Bulgaria halts Russia’s South Stream gas pipeline project
RT | June 8, 2014
Bulgaria’s prime minister, Plamen Oresharski, has ordered a halt to work on Russia’s South Stream pipeline, on the recommendation of the EU. The decision was announced after his talks with US senators.
“At this time there is a request from the European Commission, after which we’ve suspended the current works, I ordered it,” Oresharski told journalists after meeting with John McCain, Chris Murphy and Ron Johnson during their visit to Bulgaria on Sunday. “Further proceedings will be decided after additional consultations with Brussels.”
McCain, commenting on the situation, said that “Bulgaria should solve the South Stream problems in collaboration with European colleagues,” adding that in the current situation they would want “less Russian involvement” in the project.
Russia’s Energy Ministry said it had not yet received any official notification from Bulgaria on work on the project being suspended.
Earlier this week, EU authorities ordered Bulgaria to suspend construction on its link of the pipeline, which is planned to transport Russian natural gas through the Black Sea to Bulgaria and onward to western Europe. Brussels wants the project frozen, pending a decision on whether it violates the EU competition regulations on a single energy market. It believes South Stream does not comply with the rules prohibiting energy producers from also controlling pipeline access.
The EU is also asking for an investigation into how contracts were awarded for work on the pipeline in Bulgaria. Brussels sent the Bulgarian government a letter of formal notice asking for information, to which Sofia had one month to reply.
Russia’s energy giant Gazprom’s South Stream pipeline requires European approvals as its route would pass through the territory of several EU countries.
In Bulgaria, the ruling Socialists support the South Stream project, while Movement for Rights and Freedom leader Lyutvi Mestan told parliament on June 5 that Bulgaria should defend its strategic interests “in cooperation, not in confrontation” with Europe.
Earlier Serbia has said it has no plans to delay the start of construction of its leg of the South Stream pipeline, scheduled for July. Serbian Energy Minister Aleksandar Antic said that the position was not decisive: “I believe the European Commission and member states will find a solution because this is a European project in the best interests of energy security.”
Hungarian Prime Minister Viktor Orban also said June 5 that the pipeline should be built, as there was no alternative to the project.
Genetic Testing of Citizens Is a Backdoor into Total Population Surveillance by Governments and Companies
By Helen Wallace | GeneWatch UK | June 5, 2014
The new Chief Executive of the National Health Service (NHS) in England, Simon Stevens, was recently reported arguing that the NHS must be transformed to make people’s personal genetic information the basis of their treatments (1).
His proposition is unsurprising since it is in line with the efforts of successive UK governments to build a DNA database in the NHS in England by stealth. In particular, sequencing every baby at birth and storing whole genomes in electronic medical records is a plan backed by Health Secretary Jeremy Hunt (2). The current version of this plan would involve sharing whole or partial DNA sequences (genomes or genotypes) with companies like Google, which would use genetic information and health data to calculate personal risk assessments for feedback to patients (3). Massive investment from taxpayers would be required as part of a public-private partnership that would allow commercial exploitation of the data.
Building a DNA database within the NHS would be a massive waste of public money. But it would also create a system of total surveillance which would enable the government and private companies to track every individual, not to mention their relatives. This is not speculation; as wikileaks revealed, the United States government is already actively collecting DNA samples and biometric data on foreign officials and populations.
Commercial companies wish to exploit genetic information to market products such as drugs and supplements to healthy people, based on genetic risk assessments. If current trends continue, this will harm, not benefit, health: it is personalised marketing not personalised medicine. The potential for misuse is very high. Doctors could be replaced by computer algorithms used to market medication, massively expanding the drug market to include large numbers of healthy people, rather than smaller numbers of (often poorer) people who are sick. There is also the danger that prescribing would be driven by vested interests, rather than medical need: with high financial costs and more harmful side effects. Genetic risk assessments could also be misused, leading to stigma or discrimination, for example by insurers.
Why does the NHS want to collect genetic information?
