Roads Sector Looks to Curb Fraud, Corruption and Collusion | ||
According to a new World Bank report, “Curbing Fraud, Corruption and Collusion in the Roads Sector,” both developed and developing countries experience collusion and corruption in the roads sector, though the impact on the poor is most profound due to loss of economic and social opportunity. The report draws on lessons from World Bank investigations in the roads sector and experiences of development partners and client countries, in addition to sharing tested practical advice relating to a range of preventive measures. “No country is immune,” said World Bank Integrity Vice President Leonard McCarthy. “The World Bank relies on controls to reduce these forms of misconduct in its projects. We do so through procurement process reviews, financial audits, and field supervision, but we still need a stronger commitment from countries to ensure that no wrongdoing escapes the rule of law. With this report we hope to spark a dialogue with development partners, contractors, client countries and our network of corruption hunters on ways to reduce fraud, corruption, and collusion in the roads sector.” The report was prepared by the Bank’s Integrity Vice Presidency’s Preventive Services Unit, which offers advice and training to Bank staff and client countries on how to prevent fraud and corruption in development projects.
Most Common Problems: Collusion, Contract Fraud The most common forms of wrongdoing in the roads sector are collusion among firms bidding on a project and fraud and corruption in the execution of the resulting contract. As the report notes, chronic bid rigging on roads tenders is a sign the sector has been influenced by cartels. “Cartels are a common phenomenon that requires a collective global enforcement effort to dismantle,” said Integrity Vice Presidency Director of Strategy and Core Services Galina Mikhlin Oliver. “When collusion or corruption is systemic, change requires breaking the cycle of resource abuse by bringing in someone from the outside, e.g. a prosecution authority, anticorruption agency, competition law authority, supreme audit institution, or, in the case of a local government, the national government. If senior officials are involved, introducing an outsider can be particularly challenging,” she added.
Ten Indicators of Collusive Bidding
Procurement Evaluation Among Recommendations Based on practical experience, the report recommends short-term measures, such as an independent procurement evaluator or technical auditor when corruption is deeply ingrained. More drastic measures may also be required, and the report reviews three: the use of bid ceilings, competitive negotiation, and turning procurement over to an independent agent. Another key recommendation is that a country should have laws penalizing bid rigging, market division, and other forms of collusive behavior, along with a commitment and capacity to enforce such laws. Other steps will depend upon market conditions and other country-specific circumstances and risks. “Not all corruption is systemic, and thus not all reforms require such significant steps,” said Richard Messick, senior operations specialist for the Integrity Vice Presidency and author of the report. “In the World Bank-supported Bali Urban Infrastructure Project, a local bidding ring was defeated by circulating tender notices to firms in other provinces. In the Philippines, civil society monitors have uncovered corrupt schemes in a variety of government contracts, and in the second phase of the National Road Improvement and Management Project, civil society groups will monitor all phases of the work.” Report recommendations range from modest changes in procurement procedures to more fundamental shifts where corruption is particularly entrenched. The report cautions that none of these measures is meant to be adopted without a close analysis of market conditions, strength of national institutions, degree of political commitment to reform and country-specific factors. | ||
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Friday, June 3, 2011
Roads Sector Looks to Curb Fraud, Corruption and Collusion
Cities on the Frontline for Climate Action
Cities on the Frontline for Climate Action | ||
C40 and the World Bank form a climate change partnership. From left to right: C40 Chair New York City Mayor Michael R. Bloomberg, President Clinton, Head of the Clinton Climate Initiative, Sao Paulo Mayor Gilberto Kassab, and World Bank Group President Robert B. Zoellick. June 2, 2011
"Cities are at the frontline of the struggle to adapt to climate change and reduce disaster risk. When the world’s largest cities pledge to work together on energy efficiency, clean energy, and adaptation and mitigation strategies – this can be a powerful force for change." Speaking at the global C40 summit of mayors in Sao Paulo, Brazil, World Bank Group President Robert B. Zoellick highlighted findings of a new World Bank study entitled Climate Change, Disaster Risk and the Urban Poor. The study found that one billion poor people living in slums are at especially high risk from the impacts of climate change and natural hazards, because they live on the most vulnerable lands within cities. “Many cities are already building climate change risks into urban planning and city management,” Zoellick said. “But this is a mammoth task that's going to take local, national and international collaboration as well as strong financial support for local governments around the world.” Today, cities are responsible for more than 80 percent of the world’s greenhouse gas emissions. The group of 40 