental standards may exclude high-emission products from Western markets or may open a door to making aid and debt relief conditional. Quite different concerns rise from the people’s movements, which are not able to see how the label of the green economy makes a difference to current unsustainable economic practices, and estimate the concept primarily as a tool for “green-washing”. These different approaches need to be recognized when formulating the new global development agenda and the social movements’ voices based on local experiences to be carefully listened.

The debate on economic growth is also linked to the criticism on the gross domestic product (GDP) as an adequate indicator. Complementary instruments include the Human Development Index (HDI) and the Genuine Progress Indicator (GPI) that notice human and environmental well-being more broadly. Indicators such as the ecological footprint draw attention to consumption habits. For the new global development agenda, it is imperative to ensure that the benefits of different indicators can be used instead of making them compete against each other.

Towards another world

Despite the enormous problems and injustices we currently face in the world, we should continue to believe that another world is possible. We can reduce poverty and boost social development either by burdening or preserving the environment. The key question is how to get future goals to acknowledge the structures of impoverishment.

In the light of current knowledge, it is possible to provide the poorest part of the world’s population with adequate food, energy and subsistence in a sustainable manner. For instance, bringing electricity to the almost one fifth of the world’s population currently without it could be achieved with less than a 1% increase in global CO2 emissions. Providing the additional calories needed by the world’s population facing hunger would require just 1% of the current global food supply.

Furthermore, we can combat inequality in its multiple manifestations. Child benefits, pension schemes, health care accessible to everyone and other instruments of comprehensive social policy have been the cornerstones of poverty reduction for decades in rich countries, in particular in Finland and in the other Nordic countries. However, it has taken a long time for comprehensive social policy to break through onto the development agenda.

It is important that Finland will continue working on the themes which have successfully been at the core of its agenda, such as gender equality and education, but as underlined at the beginning, it is time for Finland to make a bigger difference.

In the context of new development agenda Finland should contribute to ensuring that the agenda is prepared in a fair, equitable and inclusive manner. Responsibility for the goal-setting process should rest with the UN and its member states as the UN is the only body with broad enough representation and acceptance for this purpose. Planning should be co-ordinated between states, local governments and civil society, and here the dilemma of enabling environment for civil societies needs to be acknowledged.

Other dilemmas are policy coherence between policy sectors and securing the resources for implementing the new development agenda. The old promise of 0.7 % target of development financing must be kept and in addition new sources of financing are needed. Besides more resources these sources may contribute to reducing carbon emissions, such as a global tax on airline tickets.

The most important challenge for Finland and the entire international community is to fight against inequality. Global inequality has increased during recent decades so hugely that both extreme poverty and extreme levels of wealth hinder egalitarian and stable development of the world. In order to diminish inequality we need to address both poverty and wealth in their structural terms.

*Outi Hakkarainen is development policy expert at Kepa, a platform of Finnish NGOs interested in development issues. This article is an abridged version of ‘Finland: New global development agenda should shake the structures of impoverishment’, published on Social Watch website. [IDN-InDepthNews – February 15, 2013]

2013 IDN-InDepthNews | Analysis That Matters

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Filed Under: Development, Europe, Report Tagged With: ,

Bulgarian Charge of Hezbollah Bombing Was an “Assumption”

February 7, 2013 by

Global Geopolitics & Political Economy / IPS

Gareth Porter

LONDON, Feb 07 (IPS) – Bulgarian Interior Minister Tsvetan Tsvetanov’s dramatic announcement Tuesday on the Bulgarian investigation of the July 2012 terror bombing of an Israeli tourist bus was initially reported by Western news media as suggesting clear evidence of Hezbollah’s responsibility for the killings.But more accurate reports on the minister’s statement and the only details he provided reveal that the alleged link between the bomb suspects and Hezbollah was merely an “assumption” rather than a conclusion based on specific evidence.

Tsvetanov was quoted by various Western news outlets as saying, “We have established that the two were members of the militant wing of Hezbollah.” The minister also said, "There is data showing the financing and connection between Hezbollah and the two suspects,” according to the BBC and Jerusalem Post.

Those statements implied that the Bulgarian investigators had uncovered direct evidence of Hezbollah’s involvement in the Burgas bombing.

