Daily Press Cuttings

 

Friday 26th May 2000

FT: HIPC/Jubilee 2000: A senior World Bank official yesterday hit back at those campaigning for faster debt relief for the poorest countries. Axel van Trotsenburg, said a large expansion of the debt relief initiative could threaten the World Bank's ability to lend to middle-income countries. Jubilee 2000 has pushed for the effort to be expanded radically, but Mr van Trotsenburg said it would mean “robbing Peter to pay Paul”. He said: “Bangladesh would end up paying for relief for Uganda.” The initiative, expected to deliver debt relief to 20 countries by the end of the year, is progressing more slowly than some had hoped. Debt relief for Uganda, the first country to qualify, was recently delayed by the Paris Club of creditor nations because of fighting between Uganda and Rwanda in the Congo. Ann Pettifor, director of Jubilee 2000, said Mr van Trotsenburg was under a “sad illusion” if he thought the pressure for more debt relief would dissipate. Congo (Kinshasa)/ Diamonds: A diamond company—Oryx, listed in the Cayman islands—with links to the Zimbabwean and Congo governments and with concessions worth $1 billion in Congo is seeking a listing on the London stock market. China: Feature article focusing on China's impending entry into the World Trade Organisation, and arguing that it is certain to be followed by a painful period of adjustment on both sides. Global finance: Some of the world's leading offshore financial centres have been warned to improve supervision and co-operate with other regulators to avoid being frozen out of the international financial system. The Financial Stability Forum yesterday published a list of 25 offshore financial centres (OFCs) which pose significant risk to the stability of the international financial system. The list includes the Bahamas, Cayman Islands and the British Virgin islands, Liechtenstein, Panama and Belize.

IHT: Congo (Kinshasa): For the first time since fighting erupted in Congo 22 months ago, Africa's most far-reaching conflict is producing promising news. A cease-fire negotiated six weeks ago has held firm in stark contrast to an accord signed in August. Governments that have been at each other's throats are exchanging peace envoys. And the countries that rushed into what was supposed to be a civil war now appear anxious to leave. Cambodia: After months of often acrimonious exchanges over who should ultimate control war crimes trials for the Khmer Rouge, the UN has conceded to Cambodia the right to appoint one of two prosecutors. IMF: The new head of the IMF, Horst Koehler, said that he had set up a special group to focus on reforming the much-criticised lending institution. In a subtle pull back from his predecessor's drive to push the IMF toward poverty alleviation, Mr Koehler said he would be looking for separate roles for the IMF and World Bank. “The World Bank and the IMF can and must work very closely together, but there must be a clear division of labour where each side knows which its core responsibilities are.” Burma/Myanmar: Article looks at the current situation in Myanmar, 10 years after the elections where democrats won a landslide but which the military chose to ignore. Around 40 per cent of the budget is spent on the military and the UNDP reports that only 25 per cent of Burma's schoolchildren complete basic education. The health care system has collapsed because of a serious shortage of medical supplies and personnel.

The Guardian: Ethiopia: Ethiopia claimed victory in its two-year war with Eritrea yesterday following its capture of Zalambessa, denying Eritrean claims that it voluntarily withdrew from the key border town. Venezuela: Venezuela's highest court yesterday suspended this week-end's presidential, parliamentary and local elections, giving problems with computer software as the reason.

The Economist: Development/World Bank: Focus on a recent World Bank paper by David Dollar and Aart Kray, showing that contrary to the views of the critics of global capitalism, economic growth is good for the poor.

Thursday 25th May 2000

The Times: Zimbabwe: President Mugabe has invoked special presidential powers to allow uncompensated seizure of 841 white-owned farms. He has made land reform the focus of Zanu's election campaign and is likely to hand over some land publicly to black settlers before the election on June 24. Nigeria: A curfew has been imposed in Kaduna in an attempt to calm the violence.

The Guardian: Sierra Leone: The deaths of two journalists have come with new controversy for the British Government over reports that British arms have fallen into the hands of rebel gunmen, some of them children. The UN estimates that there are about 5,000 child combatants.