mayors, known as C40, brings together large cities committed to tackling climate change. Together they account for 12 percent of global greenhouse gas emissions. “Cities are growing at a faster rate than ever before and producing the majority of carbon emissions. We are already facing rising sea levels and more extreme hurricanes, droughts, and cyclones,” said President Clinton who heads the Clinton Climate Initiative which partners with the C40 and now with the World Bank. Cities Already Acting on Climate Issues The C40 cities are already acting to combat climate change and have pledged to work together on energy efficiency, clean energy programs, adaptation and mitigation strategies. Sao Paulo, the host city of the C40 summit, wants to reduce greenhouse emissions by 30 percent by 2012 and has started an ambitious waste management program. “The city produces daily 16,000 tons of waste," explained Mayor Gilberto Kassab. "We capture the methane gas produced by the waste and turn it into power.” Other cities are taking similar action. Mexico City was the first city in Latin America to launch a local climate change strategy and Jakarta has started incorporating risk reduction into long-term spatial planning for the city. Dar es Salaam is upgrading slums and providing basic services to poor neighborhoods. Often, the best way to find local solutions is through community participation. That’s how Quelimane in Mozambique, a city prone to flooding, improved water and sanitation conditions for poor residential neighborhoods. In Iliolo province in the Philippines, a community-based project addresses disaster risk management the local level. Bank, C40 Form Partnership A new agreement between the World Bank and the C40, signed during the Sao Paulo summit, will strengthen cooperation between the two organizations focusing on city climate action plans and standardized reporting of city greenhouse gas emissions. Common international metrics will help to better track progress against targets. Equally important, metrics will facilitate cities’ access to private finance that pays for carbon mitigation or supports climate adaptation. “This unique partnership with the World Bank will give C40 cities access to World Bank Group resources, knowledge and capacity building support. In turn this support will help drive local emission cutting actions that will have a significant global impact,” said New York City Mayor and C40 Chair Michael R. Bloomberg. “It is a natural extension of our long-standing relationships with the C40 members, and our commitment to sharing knowledge and learning, as well as combating climate change, that we are deepening our partnership with the C40,” added Zoellick. “Our partnership with the World Bank will provide essential tools to help cities become more sustainable, grow their economies, create jobs, promote energy independence, and ensure a stable future for generations to come, “stressed President Clinton. Underpinning this partnership, the World Bank Group plans to establish a “one-window access” for cities to the Bank’s climate-related capacity building, technical assistance, and available funding programs. Pilot Projects Show Results Working through the World Bank Institute the Bank Group has already partnered with the C40 on carbon finance capacity building in Dar es Salaam, Jakarta, Sao Paulo, and Quezon City. Each city is making progress on developing a Clean Development Mechanism – or CDM – pilot project, for example: waste management in Dar es Salaam, and street lighting in Quezon City. In an effort to better generate and share cutting-edge knowledge in critical areas such as urbanization, green growth, and ICT, the Bank has launched an Urbanization Knowledge Platform which brings together cities, policymakers, researchers, and nongovernmental organizations (NGOs) around transformative issues through knowledge exchange and peer-to-peer learning with climate change and sustainable development as a core pillar of the partnership In Cairo, Morocco, Tunisia, Mexico City, and Bangkok the World Bank Group has helped target and leverage Climate Investment Funds for major energy efficiency, renewable energy, and urban transportation infrastructure that provide services to the poor while reducing greenhouse gas emissions. These include urban mass transit in Mexico City and Cairo and solid waste management and retrofitting buildings for energy efficiency in Bangkok. The C40 summit highlighted cities that are already leading in climate adaptation and mitigation. But, partipants said, cities need help to better understand the sources of available climate finance and other critical support to strengthen their capacity for better planning and to lead frontline action. Contributed by Alexandra Humme, Communications Officer, World Bank Institute | ||
Jute – An Environmental Threat or Opportunity?
Jute – An Environmental Threat or Opportunity?
Jute has earned the title 'The Golden Fiber' thanks to its natural lustre that remains even after processing. The finest Jute is grown on the Indian Subcontinent with India and Bangladesh the major global exporters of both Jute fiber and woven Jute products (Jute Rugs, UK). Jute is 100% bio-degradable and is often considered to be one of the most environmentally friendly crops as it has so many uses, thus reducing the impact on other, less sustainable natural resources. However, it does have some negative environmental impacts as well. The growing awareness about environment around the world in recent years is creating opportunities for the jute industry to expand and contribute positively to sustainable environment.