But the New York Times on Wednesday quoted Tsvetanov as saying, in remarks to a session of Bulgaria’s Consultative Council on National Security Tuesday, “A reasonable assumption, I repeat a reasonable assumption, can be made that the two of them were members of the militant wing of Hezbollah.”

That statement appeared to acknowledge that he was merely speculating on the basis of data that doesn’t necessarily support that conclusion.

In a report on Wednesday by Sofia News Agency, Bulgaria’s largest English-language news provider, Tsvetanov was quoted as saying that the investigation had led to a “well-founded assumption” that two of the perpetrators of the deadly attack belonged to what the Bulgarian government is calling the “militant wing of Hezbollah”.

In an interview with Bulgarian National Radio Wednesday, the Bulgarian chief prosecutor, Sotir Tsatsarov, emphasised that the investigation of the Burgas bus bombing had not been concluded and expressed concern about the term “well-founded assumption".

The chief prosecutor implied that Tsvetanov’s conclusion about Hezbollah might have been swayed by political pressures. Tsatsarov said that the prosecutor’s office “could not be used to make political decisions or to justify them”, according to Sofia News Agency.

In a television interview for the morning broadcast of Bulgarian National Television, Bulgarian Foreign Minister Nikolay Mladenov defended Tsvetanov’s use of the phrase “well-founded assumption”. Mladenov explained that it meant that Bulgaria had “good reason” to believe that the attack had been organised and inspired by members of the militant branch of Hezbollah at this stage of the investigation, Sofia News Agency reported.

But Mladenov did not claim that any of those “good reasons” consisted of hard evidence.

In an interview with Associated Press Tuesday, Europol Director Rob Wainright said, “The Bulgarian authorities are making quite a strong assumption that this is the work of Hezbollah."

But Wainright also cited only the most general arguments in support of Tsvetanov’s “assumption”, declaring, “From what I’ve seen of the case – from the very strong, obvious links to Lebanon, from the modus operandi of the terrorist attack and from other intelligence that we see – I think that is a reasonable assumption.”

Europol had sent several investigators to help the Bulgarian authorities on the Burgas bombing investigation, Wainwright told Associated Press.

None of the details provided by Tsvetanov, according to press reports, involved evidence showing that two of the alleged conspirators belonged to Hezbollah or to Hezbollah financing of the terror plot.

The most important piece of evidence cited by Tsvetanov was the lengthy stays in Lebanon by two of the three alleged participants in the bombing and driver’s licenses that were forged in Lebanon.

Tsvetanov said the two alleged conspirators with Canadian and Australian passports who are believed to have helped the third member of the cell carry out the Burgas bombing lived in Lebanon between 2006 and 2010.

He also indicated that two of driver’s licenses used by the conspirators were “forged in Lebanon”, and that Bulgaria was able to piece together the movements of two of the suspects from Lebanon to Europe.

Those connections between the alleged conspirators and the bombing by themselves could hardly support an assumption of Hezbollah responsibility for the bombing. Al-Qaeda terrorist cells have been operating in Lebanon for years, and have the technical capability for such a bombing plot.

Members of one Al-Qaeda network of 13 men organised in different cells arrested in 2006 and 2007 confessed to having planned and carried out the 2005 assassination of Lebanese Prime Minister Rafik Hariri, although they retracted their confessions before trial.

Furthermore, Al-Qaeda has claimed responsibility for a series of terrorist bombings involving Israeli tourists in the past, whereas there is no known case of a Hezbollah bombing of Israeli tourists, as a Hezbollah spokesman pointed out Wednesday.

In November 2002, Al-Qaeda carried out a terrorist attack on Israeli tourists in Mombasa, Kenya in November 2002 that involved an attempted shoot-down of an Israeli passenger aircraft and a triple suicide car bombing of an Israeli-owned hotel.

Two years later, an Al-Qaeda affiliate took responsibility for bombings at three Red Sea resorts, killing 34 Israeli tourists. And in July 2005, the same Al-Qaeda-related organisation took responsibility for suicide bomb attacks that killed at least 88 people at a shopping area and hotel packed with tourists, including Israelis, in the Egyptian Red Sea resort city of Sharm el Sheik.

