| Daily Press Cuttings |  |
| Daily Press Cuttings | |
Press Friday 28th July
Economist: G8 summit/Debt: Leading article under the headline “On top of the world” which criticises the annual promises of G8 leaders and then the failure to act. Each year the leaders “face the occupational hazard of humbler soothsayers everywhere: how to explain to their followers why nothing much has changed.” The G8 could only “reaffirm” the Cologne HIPC initiative but only nine countries have qualified and then only received partial relief. Tanzania has complained that the Cologne promise of “broader, deeper and faster” debt relief actually increased the number of hoops they have to jump through. The article goes on to say that this year's idea of an IT charter just gives the impression of giving something new to talk about. Perhaps next year's summit should concentrate on “action not self-indulgent blather?” IMF reform: Full page article questioning whether Horst Köhler is the right person for the job of overhauling the IMF.
Guardian: G8 summit/Debt: The Editor magazine features a round-up of international press coverage of the Okinawa summit. Includes a piece from Monday's Irish Times which says that G8 proposals amounted to “little more than a Band-Aid”. The debt relief programme has been designed to make states solvent so they can pay back the remainder of their debt and not to allow countries to tackle poverty. Also letter from Sue Cooper which suggests the G8 should have used video-conferencing and donated the £500 million cost towards an African country. Peru: Opposition protests are planned today for the swearing-in of Peru's president for a controversial third term. Up to 300000 demonstrators are hoped for and thousands of riot police have been placed on standby. Arms: British foreign office minister Peter Hain has accused a former KGB officer of continuing to supply arms to rebel Unita forces in Angola despite UN sanctions. Mr Hain has also criticised Gabon authorities for failing to take action against the illegal trade in diamonds. US/Arms: Jonathan Steele reports on the appointment of Dick Cheney as George W Bush's new running mate. In the past Cheney has supported the idea of a nuclear shield against Third World states and backed US funding of contras in Nicaragua. Burma: Following yesterday's reports, further coverage in an editorial and article by Glenys Kinnock who suggests a boycott of the country. Immigration: Front page report of a paper drawn up by France that Europe should accept 75 million new migrants by 2050. A recent UN report stated that most immigrants would come from developing countries.
FT: Ecuador: To reduce the country's debt burden Ecuador has approached private creditors with a proposal to exchange its $6.65 billion of defaulted obligations for new sovereign global bonds which mature in 2030. Jorge Gallardo, head of the country's debt renegotiation commission, announced that the Brady and eurobond exchange proposal is sustainable in the medium and long-term. World Trade: Report by Edward Alden about a new series of initiatives to counter the charge that trade liberalisation has threatened environmental and labour standards. The plan by multinationals and governments, under the auspices of the UN, is however purely voluntary and criticised by Susan Aaronson of the National Policy Association as “sincere but totally non-binding.”
Independent: Sudan: The US government was sued yesterday for $50 million in damages for the 1998 missile attack on a chemical factory in Sudan. Zimbabwe: The opposition MDC are contesting election results in 40 of the 62 seats won by President Mugabe last month. The MDC party allege intimidation, multiple voting and other irregularities.
IHT: Haiti: Editorial entitled “Backward in Haiti” which reports that the governments refusal to back down from fraudulent election results could have dire consequences for Haiti's impoverished people. The US, EU and Japan are threatening to withhold aid unless President Préval takes action. IMF/Philippines: An increasing budget deficit has led the IMF to delay a decision on standby loans worth $325 million.
Guardian: Debt/Health: Letter from Dr Edwin Borman of the British Medical Association expressing extreme disappointment at the failure of world leaders to turn their promises of debt cancellation into action at the Okinawa summit. He praises the infectious diseases initiative as a valuable contribution to improving global health but stresses that debt cancellation remains a fundamental part of the process. Despite the appalling statistics (eg. one-eighth of the world's population are not expected to survive to the age of forty) many developing countries still spend more on debt repayments than on health and education combined. Strict economic programmes are imposed by the IMF/World Bank but “such demands cannot be reconciled with the drive to reduce poverty and improve health.” Arms trade: Editorial on “policing the arms trade” which describes the difficulty of reconciling international human rights with commercial priorities of the arms industry. Although some worthwhile steps have been taken towards an “ethical” foreign policy, a far more vigorous approach is required with greater transparency. Also a letter from Kate Allen at Amnesty calling for tough new legislation that will deliver on Labour's 1997 manifesto promise. Indonesia/Corruption: Report that government officials have compiled enough evidence to charge former dictator Mr Suharto with corruption. Burma: Front page article linking British company Premier Oil with the use of child labour on its pipeline. Further coverage in G2 section by Maggie O'Kane. Zimbabwe: The Commercial Farmers' Union, representing over 4000 white-owned farms, is bringing a lawsuit against President Mugabe for his role in farm invasions. Cuba: Long-term investment in health care (Cuba has more doctors per capita than any other country) may soon produce a breakthrough in the treatment of cancer.