Earth Day is celebrated on April 22 every year to create awareness on activities leading to sustainable environment. This year different organizations are celebrating this day with different themes – all eventually creating awareness on eco-friendly and green activities that will lead to a low carbon and more sustainable earth. In the eve of the Earth Day 2011, this article sheds light on the jute industry and analyze whether it is an opportunity or threat for the environment.
Environmental Opportunities from Jute
1. Jute fiber is a totally natural biodegradable and compostable fiber obtained from the jute plant and it is therefore an extremely attractive renewable resource for those who are at the forefront of the environmental movement and those who give top priority to environmental and ecological concerns. Reusable jute bags triumph over single use paper and plastic bags. While the embodied energy of jute bags is higher, the fact that many people will use a single jute bag over several years results in it being the most eco-friendly (Krohn, David 2010). Jute bags can be recycled. When they have served their purpose, they rot and decay or can be easily burnt off. The production of polypropylene fiber, the main synthetic competitor of jute, requires 10-20 times more energy consumption than does the production of jute. So jute is an eco-friendly agricultural product.
2. The defoliated jute leaves have fertilizer value and enriches the soil nutrients. Jute leaves are used as vegetables and have nutritional as well as medicinal values. Jute sticks are used as fuel and to build shelters in jute growing rural areas. This has helped reduce the use of wood in these applications (International Jute Study Group, 2003).
3. The production flow of jute agriculture involves: sowing, weeding/thinning, harvesting, defoliation, retting, fiber extraction, washing and drying (International Jute Study Group, 2003). But only a small percentage of the farmers use seed treatment, fertilizers and herbicides/pesticides, which makes the processes before harvesting environmentally sound.
4. Jute contains cellulose like any other raw materials used for paper pulp, thus making it more biological efficient than that of wood plant. Experiments to convert jute fiber and whole jute plant into paper pulp have successfully produced good quality pulp and paper (International Jute Study Group, 2003. The growing demand of pulp and paper worldwide on a continuous basis and increase of public awareness on environmental issues have created conditions to check depletion of forest resources through using jute/kenaf for producing pulp and paper. This increasing demand for paper has led to excessive deforestation in both developed and developing countries. The restoration of the forest resources is difficult because of the relatively long growing cycle of trees. This situation will increase the competitiveness of jute as a raw material for paper pulp and the paper industry. Furthermore, using jute for pulp and paper has many advantages, like using less chemicals than in wood pulping, like chlorine; consuming less energy than traditional wood pulp due to the low lignin content of jute; using treated wastewater from jute paper mills for irrigation, etc.
5. Many of the farmers that grow jute do not use chemicals, and cultivate it in areas where it grows naturally. It is rare that a tree is cut down to plant jute in its place, and there is little chemical load placed on the soil by growing the fibers for jute bags (Jute Bags or Cotton Bags-Buyer’s Guide, January 2010).
6. Jute cleans the air. Studies indicate that, one hectare of jute plants can consume up to 15 tons of carbon dioxide and release 11 tons of oxygen during the jute growing season (about 100 days) (Natural Environment, 2008).
7. Jute Geotextile (JGT) has proven very effective at addressing various soil-related issues in the civil engineering industry (Natural Environment, 2008). JGT can be used to assist with:
* a. Protection of slopes in road and railway embankments, bridge approaches, terraces in hilly terrains, etc.
* Stabilization of sand dunes, mine spoils, etc.
* Promotion of quick vegetation in areas denuded by things like cyclones, earthquakes, landslides, etc.
* Stabilization of waste dumps.
* Prevention of reflection cracks.
* Protection of riverbanks.
* Strengthening of roads.
* Filtration.