Nevertheless, Tsvetanov offered no other specific evidence to support his conclusion.

Another aspect of the Bulgarian investigation suggesting that information about the alleged participants is still very limited is the fact, reported by the Bulgarian daily newspaper Sega, that the investigators had found no direct communication and only “indirect indications” of ties between the Arab holding an Australian passport and the perpetrator of the attack.

The Bulgarian charge of Hezbollah responsibility for the bombing based on little more than assumption has raised the suspicion in Bulgaria that the government was under pressure from the United States and Israel to reach a conclusion that aligned with the Israeli-American position.

Foreign Minister Mladenov denied that Bulgaria was pressured into issuing a statement on the progress of the investigation. But both Israel and the United States have given evidence of wanting such a statement.

Bulgaria is a member of NATO and has expanded military and intelligence ties with Israel since Israeli relations with Turkey soured in 2009.

Israel also played a key role in the Bulgarian investigation, as Interior Minister Tsvetanov acknowledged in his presentation Tuesday. He specifically thanked the Israeli government for its support in regard to the investigation and said Israel had provided “relevant expertise” in regard to one of the indicators implicitly cited as pointing to Hezbollah – the identification of the false driver’s licenses used by the alleged bomb cell.

Ha’aretz reported Tuesday that Israel and the United States had both feared that, “while the investigation’s finding would be clear, Bulgaria’s public statement would be ambiguous and would not name Hezbollah responsible.”

John Brennan, U.S. President Barack Obama’s primary adviser on homeland security and counter-terrorism, issued a statement that portrayed the Bulgarian investigation as having reached a definitive conclusion. Brennan praised the Bulgarian authorities for “their determination and commitment to ensuring that Hizballah is held to account for this act of terror on European soil".

*Gareth Porter, an investigative historian and journalist specialising in U.S. national security policy, received the UK-based Gellhorn Prize for journalism for 2011 for articles on the U.S. war in Afghanistan.

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This article may not be republished, broadcast, framed, or redistributed without the written permission of IPS – Inter Press Service. Republication of this material without permission from IPS, the copyright holder, constitutes a violation of United States and international copyright laws and may result in legal action.


Filed Under: Europe, Report, Security, Terrorism Tagged With: ,

Domestic Violence Taking High Toll in Armenia

February 6, 2013 by

Global Political Economy Net / IPS

Gayane Abrahamyan

YEREVAN, Feb 05 (EurasiaNet) – Increasingly the issue of domestic violence in Armenia is a topic for public discussion. Yet greater attention to the issue isn’t yet translating into an expansion of programmes to alleviate suffering and address policy shortcomings.In 2012, Armenia set a grim record for domestic violence when six women, ranging in age from 21 to 50 years old, died over the course of six months in incidents involving their husbands or fathers-in-law. Collectively, the six dead women left behind 12 children.

No official registry of domestic-violence attacks exists in Armenia. But a 2008 survey of 1,000 Armenian women by Amnesty International found that more than three out of 10 had suffered from physical abuse, and 66 percent from psychological abuse.

The outcry over the recent deaths prompted activists to believe that the government would start making state funds available for the protection and treatment of victims of domestic violence. But on Jan. 21, the government blocked passage of what would have been the country’s first domestic-violence law, saying that revisions should be made to existing legislation, or to the bill itself.

In the absence of government funding, non-governmental organisations (NGOs) are struggling to meet needs.

“There are many cases, and only NGO efforts do not suffice,” commented Susanna Vardanian, director of the Women’s Rights Center, a Yerevan-based NGO, which is a backer of the stalled draft law.

At present, three private domestic-violence shelters (two in Yerevan and one in the nearby region of Armavir), along with several NGO-run hotlines are all that exist for female domestic violence victims. Over the past two years, the Women’s Rights Centre, which runs two hotlines, four regional crisis centres and one shelter, has received some 2,557 calls from women seeking help, according to Vardanian.

At a facility run by the charitable foundation Lighthouse in the village of Ptghunts, the 55 women residents are mostly unemployed, and either pregnant or raising children. The shelter provides basic job training, as well as psychological counselling.

