| Daily Press Cuttings |  |
| Daily Press Cuttings | |
Friday May 19th 2000
FT: Sierra Leone: The British government handed over Foday Sankoh, the leader of the rebel Revolutionary United Front, to the Sierra Leonean authorities after seeking assurances that he would be held securely. Ecuador: Ecuador was given the green light yesterday by the World Trade Organisation to impose trade sanctions against $201.6 million worth of European Union goods, services and intellectual property in their banana dispute. Africa/Global finance: Private capital flows to Sub Saharan Africa, contrary to popular conception, increased rapidly from 1990-97 according to a report produced by the Forum of Debt and Development. Amongst the findings of the 180 page report was that between 1992-95 Foreign Direct Investment tripled to Sub Saharan Africa, a rate which was faster than for any other developing region. Indeed, even though the fast growth rates can partly be accounted for as the region started at a low absolute level the inflows are “highly significant as a proportion of gross fixed capital formation''. As a result the total SSA portfolio investment stock of $10.3-12.3 bn “reflects unprecedented interest by portfolio investors since 1995''.
The Guardian : Zimbabwe/UN: The UN yesterday announced it is to intervene to try to break the deadlock between Britain and Zimbabwe in the land dispute. The UN move was negotiated behind the scenes during the past few days by the South African President, Thabo Mbeki. Ethiopia/Eritrea: The UN Security Council imposed one-year arms embargo on Ethiopia and Eritrea yesterday in an attempt to force an end to the conflict. Africa/Health: A new patent treaty designed to comply with World Trade Organisation rules could increase the cost of essential medicines and put lives in danger in some of Africa's poorest nations, according to Medecins Sans Frontieres. MSF is urging countries not to ratify the 1999 Bangui treaty which revises patent law for the 15 francophone nations that belong to the African Organisation for Intellectual Property. Iran/World Bank: The World Bank, in opposition to the US, approved the first loan in seven years to Iran of £232mn. The US secretary of state, Madeline Albright, said she had asked other governments to oppose the loans while Iran was conducting a `'show trial'', and because of Iranian sponsored terrorism which by US law means that any vote must be against loans. However, in the end only the US voted against the loan, whilst France and Canada abstained. Consequently, despite Board members discussing the possibility of delaying the loans they decided to go ahead. President of the World Bank, Jim Wolfensohn, commented that `'executive directors have noted that the consideration of economic and human needs underpins the approval of theses loans''.
The Economist: OECD/Wealth: Only five years ago almost all rich countries had budget deficits averaging 4% of GDP. However, next year the Euro area is expected to move into surplus, whilst the American deficit of 6% in 1992 is now only 2% and is expected to be eliminated by 2013. Only Japan bucks the trend which has a budget deficit of around 8% GDP. As a result OECD countries are expected to run a deficit of 0.6% GDP next year – still the smallest since 1973. One reason for improvement in budget deficit are government windfalls from the auction of third-generation mobile phone licenses. Britain's recent auction raised $34 bn (£23 bn), whilst Germany's auction later this year is expected to raise $55bn. In total, sales of licences in the euro area could bring in _150 billion.
FT: UK/Aid: The UK's Department for International Development, DFID, could be in line for a budget increased of up to £1 billion a year in the government's comprehensive spending review in July. The increase would be notable victory for Clare Short, the international development secretary, who yesterday condemned the European Union as “the worst agency in the world” for providing emergency and development aid to needy countries. Eastern Europe: The European Bank for Reconstruction and Development, the biggest investor in the former Soviet bloc, plans to increase its investment flow in to the region this year to a record of about _2.5 billion, up from _2.2 billion last year.
The Independent: Indonesia: Twenty four Indonesian soldiers and one civilian were sent to prison yesterday for massacring 57 villagers in the troubled province of Aceh. No senior level officers have been charged. Russia: The Russian parliament yesterday overwhelmingly approved Mikhail Kasyanov, a financial technician nominated by President Vladimir Putin, despite his close links to two powerful oligarchs. He was close to Boris Berezovsky and Roman Abramovich—pillars of the government of Boris Yeltsin.
Wall Street Journal: Indonesia: Leader argues for a currency board system for Indonesia to stabilise the currency.
IHT: Sierra Leone: Foday Sankoh, the rebel chief, was captured after his refusal to comply with terms of peace agreement signed 9 months ago plunged the nation back to the brink of civil war. Dominican Republic: Populist opposition leader Hipolito Mejia claims to have majority for victory in elections but there may have to be a second round on June 30. The present government's market orientated policies have expanded the economy by almost 40% but failed to lift most people out of poverty. IMF/Indonesia: A loan deal has been signed clearing the way for the IMF to dispatch $400 million to the country.