The benefits of Jute Geotextile over other geotextiles include:
* Price - cheaper than other geotextiles (synthetic or natural)
* Easy availability and transportation
* Superior drapability • Greater moisture retention capacity
Environmental Threats From Jute
1. For the production of jute, farmers use the time-consuming conventional retting process in the ponds and rivers which hampers the quality of the jute fiber as well as pollutes the environment with large amount of biomasses decomposing in the stagnant water, thus causing environmental pollution. However, the pollution of water by retting is transitory in nature, because in a warm climate the polluted water returns to its normal condition after 30-45 days. In addition, there is an alternative method named as Ribbon retting method. It is much more convenient compared to the conventional retting process because, ribbon retting takes only ¼ the time and requires much less water (Katalyst, August 2010). In Ribbon retting, ribbons are stripped out from the stem of mature jute plants, coiled and allowed to ret under water bodies - which farmers can create artificially by digging a hole and filling it with small amount of water. This also reduces environmental pollution to a great extent. The ribbon retting method saved the farmers the cost of transporting jute to nearby water bodies as well as allowed increased quantity of jute to be retted at a time than the conventional method. So, ribbon retting is a great promise to produce high quality jute fiber in one hand and a more eco-friendly measure on the other.)
2. Processes of jute fiber extraction and washing have drawn some concerns regarding solid residue and gaseous emissions that arise from such processes (Katalyst, August 2010). Complaints about the unpleasant smell during retting are quite common. The temporary gaseous emissions and unpleasant smell do not involve any non-reversible hazard as compared to some other industries.
From the above analysis, it can be said that producing jute is proven to be very cost-effective and environment friendly. The opportunities from producing jute can have a huge positive impact on the environment. The environmental threats from producing jute can be overcome and thus turned into opportunities. Investing in jute industry can be one of the major steps towards green investment.
References
Earth Day is celebrated on April 22 every year to create awareness on activities leading to sustainable environment. This year different organizations are celebrating this day with different themes – all eventually creating awareness on eco-friendly and green activities that will lead to a low carbon and more sustainable earth. In the eve of the Earth Day 2011, this article sheds light on the jute industry and analyze whether it is an opportunity or threat for the environment.
Environmental Opportunities from Jute
1. Jute fiber is a totally natural biodegradable and compostable fiber obtained from the jute plant and it is therefore an extremely attractive renewable resource for those who are at the forefront of the environmental movement and those who give top priority to environmental and ecological concerns. Reusable jute bags triumph over single use paper and plastic bags. While the embodied energy of jute bags is higher, the fact that many people will use a single jute bag over several years results in it being the most eco-friendly (Krohn, David 2010). Jute bags can be recycled. When they have served their purpose, they rot and decay or can be easily burnt off. The production of polypropylene fiber, the main synthetic competitor of jute, requires 10-20 times more energy consumption than does the production of jute. So jute is an eco-friendly agricultural product.
2. The defoliated jute leaves have fertilizer value and enriches the soil nutrients. Jute leaves are used as vegetables and have nutritional as well as medicinal values. Jute sticks are used as fuel and to build shelters in jute growing rural areas. This has helped reduce the use of wood in these applications (International Jute Study Group, 2003).
3. The production flow of jute agriculture involves: sowing, weeding/thinning, harvesting, defoliation, retting, fiber extraction, washing and drying (International Jute Study Group, 2003). But only a small percentage of the farmers use seed treatment, fertilizers and herbicides/pesticides, which makes the processes before harvesting environmentally sound.
4. Jute contains cellulose like any other raw materials used for paper pulp, thus making it more biological efficient than that of wood plant. Experiments to convert jute fiber and whole jute plant into paper pulp have successfully produced good quality pulp and paper (International Jute Study Group, 2003. The growing demand of pulp and paper worldwide on a continuous basis and increase of public awareness on environmental issues have created conditions to check depletion of forest resources through using jute/kenaf for producing pulp and paper. This increasing demand for paper has led to excessive deforestation in both developed and developing countries. The restoration of the forest resources is difficult because of the relatively long growing cycle of trees. This situation will increase the competitiveness of jute as a raw material for paper pulp and the paper industry. Furthermore, using jute for pulp and paper has many advantages, like using less chemicals than in wood pulping, like chlorine; consuming less energy than traditional wood pulp due to the low lignin content of jute; using treated wastewater from jute paper mills for irrigation, etc.
5. Many of the farmers that grow jute do not use chemicals, and cultivate it in areas where it grows naturally. It is rare that a tree is cut down to plant jute in its place, and there is little chemical load placed on the soil by growing the fibers for jute bags (Jute Bags or Cotton Bags-Buyer’s Guide, January 2010).
6. Jute cleans the air. Studies indicate that, one hectare of jute plants can consume up to 15 tons of carbon dioxide and release 11 tons of oxygen during the jute growing season (about 100 days) (Natural Environment, 2008).