IHT: Peru: The Organisation of American States has announced that a fair vote is impossible and has asked President Fujimori to postpone runoff until problems can be resolved.

Le Monde: Haiti: There was a large turnout (60%) in relatively peaceful elections on 21st May. Deprived of international aid since Parliament's dissolution in 1999, electors have proved their wish to get out of the dead end situation.

El Pais : Venezuela: Interview with Presidential candidate Francisco Arias Cardenas, who accuses his rival Hugo Chavez of being out-of-date and leftwing.

Wednesday 24th May 2000

The Guardian : Ethiopia/Eritrea: The Ethiopian prime minister said yesterday that his country's two-year border war with Eritrea could be over in days, generating speculation that Eritrea is about to collapse. Confirming reports that Ethiopia had launched an attack on the key Eritrean-held town of Zalambessa, Meles Zenawi told western diplomats in Addis Ababa that his army was on the verge of breaking through Eritrean defences. Meanwhile a Sudanese government official said yesterday that 100,000 Eritrean refugees had crossed into Sudan since the conflict began.

FT: Philippines: The Philippine peso fell to a new low yesterday amid growing concerns that the current political instability will hit economic growth. The markets are concerned at the government's handling of a string of security problems, including two recent bomb attacks in Manila. Philippines/finance: President Joseph Estrada yesterday signed a new law that enables greater foreign participation in Philippine banks. Burma/Myanmar: A team from the International Labour Organisation arrives in Burma today in a last-ditch effort to halt the widespread practice of forced labour. Nigeria: The Nigerian army has been deployed to quell fresh violence between Christians and Muslims in the city of Kaduna where witnesses say dozens have died. Thailand: Article focuses on the strained relations between Thailand's finance minister and the central bank governor . Behind the arguments lies a very real policy problem with no easy answers—how to pay for the black hole created in the financial sector by the crash of the baht in 1997. Asia: The Asian Development Bank made its first sizeable visit to the international bond market this year yesterday with a $1 billion five-year global deal. The ADB, which is an AAA rated supranational organisation, lends around $5 billion a year to fund development projects across Asia. Sierra Leone: FT leader says that Tony Blair should set out clearly what the long term objective of the troops in Sierra Leone is. Otherwise he should not risk casualties in an uncertain cause.

IHT: AIDS/South Africa: Washington Post leader calls on South African leader Thabo Mbeki to speak out more on the AIDS crisis in his country. Some 1600 South Africans are being infected every day. UN/NGOs: Secretary General Kofi Annan, hoping to dissuade the disparate forces of anti-globalisation from attacking a UN millennium assemblyin September, has told a gathering of independent groups that the solution to global inequalities is not confrontation but co-operation with international organisations.

The Independent: Zimbabwe: The political violence in Zimbabwe is spreading from the countryside to schools and businesses in urban areas as general elections approach, the main opposition party and witnesses said yesterday. “At least 80 schools have been forced to close for a day or for longer,” a teacher said.

Tuesday 23rd May 2000

The Guardian : UK/Corruption: The government is to announce new laws aimed at cracking down on companies paying sweeteners to win lucrative foreign contracts after strong international pressure forced a change of heart in Whitehall. Bribing corrupt foreign officials is to be made a criminal offence in a move designed to bring Britain into line with other leading nations. Peru: The opposition candidate for the Peruvian presidency, Alejandro Toledo, withdrew from the May 28^th electoral run-off yesterday, accusing the incumbent president, Alberto Fujimori, of vote-rigging. Sierra Leone: Six UN peacekeepers have been found dead in Sierra Leone, killed by rebel soldiers.

FT: Eastern Europe: Jean Lemierre, the senior French finance ministry official who was yesterday appointed president of the European Bank for Reconstruction and Development, will lead a comprehensive review which could bring a sharp increase in lending to Russia and the rest of the former Soviet Union. Mexico: Feature article looks at Vicente Fox, whose flamboyant presidential campaign is posing a serious challenge to the party that has governed the country for more than 70 years, the Institutional Revolutionary Party. Elections are on July 2^nd. UK/Millennium: FT leader criticises the decision to provide £29 million of extra funding for the Millennium dome, arguing that it should be sold to the highest bidder.