Morning Star: G8 summit/Debt: Article on page 3 of Monday's paper under the headline “Debt campaigners slam computer sales gimmick.” Criticism of the Information Technology charter launched at the G8 summit with a picture of a Jubilee 2000 “drop the debt” banner and the burning lap-top. Quote from Jubilee 2000 director attacking the high cost of the summit “while the G8 leaders have enjoyed Japan's $750 million hospitality, they have squandered a historic opportunity to cancel the unpayable debts of the poorest countries.”
FT: Okinawa: Report by Gillian Tett which continues the debate over the high cost of the summit. The National Police Agency spent the largest chunk of the total £490 million for the summit while the local economy of the island benefited less than expected. Indonesia: Former President Suharto is to be charged with causing more than $150 million in losses to the state. Zimbabwe: Civil rights groups and labour unions are considering a national strike next week to protest against the state of lawlessness in the country. The opposition MDC is planning court action to declare election results null and void. Cuba: Fidel Castro led a march yesterday of more than one million people to protest at Washington's economic embargo.
Independent: Indonesia: Further coverage of the charges against Suharto for the theft of state funds. Although critics accuse the former president of amassing billions, prosecutors have limited the charges to $150 million to improve the chances of conviction. United Nations: A leaking roof and asbestos lined walls at the UN's building in New York have led the cash-strapped organisation to ask its members for $1 billion for repairs!
IHT: Indonesia: Front page coverage of the corruption case against Suharto.
Times: Corruption: Report accusing Britain of thwarting attempts to stamp out corruption in Pakistan. General Musharraf, the country's military ruler, is attempting to locate the property of wealthy Pakistanis but has received no help from Britain.
The Times: G8/Okinawa: Journalist Lea Paterson says that even by the undistinguished standards of the G8, it is difficult to see the “lobster and caviar” summit held in Okinawa last weekend as anything but a dismal failure. The Japanese summit has made advances on debt relief seem less not more likely. She describes the $15 billion loan package of Japan of laughable insignificance for debt-burdened nations that can ill-afford funding for schools, let alone for schools' computers. The delay in debt relief is due to many factors, some of which are out of the G7's control, namely armed conflicts in the Congo, but foot-dragging by the IMF and World Bank are significant factors and the G7 failed to agree to address the structural shortcomings of the debt-relief scheme. She argues that when G7 countries say they are cancelling 100 per cent of the debt, they should include all debt, both pre and post cut off date debt, that countries such as Nigeria and Haiti should be included in the debt relief scheme and a move toward comprehensive debt cancellation by the international financial institutions could make a real difference. Despite widespread lobbying at all levels of government, the G8 has chosen to ignore these pressing issues—favouring instead what amounts to little more than a subsidy of the Japanese computer industry. Debt campaigners are deeply disappointed, saying the world's poor deserve better. They are right.
FT: ECGD: Ministers yesterday told the Export Credits Guarantee Department to shake up its financial controls and impose stringent environmental and human rights tests on companies seeking project insurance. The review came as a relief to business leaders, who had feared that criticisms of ECGD by MPs and lobby groups might lead ministers to abolish or downgrade its role. ASEAN: The Association of South East Asian Nations has moved to deal more swiftly with regional crises by creating a rapid response team of three foreign ministers to respond to emergencies.
IHT: Côte d'Ivoire: The military rulers of Côte d'Ivoire said on Tuesday that voters had overwhelmingly approved a constitution to return the country to civilian rule. Interior Minister Colonel Mouassi Grena, announcing provisional final results said 86.5 per cent of valid votes backed a new constitution and an accompanying electoral code. UN: UN Secretary General Kofi Annan sets out his aims for the UN Global Compact with business. He says that companies will join with the UN in partnership projects, either at the policy level (for instance, a dialogue role of corporations in zones of conflict) or at the operational level, such as helping African or South Asian villagers link up to the Internet, or strengthening small and medium-sized firms in developing countries.