El Pais: - Peru: Opposition candidate Alejandro Toledo announced that he would withdraw from the election if there were no guarantees about the electoral procedure. Nicaragua: Minister of Defence Jose Antonio Alvarado resigned on Tuesday after having his Nicaraguan nationality withdrawn. He had left the country during the Sandanista revolution (1979 - 1990) and taken US citizenship.
Guardian : Sierra Leone: Rebel leader Foday Sankoh has been captured in Freetown and faces a possible death penalty. EU/Aid Agency: The EU's external relations commissioner, Chris Patten, said that the current backlog of unpaid commitments to aid recipients world-wide totalled $18.7bn, and the average delay for disbursements and payments was four and a half years.
Times: Africa in Crisis: two pages of articles on Sierra Leone, South Africa, and Zimbabwe with commentary.
IHT: Indonesia: Comment from World Bank country director for Indonesia, Mark Baird, that Indonesia's problems are forcing the World Bank to rethink its role. Three issues are at the forefront of the debate: debt, corruption and public participation in decision-making. Total government debt rose from $51 billion in March 1998 to $147 billion today. This is 92 per cent of GDP. Just paying the interest on the debt will absorb 45 per cent of government revenue in the current fiscal year. Haiti: Comment from former US ambassador to Haiti, who argues that Washington must stay out of Haiti's internal political processes. Democracy cannot be imposed and the only condition that the US and others should insist on is that there be no organised political violence—no death squads, no killing of political opponents. Beyond that, let the Haitians sort things out for themselves.
FT: Zimbabwe/World Bank: The World Bank cut off funding for Zimbabwe yesterday because of debt arrears amounting to tens of millions of dollars, adding to the woes of an economy already reeling from pre-election violence orchestrated by the ruling Zanu-PF party. EU: The European Commission wants to create a single body to handle external aid—tentatively called Europe Aid—as part of an action plan to tackle the woeful state of the EU's _9.6 billion a year aid programme. Eastern Europe: The countries of the former Soviet bloc will this year post their fastest growth since the collapse of Communism, according to the European Bank for Reconstruction and Development. Japan: The new administration of Yoshiro Mori came under a cloud yesterday after the prime minister said that Japan was a divine country with the emperor at its core and the finance minister, Kiichi Miyazawa, was accused of offering bribes. Ethiopia: Ethiopia said its forces had penetrated deep into south-western Eritrea in their savage border war and were fighting for control of strategic towns in the region. Health: The Bill and Melinda Gates foundation, the world's largest private foundation, announced a grant of $28.5 million towards the complete eradication of Guinea worm diseases by 2005. All countries suffering from the disease are in sub-Saharan Africa. Global finance: Feature article argues that debate on the reform of the international financial system after the Asian crisis is deadlocked and asks whether the new managing director of the IMF, Horst Kohler, can make a difference. Indonesia: Former armed forces chief, Wiranto, formally resigned yesterday as minister for political and security affairs after facing questions from the Attorney General over human rights abuses in East Timor last year.
Guardian : Zimbabwe: The Commonwealth Secretary General, Don McKinnon, promised yesterday that to send more than 40 observers to monitor next month's parliamentary election in Zimbabwe. He said that he believed that it was possible to have free elections there. Sierra Leone: There is growing political pressure on British commanders in Sierra Leone to rein in the military assault against the Revolutionary United Front because of new threats against almost 500 UN peacekeepers held hostage by the president of neighbouring Liberia. Ethiopia/Eritrea: The US and Britain were last night pushing for a UN arms embargo on Ethiopia and Eritrea in response to the renewed outbreak of war between the two east African neighbours.
Daily Express: Aid: Article focuses on a report from Oxfam which shows that western governments are giving a third less in humanitarian aid than 10 years ago, and where that money ends up is a lottery.
FT: Zimbabwe: Zimbabwe's general election is to be held on June 24th and 25th, government officials said yesterday, amid reports of the beating abduction and killing of opposition supporters by members of the ruling Zanu-PF party. Sierra Leone: Britain is pressing the G8 to sign up to a crackdown on the trade in illicit diamonds that has fuelled the Sierra Leone civil war. FT leader says that in committing 1000 troops to Sierra Leone, the British government has taken a huge gamble. The fate of Sierra Leone, the credibility of the UN and its role in resolving other African conflicts rest on the outcome. Environment/food: The inventors of a rice genetically modified to combat Vitamin A blindness have signed a ground-breaking deal with Astra Zeneca that will give Third World farmers free access to the grain. Indonesia: The Indonesian economy could be growing at less than half some previous estimates, amid political uncertainty and a weakening currency. Official figures placed annual economic growth since the first quarter of 1999 at 3.2 per cent, less than half some previous market forecasts. Mexico: Mexico's trade ministry unveiled yesterday details of a new tariff regime for assembly-for-exports in a bid to remain competitive with its free trade partners, the US and Canada.