IHT: Sierra Leone: Rebels freed a further 29 UN peace keepers via neighbouring Liberia on Monday, with a message that their leader, Foday Sankoh, should be released within 13 days. Ethiopia: The Ethiopian prime minister, Meles Zenawi, held the door open on Monday to peace talks with Eritrea, but insisted that Ethiopia would press on with its successful offensive against its neighbour in the meantime.

Monday 22nd May 2000

The Guardian : Uganda/debt: Debt campaigners yesterday accused the western governments of political interference in a global plan to cancel the loans of some of the world's poorest countries after it emerged that western creditors have postponed hearing the Uganda government's case for a debt write-down. The Paris Club announced that it would not be considering Uganda at its meeting this month. The group rarely explains its actions, but sources at the World Bank say concern about clashes between Ugandan and Rwandan troops in the Democratic Republic of Congo are behind the decision. Ann Pettifor, director of Jubilee 2000 coalition, which backs an independent international arbitration process to resolve the debt crisis, described the decision as outrageous. “Uganda is the first and only country to get debt relief since the promises made in Cologne. It is clear creditors should not be given the responsibility to cancel debt because they simply cannot bring themselves to do it. We need an independent process.” Ethiopia/Eritrea: The Ethiopian army continued its lighting offensive deep inside Eritrea yesterday, threatening its neighbour's capital Asmara. Ethiopia took the Eritrean town of Om Hajer, on the borders of Ethiopia and Sudan, in a move designed to protect the western flank of its army, a government official said. Hundreds of thousands of Eritreans have been displaced by Ethiopia's advance and are reportedly in dire need of assistance.

FT: Peru: Peru's political crisis deepened at the weekend as Alberto Fujimori, the incumbent president, rejected growing pressure to delay the presidential run-off with the challenger, Alejandro Toledo, next Sunday. In mass meetings throughout the country, Mr Toledo repeated his refusal to participate in a process he—and many independent observers—claim is fraud-ridden and called for a boycott of next Sunday's poll. Russia: The European Bank for Reconstruction and Development (EBRD) has urged Russia to break up the monopoly of state banks, saying the country's financial system must be rebuilt from scratch. Charles Frank, acting president of the EBRD, has called for the state-owned Sberbank to be reformed. The Russian government is unwilling to break up the monopoly of Sberbank—which owns some 80 per cent of Russia's total deposits. Germany: Full survey on Germany, arguing that corporate restructuring, political reforms and moves to play a bigger role in world affairs are signs of tumultuous change.

The Voice: Ecuador: Ecuador has said it will ask the World Trade Organisation to allow it to take action against the European Union for its rules on banana imports. Last month the WTO said the EU's stance was costing Ecuador—the world's No. 1 banana producer—some £120 million a year in lost trade. Kenya: The World Bank is expected to approve a $150 million loan to Kenya, provided its government ensures no corrupt officials siphon it off into their private bank accounts. Resumption of aid to Kenya is now the focus of discussions between the World Bank, IMF and senior Kenyan officials. The IMF suspended balance of payments support to Kenya in 1997, citing high level corruption and lack of progress in privatisation and inefficient state corporations.

IHT: Ecuador: (Saturday's paper) The Paris Club ended talks with Ecuador without a decision and said they would meet again to "finalise their discussions" on June 20. Haiti: Elections held on Sunday are against a backdrop of economic chaos, political violence and assassinations. Credible elections would unlock $600 million of frozen international loans.

El Pais: Argentina: Two days before IMF head's visit, Finance minister Jose Luis Machinea announced further budgetary adjustments to try to maintain the fiscal policies agreed with the IMF. Amidst growing social conflict because of 22 months of recession and 15% unemployment. Increased interest rates in US have had a negative impact on debt payments.