For decades, domestic violence was a topic that not only battered women, but also officials and law-enforcement authorities shied away from acknowledging or discussing. But now, that has begun to change, with people starting to be held accountable for abusive actions.

For example, Haykanush Mikayelian received a 10-month sentence in 2012 for her role in the abuse of her 23-year-old daughter-in-law, Mariam Gevorgian, over a prolonged period starting in 2009. According to testimony at the trial, Mikayelian burned Gevorgian’s body with an iron and a cigarette lighter, beat her regularly and kept her locked indoors under key.

Although police officers are arguably now more aware of the domestic-violence problem than several years ago, they are often left flummoxed by the lack of state-run shelters and legal mechanisms to prevent ongoing abuse of a woman by a husband or relative.

“As soon as it comes to taking actual steps, we seem to be faced with the same resistance,” remarked Lara Aharomian, director of the Women’s Resource Centre, another Yerevan-based NGO active in addressing domestic violence.

The draft domestic-violence law that the government rejected earlier in January would have tried to strengthen official measures to protect victims by introducing restraining orders and expanding the number of shelters, among other measures.

Activists believe that the six fatal domestic-violence cases in 2012 might have been prevented if Armenia had had a law outlining responses to the abuse, and, correspondingly, providing state assistance for shelters.

“(T)he law proposes the creation of a number of facilities, [and the] training of police, which are preventive measures,” said Anna Nikoghosian, a project manager for the non-governmental organisation A Society Without Violence. If shelters had existed near the homes of the six murdered women, all of whom lived outside of Yerevan, “some . . . might be alive today.”

“There are many badly in need of support, but it is impossible to house all of them in only three shelters,” agreed Lighthouse Director Naira Muradian.

Lala Ghazarian, head of the Ministry of Labour and Social Welfare’s Department for Family, Women and Childcare Issues, stressed that the domestic-violence bill isn’t gone for good. “It just needs some changes” to bring it into line with existing criminal law, she said. “We are all well aware that we need a law, shelter, trained policemen, functional tools, but it implies extensive work to change legislation, and it will be done.”

Some government members have said that parliament, now controlled by the Republican Party of Armenia, could pass a domestic-violence law by 2014 or 2015, once ongoing amendments to the criminal code are complete.

Meanwhile, as the topic’s stigma fades away, many ordinary Armenians affirm openly that they are eager to find solutions. In the village of Burastan, 30 kilometers outside of Yerevan, women in 2006 told EurasiaNet.org that questions about domestic violence “destroy traditional Armenian families". Seven years later, they admitted that abuse is an issue that “has to be addressed".

“Our children have been growing up in an atmosphere of beatings and fights,” commented 67-year-old Karine Galstian, a mother of four. “Only now we realise how wrong it is to keep silent, because we should at least teach our daughters that the husband has to respect his wife, should not beat her, should not humiliate her in front of the children.”

In the absence of further government measures against domestic violence, such realisations could make a critical difference.

Editor’s note: Gayane Abrahamyan is a reporter for ArmeniaNow.com in Yerevan.

This story was originally published by EurasiaNet.org.

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Filed Under: Europe, Gender, Report Tagged With: , ,

This Is What a Humane Economy Looks Like

February 3, 2013 by

Global Geopolitics & Political Economy / IPS

Inés Benítez

MÁLAGA, Spain, Feb 02 (IPS) – The severe crisis crippling Spain is also sparking some creative responses, such the Okonomía project, a teaching initiative that helps individuals and communities to understand the workings of the economy and make more informed decisions to manage their finances."Things have gotten so bad, with people out of work, losing their homes and watching their savings vanish, that something has to be done to economically empower people," said activist Raúl Contreras, one of the academics behind this initiative that in February will open its first school in Benimaclet, a multicultural neighbourhood in the southeastern city of Valencia.

Contreras – an economist who also heads the company Nittúa, which sponsors this project – spoke with IPS about the powerlessness and fear that is taking hold of many people who do not understand how the economy works and how it affects their lives, and are thus made vulnerable to manipulation.

"Doubts, ignorance and fear – in some cases spread intentionally – lead to mistakes, anxiety and difficult situations that could be avoided if people are better informed and equipped to make decisions or choices," Nittúa’s website reads.