7. Jute Geotextile (JGT) has proven very effective at addressing various soil-related issues in the civil engineering industry (Natural Environment, 2008). JGT can be used to assist with:
* a. Protection of slopes in road and railway embankments, bridge approaches, terraces in hilly terrains, etc.

* Stabilization of sand dunes, mine spoils, etc.
* Promotion of quick vegetation in areas denuded by things like cyclones, earthquakes, landslides, etc.
* Stabilization of waste dumps.
* Prevention of reflection cracks.
* Protection of riverbanks.
* Strengthening of roads.
* Filtration.
The benefits of Jute Geotextile over other geotextiles include:
* Price - cheaper than other geotextiles (synthetic or natural)
* Easy availability and transportation
* Superior drapability • Greater moisture retention capacity
Environmental Threats From Jute
1. For the production of jute, farmers use the time-consuming conventional retting process in the ponds and rivers which hampers the quality of the jute fiber as well as pollutes the environment with large amount of biomasses decomposing in the stagnant water, thus causing environmental pollution. However, the pollution of water by retting is transitory in nature, because in a warm climate the polluted water returns to its normal condition after 30-45 days. In addition, there is an alternative method named as Ribbon retting method. It is much more convenient compared to the conventional retting process because, ribbon retting takes only ¼ the time and requires much less water (Katalyst, August 2010). In Ribbon retting, ribbons are stripped out from the stem of mature jute plants, coiled and allowed to ret under water bodies - which farmers can create artificially by digging a hole and filling it with small amount of water. This also reduces environmental pollution to a great extent. The ribbon retting method saved the farmers the cost of transporting jute to nearby water bodies as well as allowed increased quantity of jute to be retted at a time than the conventional method. So, ribbon retting is a great promise to produce high quality jute fiber in one hand and a more eco-friendly measure on the other.)
2. Processes of jute fiber extraction and washing have drawn some concerns regarding solid residue and gaseous emissions that arise from such processes (Katalyst, August 2010). Complaints about the unpleasant smell during retting are quite common. The temporary gaseous emissions and unpleasant smell do not involve any non-reversible hazard as compared to some other industries.
From the above analysis, it can be said that producing jute is proven to be very cost-effective and environment friendly. The opportunities from producing jute can have a huge positive impact on the environment. The environmental threats from producing jute can be overcome and thus turned into opportunities. Investing in jute industry can be one of the major steps towards green investment.
References
- Jute Rugs, viewed 12 April 2011, www.jute-rugs.co.uk
- International Jute Study Group, 2003, viewed 12 April 2011, jute.org
- Natural Environment Blog, “The Environmental Benefits of Jute”, 2008, viewed 12 April 2011, www.natural-environment.com
- Natural Environment Blog, “The Exciting Potential of Jute”, 2008, viewed 12 April 2011, www.natural-environment.com
- Krohn, David, August 2010, Viewed 12 April 2011, www.davidkrohn.net
- Williamson, Graham, “Jute Bag or Cotton Bags – Buyer’s Guide”, January 2010, viewed 20 April 2011,www.articlesbase.com
- Katalyst, August 2010, viewed 20 April 2011, www.katalyst.com.bd
Slave to Fashion
Slave to Fashion
Safety and Health Violations in Garment Factories
April 28 marks the World Day for Safety and Health at Work. The International Labor Organization (ILO) celebrates this day to promote the prevention of occupational accidents and diseases globally. April 28th is also recognized by the trade union movement as International Commemoration Day (ICD) for Dead and Injured. It is an international day of remembrance and action for workers killed, disabled, injured, or made unwell by their work.
As we mark this day, I thought it would be appropriate to pay tribute to garment workers around the world who are exposed to appalling working conditions that put them at risk of being killed, disabled, injured or made unwell to make products that the workers themselves can never afford to buy. Yet big retail companies that are indirectly employing these workers are raking in huge amounts of profit without any legal obligation to ensure the safety of workers.
