Daily Press Cuttings

Press Friday 4^th August

The Economist: Kenya/IMF: Article in the International section under the headline “Dancing in Kenya to the donors' tune” which reports that the IMF have agreed to resume lending to Kenya but conditions for the new three-year $198 million loan are “the toughest ever imposed by the Fund on any government.” The loan should release a further $300 million from other donors but the IMF is insisting on a new corruption law and the inspection of daily balance sheets. Any deviation from the programme will mean a halt to funding. The IMF's firm measures are not only due to Kenya's bad record but also to act as an example to other African countries that they must meet IMF approval if they want to receive aid.

Times: Kenya: Report from Africa correspondent Michael Dynes that 3 million Kenyans face the threat of famine. Local people are competing with each other over depleted grazing areas and water resources. Some experts believe that the worst drought this century is affecting the Horn of Africa and international donors have so far provided less than a third of the $88m food aid said to be urgently required by the UN World Food Programme. Indonesia: Former dictator General Suharto has been formally charged with embezzling up to $400m. President Wahid believes that the former leader has stolen more than $30 billion which is enough to repay Indonesia's entire debt to the IMF and World Bank. An editorial piece entitled “a show trial” suggests that bringing Suharto to justice is a symbolic step but Mr Wahid may be using the case to deflect attention from his own record.

Guardian: Zimbabwe: Editorial entitled “An African Tragedy” criticises President Mugabe for leading Zimbabwe towards ruin. The statement that international aid donors could “keep their money” is described as irresponsible. Following his energy and vision in the 1980's, Mr Mugabe is accused of turning “destructive and vicious.” Indonesia: Further coverage of the corruption charges against General Suharto which says that his health may not be strong enough to endure a trial. US/Republicans: Martin Woollacott reports under the headline “Clinton's foreign forays were dubious. Bush would be worse.” Republican foreign policy will emphasise defence and protection over aid, co-operation and working through the UN.

FT: Zimbabwe: Editorial “Zimbabwe's ruin” criticising President Mugabe for backtracking on conciliatory comments made to South African leader Mr Mbeki. Also ignoring urban opposition and pleas from Kofi Annan, the president is described as being “deaf to all reason.” Separate article by Tony Hawkins which details how the country is tightening fiscal and monetary policy to try and stabilise the economy. Angola: Increased oil revenues have led to endorsement of a government proposal to raise state spending, though the economy is still undermined by the protracted civil war. Angola is sub-Saharan Africa's second largest oil producer but the government has used revenues to finance the struggle against the Unita rebel group. Venezuela: President Chávez plans to embrace the private sector and boost government spending to reactivate the economy but foreign investors have reacted cautiously.

Independent: Indonesia: Editorial which praises the fact that corrupt dictators are being brought to justice. Using the examples of Suharto and Pinochet the article suggests that “no dictator will be able to sleep easy in his bed.” Brazil: Report on the worst floods for more than 25 years in Brazil. Nearly 100000 have fled hillside shanty homes and 48 people have been killed.

IHT: Zimbabwe: More coverage on the issue of farm confiscation and that aid donors have been told to keep their money. Colombia: 700000 state workers have taken part in a one-day strike against government austerity measures. Liberia: The U.S. has repeated a warning that Liberia will face sanctions unless support for rebels in Sierra Leone is halted.

Wall Street Journal: Editorial which again criticises President Mugabe for not responding to international condemnation and failing to do anything constructive for his country.

 

Press Thursday 3^rd August

FT: Ecuador/Debt: Aline van Duyn reports that Ecuador's debt negotiators are confident that 85 per cent of private-sector bond creditors will agree to restructure their debt. The country has asked creditors to reduce its debt burden by at least 40 per cent under a proposal to exchange its $6.65 billion of defaulted obligations for new bonds which mature in 2030. Many investors are expected to opt for the exchange before the deadline of August 9^th but Ecuador is still unlikely to be able to access international capital markets due to a poor credit rating. The country will meet Paris Club official creditors on September 15^th. Russia/Debt: Russia's Finance Ministry yesterday repaid the final instalment of the $400 million “tsarist debt” owed to France in compensation for assets seized following the 1917 revolution. Zimbabwe: Report by Tony Hawkins and Victor Mallet on the impact of yesterday's one-day strike. The majority of the country's 1.4 million workforce observed the strike and most businesses, factories and farms were closed, however it is thought that the stoppage is unlikely to influence government policy. The article goes on to say that following Tuesday's decision to devalue the currency, economists are now predicting a sharp increase in the inflation rate. India/Globalisation: Mr Vajpayee has said that India cannot ignore globalisation without damaging its economic prospects, in response to pressure from within his party to drop liberalisation policies.

Guardian: Zimbabwe: Analysis by Chris McGreal which suggests that the debate has shifted, from whether or not Mr Mugabe would soon step aside as president, to whether or not the country's economy can now survive his rule. Plus further coverage of the strike, together with the growing disillusionment and economic crisis facing the country. Chile: Article by Jonathan Franklin that Chilean media reports suggest that Augusto Pinochet has been stripped of parliamentary immunity by the Chilean supreme court and could now face prosecution for alleged human rights abuses. India/Pakistan: Militants have massacred 100 people in the disputed province of Kashmir, relations between India and Pakistan have are once again in turmoil.