One out of every four economically active persons is currently unemployed in Spain, where dozens of families are evicted daily from their homes for failure to meet their mortgage payments, and the measures implemented by the right-wing government of Mariano Rajoy to address the crisis involve huge cuts to health, education and other basic services.

Hundreds of thousands of people in Spain fell prey to "preferential shares" and other financial product schemes and lost all their savings. As the crisis deepened and banks became desperate for cash, they convinced more and more savers to buy these products, taking advantage of their lack of understanding of the ins and outs of investment, and using misleading and distorted sales pitches.

Okonomía – which is financing its start-up needs through a crowdfunding campaign – calls itself a "popular economics school" that "develops dialectical educational processes, building on the reality and economic knowledge of each participant, to enable participants to understand their economic situation so that they can make informed and conscious decisions, both individually and collectively, that will lead to the transformation of society through economic empowerment."

The school is formed by professionals from the fields of economics and education and its activities include training multiplying agents who will spread their newly-acquired knowledge in their immediate social environment.

"The school won’t solve people’s problems, but it will provide a toolbox to help individuals make more informed decisions based on their specific needs," Contreras explained, highlighting the project’s cross-cutting approach to solidarity economy, as it emphasises sustainable alternatives.

While the head of Nittúa stresses the solidarity aspect of this economic model, he says it is not the school’s intent to preach any one model or solution. Rather it seeks to give participants an understanding of economics in general, including a range of economic alternatives, such as ethical banking, responsible consumption, fair trade and the cooperative model.

"A large part of society has realised that a different way of teaching economics is needed," Carlos Ballesteros, a lecturer on consumer behaviour at Madrid’s Comillas Pontifical University, told IPS. "Ninety-nine percent of the world’s business schools stick close to the neoliberal paradigm," which is profit-driven and based on maximising earnings.

Ballesteros said that while Okonomía’s target public is civil society as a whole and its main objective is to teach and inform, on the understanding that "the economy is everyone’s responsibility," it also aims to gather and systematise knowledge on solidarity economy practices that may prove useful to people working in that field.

Okonomía offers semester courses, with in-person classes held every two weeks. The methodology is based on the popular education model developed by Brazilian educator Paulo Freire (1921-1997), who believed that "to teach is not to transfer knowledge but to create the possibilities for the production or construction of knowledge."

In each session an issue is presented and material is provided to facilitate reflection. "The learning process is a group activity. The classes are not lectures, but rather dialogue-based and interactive," Contreras said.

He added that after each session the conclusions drawn from the group’s discussions are published online and posted in an intranet, which will form a database of the school’s results, a sort of "Wikipedia of Popular Economy".

Economist Arcadi Oliveres, one of Okonomía’s advisers, said this project is valuable because it "seeks to reveal to the people the underlying workings of the economy" and "because we’re really in the dark" when it comes to the financial world, he told IPS.

Oliveres, a professor of applied economics at the Autonomous University of Barcelona, believes that "people don’t know that there are alternatives to the traditional economic system" and calls for critically aware citizens who can make informed decisions.

Independently of how financial markets and governments behave, the actions of common citizens also have an impact on the economy, so that people must be conscious that they too can make irresponsible choices as consumers or that their deposits can go to financing environmentally-harmful corporate activities, the economist argued.

"We have to start asking ourselves where our money goes – what do I do with my savings, where do I deposit them and why? – and learn to take control of our finances," Contreras said.

The aim of the school is to help people "understand and then make free, but conscious decisions," he added.

The expert noted that he has not found similar projects anywhere else in the world and that Okonomía, which combines a methodology inspired by Paulo Freire with social innovation methods, has the potential to be replicated outside of Spain "with the support of the social fabric of neighbourhoods and communities".

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Filed Under: Economic Crisis, Education, Europe, Poverty, Report Tagged With: , ,

Iceland Tackles ‘Invisible’ Trafficking

December 28, 2012 by

Global Geopolitics & Political Economy / IPS

Lowana Veal

REYKJAVIK, Dic 27 (IPS) – For 18 months, a Chinese immigrant named Xing Haiou slept on a massage table in a windowless room in Reykjavik after completing his 12-hour workday.Brought to Iceland by his distant relative, Lina Jia, Haiou received no wages between June 2002 and December 2003, although Jia paid his parents a monthly pittance for “borrowing” their son to work in her massage parlour.