The Guardian: ECGD/Turkey: The UK government is about to withdraw its support for the Ilisu dam project in Turkey. In a remarkable about turn, ministers have agreed to publish new guidelines for export credits guarantees, taking account of the government's policies of sustainable development, human rights and good governance. UN: A powerful coalition of big businesses, trade unions and environmental and human rights groups meets in New York today to cement the Global Compact for ethical behaviour in business launched last year by Kofi Annan. The UN secretary general has managed to hold together some unlikely allies in the Global Compact. Among the 40 or more big companies that have sent top executives to the meeting are Ericsson of Sweden, Tata of India and multinationals such as BP, Shell, Nike, Rio Tinto and BT. European businesses have responded better than US ones, and Japanese business has not responded at all.
The Independent: ECGD/Turkey: Ministers are planning to refuse financial support for a controversial dam project that would leave 16 000 Turkish Kurds homeless. The cancellation of government backing for the £1.2 billion Ilisu Dam in Turkey will be hailed as a victory by campaigners who said it would breach international law.
FT: Okinawa/debt: FT leader considers the outcome of the G8 summit. Why should the world's poorest countries believe the G8's latest promises to help? After all, earlier pledges have not been fulfilled—for an example, just look at last year's commitment to quick and substantial debt relief. However, the paper thinks that for the first time the need to combat diseases that are decimating Africa is given the priority it deserves. The blueprint outlined in the communiqué sets three targets to be achieved for reducing HIV/Aids, tuberculosis and malaria. They also confirmed the pledge of halving absolute poverty by 2015 and a place in school by then for every child. If these targets are to be met, debt relief is vital. So far, progress is pitifully poor. although the G8 hopes to raise its success rate to 20 countries and $35 billion by the end of the year, that would still be a far cry from the $100 billion that leaders trumpeted at last year's summit in Cologne. ECGD: A shake-up in the controversial Export Credits Guarantee Department which provides insurance for British companies doing business overseas will be announced today by Stephen Byers, the UK trade and industry secretary. Mr Byers will announce strong government backing for the use of taxpayers' money to support British exports, insisting that the ECGD can be made more open, transparent and accountable. The ECGD will be given a “mission statement” requiring it to pay more attention to the needs of smaller companies, sustainable development, and wider government objectives such as helping developing countries. Founded in 1919, the ECGD is the world's oldest export credit agency. ASEAN: At a meeting in Bangkok this week of the 10-member Association of South East Asian Nations North Korea's presence as an observer was seen as positive. But it must be made to understand that there is a limit to economic assistance until it commits to restrain missile development and proliferation. For example if it co-operates perhaps membership in the IMF, WB and Asian Development Bank could be considered. China – An analysis of a growing economy with the structural reforms that will help to sustain it. Gross domestic product grew at 8.2% in the first half of the year. A chief global emerging markets strategist at ABN Amro Asia said, “China is looking better than at any time since the early 1990's”. Letter from the director of de Beers, TWH Capon, giving details of the company's central involvement in seeking solutions to the problem of the illicit diamond trade.
IHT: Côte d'Ivoire – A new constitution is close to being approved ahead of the restoration of civilian rule.
The Times: - Russia – The Swiss authorities are investigating Prime Minister Mikhail Kasyanov's handling of $4.8bn IMF loan money on 14th August 1998. A report said the amount was transferred from New York Federal Reserve to accounts at Republic Bank of New York three days before Russian Central Bank defaulted on most if its short-term debt triggering a crash. Okinawa – In the Commons William Hague referred to the “squandered summit”, criticising the extravagance of the event and spoke of “a feeling that “world leaders had blown it” and disappointment of the lack of progress on debt relief. Charles Kennedy said that there was “pathetically inadequate progress” on debt relief. He wondered if qualifying criteria were too stringent. The PM agreed that “over-stringent hurdles” should not be placed in the way of relief. But added that “It is also important that we have systems of governance there that make it clear than any money we do put into these countries is going to go to the people who need it”.
The Guardian: G8: Journalist Larry Elliott says that the G8 summits have turned into expensive media fests that don't deliver very much. He says it is time to call time on the G8. Zimbabwe: The state news agency has reported that President Mugabe is ready to step down at the 2002.