IHT: Ethiopia: More than 100 000 people staged a noisy, sometimes violent demonstration on Monday in Addis Ababa against the USA and Britain for their role in a UN resolution condemning the latest flare-up in Ethiopia's two-year conflict with neighbouring Eritrea.
The Times: Aid/EU: EU External Affairs Commissioner, Chris Patten, will today act to tackle a catalogue of shambles and incompetence in the EU's £7 billion aid programme. Among the examples is _200 million for reconstruction in Central America after Hurricane Mitch. Two years later, none of this has been spent.
Guardian : World Trade: The director general of the World Trade Organisation, Mike Moore, has decided to confront critics of free trade after the damage done in Seattle. In its annual report the WTO says that "Globalization is not a programme or an agenda. But the widespread public confusion and apprehension about it calls for a positive agenda from governments and international institutions if they are to forestall a populist and protectionist backlash."
The Independent: Sierra Leone: A British airline, Foyle Air, and a Gibraltar-based arms trader were accused by the UN yesterday of exporting tons of lethal weapons which were eventually delivered to the rebels in Sierra Leone. Aid/UK: New figures on aid spending showed Britain gave 0.23 per cent of its gross national product last year compared with 0.27 per cent in 1996. Clare Short said that DIFD had spent £2.2 billion on aid in 1999-2000, a rise of 8.5 per cent on last year in real terms. Burkina Faso: President Blaise Compaore of Burkina Faso has shown strong backing for the rebels in Sierra Leone and Angola's UNITA movement by his readiness to trade arms in return for diamonds.
Wall Street Journal: Latin America: Risk aversion amongst foreign investors in Latin America is increasing, with the result that economic growth in Latin American economies may slow.
IHT: Debt/USA: Washington Post leader focuses on the decision of the US Congress not to provide funding for the HIPC initiative in the current budget, and argues that if the US does not provide funding then contributions from other countries will be put into jeopardy. The Senate Appropriations Committee has set aside only $75 million of the $435 million necessary for the US to shoulder its share of the burden. Just as ominously, the Senate leadership seems inclined to attach conditions to the money, amongst these reform of the IMF. The editorial argues that Congress should not tie debt relief to these issues, as economic policy conditions are already attached to both aid and debt relief, and worthwhile debate on IMF reform should not be allowed to derail urgently needed action on debt. Senate leaders should be pushing for more resources to cancel debt in order to encourage other countries to honour their pledges. Zimbabwe: Zimbabwean president Robert Mugabe has now denounced the violence for the first time but insists squatters will not leave until land redistribution has started. The cattle ranch of former Rhodesian leader Ian Smith has been occupied by landless farmers. Trade/US: Bill Clinton is expected to approve legislation passed by Senate which would lower tariffs and quotas on products from sub-Saharan Africa, the Caribbean and Central America.
El Pais : Brazil/IMF: President Cardoso criticised the IMF over its debt policy with Brazil, arguing that the 'the way in which (the IMF) calculated debt service and amortisation of foreign debt left the government with resources for nothing else'.
FT: Africa/poverty: Article entitled `Long snakes, short ladders' by Michael Holman and Tony Hawkins highlights how poverty is the background to Africa's problems and suggests that undiscriminating donors have done as much harm as good. More than 40 per cent of Africa's population lives on less than $1 a day despite an estimated $270 billion in net aid since the mid-1970's. Tackling Africa's crisis will require a global initiative and recognition of donor mistakes. Japan: Japan's 84th prime minister Keizo Obuchi died yesterday six weeks after a stroke. Zimbabwe/South Africa: An ANC delegation met Zimbabwe politicians last weekend in Zimbabwe with a view to ensuring free and fair elections. FT weekend: Africa/US: Article describes the whistle-stop tour of African trouble spots by US ambassador to the UN, Richard Holbrooke, including his attempts to bring Ethiopia & Eritrea back to the negotiating table.
Guardian : Environment/Christian Aid: Christian Aid has launched a report entitled 'Unnatural Disasters', which lays the blame for recent natural disasters at the door of the rich nations and their excessive pollution.
The Independent: Sierra Leone: Comment by Cameron Duodu that western inaction over Africa is insulting and racist.
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