Safety Violations
Accounts of excessive working hours, forced overtime, lack of job security, extremely low wages, sexual harassment, and poor working conditions are common in the garment sector of developing countries. Even though all these issues are interlinked, for the purpose of observing World Day for Safety and
Health, this blog will focus solely on the working conditions of garment workers. On March 25th 1911, New York City saw its worst industrial disaster. 146 garment workers were unable to escape and died as a result of poor safety regulations. The factory had no fire alarms, and many exits were locked from the outside and the only fire escape collapsed. Now, 100 years later as most clothing manufacturing has moved to developing countries, it is not unusual to hear about garment workers dying in fires because of lack of safety regulations. In Bangladesh garment factories have been devastated by a series of fires and building collapses that have killed hundreds of workers. The estimated 3,600 garment factories in Bangladesh have inexcusable safety conditions. Most factories are overcrowded and do not have functioning fire extinguishers and fire blankets. It is a common practice for factory owners to lock fire exits and use them for storage. Factories rarely train staff in fire safety and many factories do not have smoke detectors, emergency lights, or public announcement systems. They are also notorious for faulty electric wires and switchboards. While the giant retailers and factory owners can pass off these factory fires as mere accidents the fact remains that these accidents are preventable. The complete negligence of health and safety in many factories is a clear violation of human rights.
Health Violations
Many of the pressing health issues stem from working long hours and having to face the pressure of meeting production quot
So what is the excuse for the awful working conditions that these workers are exposed to? Now the garment industry is a tricky topic, while there are strong movements against these type of factories, prominent economists like Jeffery Sachs when asked whether there are too many sweatshops have said ‘‘My concern is not that there are too many sweatshops but that there are too few,'' (http://www.nytimes.com/1997/06/22/weekinreview/in-principle-a-case-for-more-sweatshops.html) Rapid expansion of the garment sector within the last two decades has given a boost to job creation in the organized sector and has expanded export earnings for many countries. Also, the majority of garment workers are female, which signifies unprecedented entry of female workers in the manufacturing sector. It provides an alternative to the restricted village life for many women in Asia. In one study 35 women in
Bangladesh expressed their willingness to stay and work in factories in Dhaka despite not being happy with their working and living conditions simply because it is better than the alternative.(http://devnet.anu.edu.au/online%20versions%20pdfs/51/FLDabsar51.pdf).
Undoubtedly there have been some positive changes but the question is does the positive outweigh the negative? For pro sweatshop critics the argument is that even though wages and working conditions may appear inferior by the standard of developed nations, they are actually improvements over what the people in developing countries had before. At least the workers have some form of employment and sweatshops provide an alternative to other dangerous jobs like prostitution, begging, or stone crushing. The case most cited for this argument is that after The Child Labor Deterrence Act was introduced in 1993, an estimated 50,000 children were dismissed from their garment job in Asia. Many resorted to jobs such as ‘stone crushing’, ‘street hustling’ and ‘prostitution’. UNICEF’s 1997 State of the World’s Children Study found these jobs to be ‘more hazardous and exploitive than garment production’
Undoubtedly there have been some positive changes but the question is does the positive outweigh the negative? For pro sweatshop critics the argument is that even though wages and working conditions may appear inferior by the standard of developed nations, they are actually improvements over what the people in developing countries had before. At least the workers have some form of employment and sweatshops provide an alternative to other dangerous jobs like prostitution, begging, or stone crushing. The case most cited for this argument is that after The Child Labor Deterrence Act was introduced in 1993, an estimated 50,000 children were dismissed from their garment job in Asia. Many resorted to jobs such as ‘stone crushing’, ‘street hustling’ and ‘prostitution’. UNICEF’s 1997 State of the World’s Children Study found these jobs to be ‘more hazardous and exploitive than garment production’
Safety and health in the workplace should be a right and not a privilege and many workers in developing countries are being denied their right while huge amounts of profit are being made at their expense. This year, on the World Day for Safety and Health I will like to pay homage to all these workers.
Some Anti Sweatshop Campaigns:
Oxfam: www.oxfam.org
Clean Clothes Campaign: www.cleanclothes.org
NOSWEAT: www.nosweatapparel.com
An Ethical Industry: fashioninganethicalindustry.org
Behind the Label: www.behindthelabel.org
United Students Against Sweatshops (USAS): usas.org/
Some Anti Sweatshop Campaigns:
Oxfam: www.oxfam.org
Clean Clothes Campaign: www.cleanclothes.org
NOSWEAT: www.nosweatapparel.com
An Ethical Industry: fashioninganethicalindustry.org
Behind the Label: www.behindthelabel.org
United Students Against Sweatshops (USAS): usas.org/
China’s foreign aid white paper: a victory for the aid transparency movement?