Independent: Zimbabwe: Article by Karen MacGregor which argues that President Mugabe is only interested in the land problem and “it doesn't matter if he destroys a nation.” Chile: Front page report on the probability that General Pinochet will be stripped of immunity, with an official announcement likely tomorrow. Nigeria: Shell has agreed to discuss the demands of hostage-takers in south-east Nigeria.

IHT: AIDS/China: Front page coverage on the Chinese government's lack of action to prevent the spread of the AIDS virus. Up to 600000 Chinese people are now infected but the government spends less on prevention than many smaller countries. US/Republicans: Editorial entitled “Half a Foreign Policy” which praises George W Bush's recognition of the importance of foreign policy but criticises the lack of convincing strategy on issues such as AIDS and poverty. The new Republican commitment to internationalism is only the first step and Mr Bush cannot ignore the half of humanity that lives on less than $2 per day. UN: Opinion by Jim Hoagland on UN peace-keeping operations. Clinton is planning a triumphal visit to Nigeria later in August as Africa's conflicts rage out of control. It is time for the international community to invest new resources and “put up or shut up.” Philippines: Article in the Finance section investigating the country's economic problems and the return of large-scale corruption.

Press Wednesday 2^nd August

FT: G7/Debt/Arms: Report from Guy de Jonquières, Gillian Tett and Stephen Fidler that the G7 industrialised nations are urging the OECD to take stronger measures to stop export credits being used to help poor countries buy arms and other “non-productive” items. The G7 initiative, led by Britain and the US, aims to create pressure to change dubious policies and prevent developing countries from squandering debt relief. However the OECD cannot impose binding rules and members of the export credits committee are expected to argue that the G7 should not be setting priorities. Total financing provided by export credit agencies exceeds World Bank lending but critics argue they are less accountable. The OECD began compiling reports in 1999 in an attempt to strengthen measures against the use of export credits to HIPC'S for “unproductive” purposes but the G7 proposal would take this further by covering trade financing to all low income countries. Japan/Debt: Gillian Tett writes that in spite of rising national debt, the Japanese government is pressing ahead with spending plans and next year's budget is likely to be similar to this year's record high. A decade of stimulus packages to boost growth have pushed debt to 130 per cent of GDP. A review of Japan's sovereign debt will be announced in the coming months. Zimbabwe: The currency has been devalued 24 per cent against the dollar. This may worsen relations between the government and trade unions as the country faces a one-day strike today. UN/Sierra Leone: A programme by the Sierra Leone government designed to end trade in conflict diamonds has been met with scepticism by the UN sanctions committee. Africa: A top US aid official has stated that more than 20 million lives are at risk in the Horn of Africa due to food shortages. The immediate cause of the problem is reported as drought, compounded by deep poverty and armed conflict. US: More than 200 people have been arrested in Philadelphia in demonstrations at the Republican National Convention. Activists are protesting on a broad range of issues including globalisation, big money and free trade. Yesterday's Daily Express also mentioned protests focussing on the debt issue.

Guardian: Zimbabwe: Front page coverage under the headline “Mugabe mobilises army for huge farm invasion.” The number of farms targeted for confiscation without compensation has been increased from 804 to more than 3000 and the government plans to resettle 500000 black families in the next few weeks. Hopes of a compromise look slim as today's strike is expected to close down major cities and the economic crisis is growing worse by the day. Mozambique: Picture and article featuring Cecilia Mabuiango who gave birth in a tree during the floods earlier this year. Following some time in the US as part of a campaign by Democrats in Congress to increase US aid to Mozambique, Ms Mabuiango briefly stopped in London.

IHT: G8 summit: Article by Frank Gibney, president of the Pacific Basin Institute, which suggests that Asian countries deserved a greater voice at Okinawa. He questions the cost and worth of holding summits, but if they are to continue should include Asian representatives. “The time has passed when any regional or cultural grouping could call the tune and expect the rest of the world to whistle.” Africa/Oil: Editorial entitled “Africa's Oil Curse” which discusses the risks of mismanaging oil revenue in Equatorial Guinea.

Times: Debt: Letter from Professor John Pratt in response to a leading article on July 21^st. The writer draws attention to a report from the US General Accounting Office and World Bank statements to stress the need for promoting science and technology in developing countries. He suggests that poor countries must be given the tools to achieve economic growth and escape their debt problems.

Independent: Indonesia: Report on a bomb in Jakarta at the home of the Philippines ambassador. The incident could be connected to Islamic separatists fighting for independence in the southern Philippines or to rising political tensions in Indonesian provinces. Misc: Ken Livingstone has announced that to develop economic, political and cultural ties, London will be twinned with Third World capitals.