El Pais: (Saturday 22 July, 2000) The declaration made by the big seven will certainly not satisfy the poorest countries nor NGO's such as Jubilee 2000 which has made debt central to its existence and which had deemed the Cologne initiative less than generous. Jubilee 2000 handed Prime Minister Mori a letter asking for debt cancellation without further delay and less strict conditions. Ann Pettifor is quoted: “A just and political solution must be sought, as well as a new arbitration mechanism between donors and debtors that does not subject countries totally to conditions of a structural adjustment programme imposed by the IMF.” However the G7 reiterated that beneficiaries must submit themselves to IMF strict conditions. She continued to say “It is time that the rich countries stop taking money from the poor countries. We are asking that all this money is put into a fund destined to finance the struggle against fatal diseases especially AIDS and malaria.”
The Guardian: Okinawa/Jubilee 2000: Guardian leader says that the Okinawa summit was a talking and eating shop that showed disdain for the poor. Jubilee 2000, the anti-debt lobby, even scorned the G8 plan to bridge the digital divide on the grounds that providing basics such as housing, electricity and telephones were priorities before talking about computers. The G8 summit cost an astonishing £500 million, a sum big enough to have saved an entire African country. An organisation that spends that much on an event that ignores the desperate plight of the third world is dangerously out of touch with the real needs of the world. Comment and analysis from journalist Larry Elliott on the failure of the G8 summit to deliver debt relief. He says that nothing will happen as long as the G7 continue to talk like giants but act like pygmies. Full page description of the Okinawa summit. Mark Atkinson says that Jubilee 2000 described it as a “squandered opportunity.”
FT: G8 Summit/Okinawa/Debt: Leaders pledge in final communiqué to cut the number of young people infected with HIV by 25 per cent by the year 2010. Healthcare targets and some bilateral moves to promote IT in developing countries left G8 leaders claiming this was the first summit to focus heavily on development issues. However Ann Pettifor of Jubilee 2000 suggested “this will be known as the squandered summit,” as G8 leaders have failed to implement last year's agreement on debt relief. Separate article focuses on Putin's role at the summit and mentions that he did not emphasise to US officials Russia's demands for relief on its Soviet-era debt. Third G8 summit piece on Biotechnology reports that Clinton said the summit had been successful on moving beyond debt to focus on wider development issues such as health and education. Tanzania: Six page FT survey by Mark Turner and Michael Holman. Includes a mention that even HIPC will leave Tanzania short of the resources it needs to tackle poverty and disease. Africa: UNCTAD release a report on capital flows and growth in Africa on Friday 28th July. The report argues for jump-starting African economies with a sustained aid package now.
Wall Street Journal: G8 Summit/Okinawa/Debt: Wide coverage of issues raised at summit. Main article suggests “Putin eclipses Clinton”. Russian debt relief left out of talks. Zimbabwe: Jonathan Stevenson reports that the IMF & World Bank should seek opposition MDC participation with formulating poverty reduction programmes. Aid would strengthen the opposition and hence multiparty democracy. Latin America: Brady bond exchanges are increasingly being used by Latin American countries. Both Brazil and Mexico have recently executed private debt exchanges for Brady Bonds.
Independent: Côte d'Ivoire: Voting on a constitutional referendum began yesterday. It is designed for a return to civilian rule after military coup last December. Voting was extended because of organisational problems. G8: Jubilee 2000 is quoted as naming Okinawa the `squandered summit', Oxfam called it the `lobster and caviar summit'. Ann Pettifor is quoted as saying “The final communiqué offers no response to the public outrage at the G8's failure to act” “They have merely repeated their promises of a year ago. They did not keep their promises then. Why should we believe them now?” The offer of aid to bridge the digital divide was derided by campaigners: Henry Northover of Cafod says “To send out computers into the bush, where there are no telephone lines and no reliable electricity, and limited literacy, does not make much sense".
IHT: G8: Conclusion of summit analysed: list of their international goals from communiqué issued on Sunday. On Debt: `Total debt relief should amount to more than $15bn. Indebted countries need further reforms to reduce poverty, while richer countries should promote lending and borrowing practices to prevent further debt crises.' Leaders vowed to move more quickly in relieving debt, to halve the number of people living in extreme poverty by 2015. Other goals included: World Economy, calling for reforms to expand investment in developing countries: IT, Health, Education, WTO, Environment, Nuclear Safety, Terrorism. In response to the leaders' call for a digital opportunity task force Kwesi Owusu, Jubilee 2000, was quoted as saying “We can't eat Computer” “People are dying”. Côte d'Ivoire: The referendum, held on Sunday and extended to today, on the constitution is set up to exclude Mr Ouattara from presidential elections in September.
The Times:G8/Russia: Despite Mr. Putin stealing the show he did not achieve his objective of having written off $42bn however it will be rescheduled.