There is one element of truth to Simon Stevens’ remarks. Some cancer drugs have been successfully tailored to genetic mutations that arise in the cancer tumour. However, attempts to select drugs for people based on the genetic make-up they are born with (their genome or genotype) have largely been a failure. This is because genetic differences only account for a part of individual differences in metabolism. For example, a recent study found that targeting warfarin treatment based on genetic make-up did not improve health outcomes, although this application was regarded as the ‘poster child’ of this approach (4).
Why did it not work? An important misconception, apparently shared by Simon Stevens, is that genes are good predictors of most diseases and adverse drug reactions in most people. However, contrary to misleading claims made to promote the Human Genome Project, this is not true (5). Moreover, even if it were true, there is no evidence that genetic selection of individuals, for example into high risk and low risk groups, improves outcomes or cuts costs. All of which begs the question of the purpose of taking and storing genetic information as a default medical procedure.
The online gene testing company 23andMe, funded by Google, has been forced to withdraw its gene tests from the US market due to failure to prove they can reliably predict individual risks of many common conditions using computer algorithms. The company now wants to target the UK market, where genetic testing is not regulated (6). Patrick Chung, a 23andMe board member and partner at the venture-capital firm NEA told Fast Company (7): “… 23andMe will make money by partnering with countries that rely on a single-payer health system. “Let’s say you genotype everyone in Canada or the United Kingdom or Abu Dhabi,” he says, “and the government is able to identify those segments of the population that are most at risk for heart disease or breast cancer or Parkinson’s. You can target them with preventative messages, make sure they’re examined more frequently, and in the end live healthier lives, and the government will save massive expenses because they halted someone who’s prediabetic from getting diabetes. 23andMe has been in discussion with a bunch of such societies“. Yet there is not a scrap of evidence that this approach is good for health. This is because genomic tests have limited clinical validity or utility; so in reality there is no health benefit to targeting segments of the population in this way.
Genetic testing remains useful to diagnose rare genetic disorders, mainly in babies and young children, and whole genome sequencing has helped to identify new mutations causing these diseases. Rare familial (largely inherited) forms of many common diseases also exist, including breast cancer, but these account for only a small percentage of cases of these conditions.
Use of genetic testing in the NHS should focus on prioritising resources for the limited applications that do work, not on introducing misleading and harmful screening of the whole population and creating unnecessary, expensive databases. Certainly it should not be driven by ulterior commercial and government interests.
References
(1) New NHS boss: service must become world leader in personalised medicine. The Guardian. 4th June 2014. http://www.theguardian.com/society/2014/jun/04/nhs-boss-world-leader-personalised-medicine
(2) Children could have DNA tested at birth. The Telegraph. 8th December 2013. http://www.telegraph.co.uk/health/healthnews/10501788/Children-could-have-DNA-tested-at-birth.html
(3) GeneWatch UK PR: GeneWatch UK report exposes plans to build a DNA database by stealth in the NHS. 23rd May 2013. http://www.genewatch.org/article.shtml?als[cid]=569352&als[itemid]=572536
(4) Pharmacogenomic Warfarin Dosing: Worth the Cost? Medscape. 23rd December 2013. http://www.medscape.com/viewarticle/818088
(5) Human Genetic Predispositions – the hidden politics of genomic science. Bioscience Resource Project. http://www.bioscienceresource.org/resources/human-genetic-predisposition/
(6) Gene startup 23andme casts eyes abroad after U.S. regulatory hurdle. Reuters. 6th May 2014. http://in.reuters.com/article/2014/05/07/23andme-genetictesting-idINL2N0NT05I20140507
(7) Inside 23andMe founder Anne Wojcicki’s $99 DNA Revolution. Fast Company. 14th October 2013. http://www.fastcompany.com/3018598/for-99-this-ceo-can-tell-you-what-might-kill-you-inside-23andme-founder-anne-wojcickis-dna-r
Dr Helen Wallace is Executive Director of GeneWatch UK
No Returning to G8: Russia
The BRICS Post | June 4, 2014
Russia said Wednesday that it was open for cooperation with major Western powers, but ruled out a return to the Group of Eight (G8), made up of the seven most industrialized nations, known as G7, and Russia.
“Such a format does not exist for now,” Kremlin spokesperson Dmitry Peskov told a Russian radio station.
Russia would, however, continue to participate in the Group of 20, which includes the most developed and major developing countries of the world, Peskov said.