Telegraph: Zimbabwe: David Blair reports on a plot to assassinate Geoffrey Nyarota, editor of Zimbabwe's leading independent newspaper.

Express, Mirror & Telegraph: Mozambique: All three papers include photographs and articles on Cecilia Mabuiango who gave birth in the tree.

Press Tuesday 1^st August

FT: Africa/Capital flows: Article by Michael Holman on the UNCTAD report which calls for a doubling of annual official aid to sub-Saharan Africa to $20 billion over the next decade and a rethink by both donors and African governments on development strategy. The report, entitled “Capital Flows and Growth in Africa”, describes how a kickstart of this size could trigger a “virtuous circle” of rising national savings, investment and faster growth and would “replace donor fatigue with investor enthusiasm.” The cost of this proposal is calculated at only 5 cents for every $100 of annual consumer spending in the OECD countries. An accompanying graph shows how the net inflow of official capital into sub-Saharan Africa has fallen substantially since 1990. Globalisation: Philip Knight, chairman and chief executive of Nike, writes in the “personal view” section praising the UN's Global Compact as a necessary framework for monitoring the behaviour of multinationals. He says that globalisation works but remains imperfect and that dialogue is needed. In a separate report Richard Tomkins interviews Douglas Daft, Coca-Cola's new chairman, who has taken up the catchphrase “think local, act local” in an attempt to improve the companies fortunes and avoid the anti-capitalist backlash. Ecuador/Debt: The rating agency Standard & Poor's have assigned a B-minus rating to Ecuador's new international bonds due to an onerous level of fiscal and external debt. Indonesia/IMF: The latest agreement with the IMF to release $400 million of loans in late August may lead to financial autonomy for Indonesia's outer regions. Congo/Diamonds: The country is overhauling its diamond marketing regime to guarantee that exports are free from illicit “conflict diamonds.” Japan/Corruption: Coverage of the aftermath of the donations scandal and resignation of Kimitaka Kuze, former head of the Financial Reform Commission. Editorial which suggests that Mr Mori's apology is not enough and more is needed to restore financial and political credibility. Côte d'Ivoire: Demonstrations in the two main cities have been broken up by security forces as political tension rises in the run up to presidential elections next month. Venezuela: Report on the landslide re-election of President Chávez. Editorial which suggests the margin of victory shows that a majority of people back the radical constitutional reforms but that Mr Chávez now needs to embrace more fully market friendly economic policies. Libya: Russian leader Vladimir Putin has accepted an invitation to visit Libya amid fears that he is reviving Cold war regional balance of power games.

Guardian: Liberia/Diamonds: Western governments have presented detailed evidence to the UN that President Taylor of Liberia is supplying rebel forces in Sierra Leone with guns and equipment in exchange for diamonds. Foreign Office minister Peter Hain has warned that both Liberia and Burkino Faso face international sanctions. UN sanctions/Iraq: Full page coverage on the anniversary of the invasion of Kuwait. Report and Comment which highlight the impact of sanctions and suggest that support for them has eroded over time.

Times: Kenya/IMF: In exchange for a new loan to Kenya of $200 million, the IMF has imposed a series of conditions including an unprecedented “wealth declaration law.” The countries political and administrative elite, including President Moi, will be forced to make annual declarations of their personal wealth. Opposition critics of Mr Moi say the new law does not go far enough.

Telegraph: Zimbabwe: President Mugabe has increased the number of farms threatened with seizure to more than three thousand. The Commercial Farmers Union has decided to support the general strike which may involve up to 500000 workers and paralyse the national economy.

IHT: Indonesia/IMF: The IMF showed confidence in Indonesia's economic restructuring by agreeing to release a $400 million loan. This could help restore investor confidence in the country. Venezuela: Front page coverage of Mr Chávez's election victory in Venezuela suggesting the people have endorsed the country's “peaceful revolution.” Burundi: Local villagers have blamed the Tutsi-dominated army for a recent massacre of 53 civilians who refused to move into a temporary “regroupment” camp. Asia/Burma: Report that ASEAN and the EU are working together to encourage Burma to reform.

Further Weekend coverage

Sunday Times: G8 summit/Debt: Letter from Ann Pettifor in response to last week's leader entitled “Give them Short shrift.” The Jubilee 2000 Director acknowledges that some African elites are extremely wealthy and powerful but criticises the use of sweeping generalisations for the huge continent. The letter goes on to emphasise that by financing and arming African countries, the west must take some responsibility for protecting elites from the democratic demands of their own people.

Sunday Telegraph: G8 summit/Debt: Letter from Ann Pettifor in response to a leading article last weekend which described the Jubilee 2000 campaign as a “sophisticated lobby..... designed to give the impression of a groundswell of popular opinion.” The reply highlights that grassroots support is a reality not an impression with 18 million people signing the Jubilee 2000 petition and thousands campaigning on the debt issue in Britain and the developing world. On blaming borrowers for the misuse of loans, the letter points out that lenders such as Britain have given loans which subsidise arms sales and do not benefit the poorest in developing countries.