Xing Haiou eventually accused Jia of non-payment of salary, and received a sum equivalent to 18 months’ work at minimum wage, including overtime.

At the time, he was not formally recognised as a victim of trafficking and forced labour. Today, authorities in Iceland are making a concerted effort to broaded the definition of those terms to better protect victims and survivors.

According to one source, who spoke to IPS under strict condition of anonymity, three questions can determine whether or not human trafficking has occurred: what was actually being done to the person, what methods were used, and what was the purpose of it?

The Icelandic police’s guidelines for trafficking are largely derived from the Norwegian ‘Guide to Identification of Possible Victims of Trafficking’.

These guidelines also seek to correct three common misconceptions of trafficking: that if the person did not take opportunities to escape, he or she is not being coerced; that individuals cannot be said to be victims of trafficking if their current living conditions are better than their previous ones; and that for a specific case to be termed trafficking, the person or group of individuals concerned must have crossed over a national border.

“If people use a definition of trafficking that is too limited, we are excluding most of the victims. Basically, if a person’s vulnerable situation is being exploited, then it’s trafficking,” according to Margret Steinarsdottir from the Icelandic Human Rights Centre (ICEHR).

“If people come to Iceland of their own free will, even if they know they will be entering a situation in which they will be exploited, they could still be called victims of trafficking,” she added.

Her opinion reflects the framework of the Council of Europe Convention on Action against Trafficking in Human Beings, which was adopted in Warsaw in 2005.

Steinarsdottir, a lawyer, has worked with numerous people she says could be classified as victims of trafficking. Contrary to popular opinion, not all victims of trafficking are ensnared in the sex trade, nor are the victims always women.

In Iceland, she says that forced labour is prevalent in sectors like construction and agriculture, while a large number of trafficked persons end up as au pairs in private houses.

Restaurants also conceal a large number of forced labourers, mostly from Eastern European countries, who sometimes work up to 16 hours a day.

According to Steinarsdottir, many people mistakenly believe that trafficking is masterminded by groups of gangsters, when in fact many cases involve individuals who are lured by false promises of stable employment.

Sun Fulan, a young Chinese woman, was promised an “eight-hour workday doing light household chores, with Sundays off”.

Instead, she ended up working 14 to 15 hours a day delivering newspapers and leaflets, working in a massage salon and helping to renovate three properties owned by Lina Jia, the same woman who brought Xing Haiou to this country.

Despite the long hours, which also included housework, Fulan received only a fraction of her promised salary. Finally, in February this year, she wrote to the authorities in Iceland and China, informing them of her plight.

Steinarsdottir has also talked to immigrant women who got married in Iceland and were then forced by their husbands to work as prostitutes. In many cases, the men take away the women’s earnings and threaten to send them back to their home country if they complain.

This situation too, she claimed, can be classified as trafficking.

Steinunn Gydu- og Gudjonsdottir, who manages the newly established ‘Kristinarhus’, a refuge for women victims of prostitution or trafficking, has also dealt with a case of forced labour.

"It wasn‘t clear whether the woman had been brought to Iceland only for forced labour or also for prostitution, but all the typical signs were there: she didn‘t have her passport, all of her earnings were taken away from her, and she was threatened," Gydu- og Gudjonsdottir told IPS.

Asked how authorities deal with cases of forced labour, which primarily occur around the capital, Reykjavik, Asgeir Karlsson from the Icelandic National Commissioner of Police, told IPS, “We normally send people to the trade unions, but otherwise the local (police) branch in the person’s vicinity deals with such cases.”

“I have not heard of any cases of forced labour this year, and cases do not seem to pop up as often as before the bank crash in 2008,” according to Steinarsdottir.

“But that may be because the people concerned are scared of coming forward and complaining, fearing that they will not be able to get another job," she concluded.

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Filed Under: Crime, Europe, Human Rights, Report Tagged With: , ,
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