China’s foreign aid white paper: a victory for the aid transparency movement?
Chinese foreign aid has long been a subject of scrutiny and controversy. It doesn’t easily fit into the OECD’s definition of Official Development Assistance (ODA). Much is financed through the China Eximbank in the form of concessional loans that directly support Chinese economic interests, and carried out by embassies and consulates rather than development agencies. Most importantly, project-level data on Chinese aid is essentially non-existent (or, if it exists, the government is not sharing it with the rest of the world). As a result, scholars, policy-makers, and aid workers have agonized over the true nature of Chinese development assistance – whether it really helps recipient nations develop, or simply feeds China’sappetite for extractive resources (read Deb Brautigam’s blog for more discussion of the myths and realities behind Chinese aid).
AidData’s experience exemplifies the difficulty of locating comprehensive data on Chinese aid flows. By scraping the China Commerce Yearbook and the Almanac of China’s Foreign Economic Relations & Trade, published annually by China’s Ministry of Commerce, BYU professor Dan Nielson and his students were able to obtain project-level data for “comprehensive projects completed” between 1990 and 2005 (see a summary of the project and download the data here). However, a significant amount of project-level data is missing, including commitment amounts for most projects.
This is why I was surprised when, on Thursday, April 21st, the People’s Republic of China (PRC) provided a rare glimpse into the mechanics and history of its aid program, releasing a white paper summarizing its foreign aid activities since 1950. Why now? What is the motivation behind this sudden effort to 'set the record straight'?
One possible explanation is that the PRC “is learning the limitations of noninterference." Stephanie Kleine-Ahlbrandt and Andrew Small argue in a 2008 Foreign Affairs article that as its international diaspora and foreign investments have expanded, “China has had to devise a more sophisticated approach to protecting its assets and its citizens abroad,” and has therefore taken a more active role in denouncing states that violate human rights (e.g. North Korea, Sudan, and Burma). Esther Pan of the Council on Foreign Relations also calls attention to the fact that the Chinese government has invested more heavily in its soft power, i.e. its ability to influence “by persuasion and appeal rather than by threats or military force.”
The effectiveness of China's foreign assistance is likely correlated with the country’s ability to exercise soft power. When critics charge that Chinese contractors do “shoddy work," or that Chinese aid robs developing countries of natural resources without providing jobs in return, the country's reputation suffers.
A quick scan of the PRC's white paper suggests that the government is mindful of these criticisms and wants to reframe the discussion. It draws attention to the mutually beneficial nature of its support and positions China as a “friend” of developing nations that engages in "South-South cooperation." According to the paper, China’s inexpensive loans have helped nations “build up their self-development capacity” and “foster local personnel and technical forces.” The paper also tries to lower expectations by emphasizing the fact that it remains a developing country with constrained resources and significant domestic challenges: “Over the years, while focusing on its own development, China has been providing aid to the best of its ability to other developing countries with economic difficulties.”
China’s white paper also attempts to dispel myths about the type of aid it actually provides. For example, whereas China’s investment in energy and resource extraction has drawn considerable criticism, the paper asserts that the majority of Chinese concessional loans (61%) support “economic infrastructure,” and only 8.9% of its loans support “energy and resources development.” China has also funded clean energy initiatives and trained over 1,400 people in developing countries on how to develop and use renewable resources.
According to the white paper, the majority of China’s development financing through concessional loans has targeted economic infrastructure, as opposed to energy and resources development (see page 5).
The one criticism the paper fails to address, as the Guardian points out, is the Chinese government’s lack of transparency. The paper provides some aggregate funding statistics, but it does not provide the granular project-level detail necessary to monitor the nature of the country’s specific development assistance activities. Nor does it define how China categorizes aid projects, which makes it virtually impossible to know what types of activities fall under each sector indicated in the report. To verify any data presented in the white paper, one would need detailed sector descriptions and project documents that clearly describe goals, activities funded, financial details, financing and implementing organizations, and other fields for each project (Publish What You Fund uses seven AidData fields to assess the quality of donor data – see page 67 of their 2010 Aid Transparency Assessment).
Releasing the project-level data that would enable independent evaluators to assess the nature and impact of Chinese foreign assistance would be a great next step.
Peter Bergen is a former AidData Research Assistant. He graduated from the College of William and Mary with a BA in international relations in May 2010.
Braised Duck
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