Daily Telegraph: G8: G8 leaders confirmed that they wanted 20 out of 41 countries on track for debt relief by the end of 2000.
Sunday 23rd July 2000
Observer: G8 Summit/Debt: Article by Anita Roddick, founder of the Body Shop, entitled “What's half a billion between friends?” Strong criticism of the cost of the Okinawa summit (£500 million) which is enough to repay Gambia's debt twice over.
She suggests that perhaps the cost would have been worth it if some imagination and generosity had been shown by the leaders. Ms. Roddick also questions the democratic legitimacy of the leaders and asks why they have failed to deliver on last year's pledges to cancel $100 billion in unrepayable debt. Do G8 leaders simply not care or are they powerless in the face of the new reality of world economics? Debt/cartoon: Tim Major cartoon depicting G8 leaders around the summit table with Clinton putting his money on a huge Japanese Sumo wrestler facing a thin African figure weighed down by the ball and chain of debt. Tony Blair looking thoughtful.
Sunday Times: Okinawa: Headline of `Britain leads G8 into war on drug barons' also states that the failure of G8 to agree on debt relief and the contrast with sumptuous summit overshadowed other declarations. Quote from Ann Pettifor “The poor can't eat cyber-cake” “You need to start with the basics - food, housing, electricity and telephones. Then you can talk computers.” Leading article suggesting that the presence of a straight talking Clare Short would have helped the summit in Okinawa! Criticism of powerful African elites was required not leaders pontificating on the conditions debt-burdened countries need to meet. However the article goes on to point out that summit efforts to tackle the “digital divide”, and not more basic problems like health, were close to an insult to Third World countries. The price of a decent laptop computer would pay for 2,000 child vaccinations.
Independent on Sunday: G8: leaders agree on solar power plan for world's poor. The G8 initiative to action on health issues (AIDS and TB) will be co-ordinated by the WHO and somewhat redeems the failure to carry out the promises made at last years G8 to bring debt relief. Zimbabwe - a group of farmers went on strike last week and the article says that authorities are aware of the importance of farms to the economy as the country has an acute shortage of foreign exchange. Editorial: Claims that the G8 was an insult to world's poor.
Sunday Telegraph: Debt: Sunday Telegraph leader argues that debt is not the problem. The Kabilas of the world are no better than the Mobutus: there is no generation of better leaders waiting in the wings. In these circumstances, cancellation of debt would be an economic irrelevance. The whole cycle of indebtedness without development would start again.
Sunday Express: Christian Aid: Picture of Christian Aid demonstrators wearing Tony Blair masks in a vigil in Trafalgar Square, calling for debt relief for the poorest countries.
Mail on Sunday: Christian Aid: Picture of Christian Aid campaigners in Brighton campaigning against Third World debt, all wearing Tony Blair masks.
Saturday 22nd July
FT: Africa/G7/debt: FT leader argues that debt relief has lost its momentum. Last year's agreement on debt relief was bold; but its implementation has been cowardly. The Group of Seven countries should make much greater efforts to speed up the process. The fate of some of the world's poorest people depends on it. G8: Further coverage of the G8 summit, where charities called the cost of the summit “obscene.”
Independent: Independent leader says that debt relief is far too urgent a challenge to be left to the bureaucrats. Article says that UK premier Tony Blair airs his frustration over progress on debt relief.
Guardian: Okinawa: Front page coverage of the Okinawa summit, under the headline “Not a crumb from the G7 table.” Jubilee 2000's Ann Pettifor said that “the world's leaders have blown it”. Cafod's Henry Northover said that: “This summit is a £500 million blow out for the world's most powerful men and nothing new for the world's poor.”
Daily Mirror: Daily Mirror Leader describes the cost of the summit as “an obscenity that disgraces the west.”
Daily Telegraph: G8/UK: Tony Blair's plea to speed up debt relief for poor countries fell on deaf ears at the G8 summit.
Daily Express : G8: Further coverage of the extravagance of the summit, described as obscene by Oxfam.
Daily Mail: Debt: Comment by Alex Brummer under the title “World leaders' debt relief plan gets bogged down in Africa.” The fact that Cologne promises of $100 billion of debt relief have not been met is described as “outrageous”. The article mentions the meeting of African leaders ahead of the summit, under the auspices of the Jubilee 2000 campaign, to press for rich nations to fulfil commitments. Praise for Tony Blair but criticism of theG8 and of African leadership.
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