Leaders of G7 declared in March that they would boycott the G8 summit in Sochi, where they were scheduled to have met with Russia this week. Instead, they gathered in Brussels for a two-day G7 summit.
The expulsion of Russia from the G8 came three days after Crimea accession to Russia.
Peskov said Russian President Vladimir Putin will not have a bilateral meeting with US President Barack Obama even though both leaders are attending the 70th anniversary of D-Day Landings in France’s Normandy on Friday.
“We are not making such preparations … Participants of war memorial events will stay together, in one group,” Itar-Tass news agency quoted him as saying.
He, however, did not rule out possible brief talks between Putin and Ukrainian President-elect Petro Poroshenko.
The Kremlin earlier confirmed that Putin, on his first visit to a Western country since the start of the Ukraine crisis, would have separate meetings with British Prime Minister David Cameron and German Chancellor Angela Merkel in Normandy.
The US and EU have imposed travel bans and asset freezes on dozens of Russians over what they called Russia’s “meddling” in Ukraine’s affairs.
The European Union, however, would be troubled by Russia’s attempts to veer away from gas exports to the bloc by moving towards energy-hungry China.
Russia has had some success in diverting attention away from the troubling sanctions with the successful negotiations that led to the inking of a massive $400 billion gas deal with China last month and also the signing of the treaty to form the Eurasian Economic Union (EEU) with Russia, Kazakhstan and Belarus, a combined $2.7 trillion economy and vast energy resources.
Brazil: Worker’s Struggle Trumps Sports Spectacle
By James Petras :: 06.03.2014
Introduction
For decades social critics have bemoaned the influence of sports and entertainment spectacles in ‘distracting’ workers from struggling for their class interests. According to these analysts, ‘class consciousness’ was replaced by ‘mass’ consciousness.
They argued that atomized individuals, manipulated by the mass media, were converted into passive consumers who identified with millionaire sports heroes, soap opera protagonists and film celebrities.
The culmination of this ‘mystification’ – mass distraction –were the ‘world championships’ watched by billions around the world and sponsored and financed by billionaire corporations: the World Series (baseball), the World Cup (soccer/futbol), and the Super Bowl (American football).
Today, Brazil is the living refutation of this line of cultural-political analysis. Brazilians have been described as ‘football crazy’. Its teams have won the most number of World Cups. Its players are coveted by the owners of the most important teams in Europe. Its fans are said to “live and die with football” . . . Or so we are told.
Yet it is in Brazil where the biggest protests in the history of the World Cup have taken place. As early as a year before the Games, scheduled for June 2014, there have been mass demonstrations of up to a million Brazilians. In just the last few weeks, strikes by teachers, police, construction workers and municipal employees have proliferated. The myth of the mass media spectacles mesmerizing the masses has been refuted – at least in present-day Brazil.
To understand why the mass spectacle has been a propaganda bust it is essential to understand the political and economic context in which it was launched, as well as the costs and benefits and the tactical planning of popular movements.
The Political and Economic Context: The World Cup and the Olympics
In 2002, the Brazilian Workers Party (PT) candidate Lula DaSilva won the presidential elections. His two terms in office (2003 – 2010) were characterized by a warm embrace of free market capitalism together with populist poverty programs. Aided by large scale in-flows of speculative capital, attracted by high interest rates, and high commodity prices for its agro-mineral exports, Lula launched a massive poverty program providing about $60 a month to 40 million poor Brazilians, who formed part of Lula’s mass electoral base. The Workers Party reduced unemployment, increased wages and supported low-interest consumer loans, stimulating a ‘consumer boom’ that drove the economy forward.
To Lula and his advisers, Brazil was becoming a global power, attracting world-class investors and incorporating the poor into the domestic market.
Lula was hailed as a ‘pragmatic leftist’ by Wall Street and a ‘brilliant statesman’ by the Left!
In line with this grandiose vision (and in response to hoards of presidential flatterers North and South), Lula believed that Brazil’s rise to world prominence required it to ‘host’ the World Cup and the Olympics and he embarked on an aggressive campaign. . . Brazil was chosen.
Lula preened and pontificated: Brazil, as host, would achieve the symbolic recognition and material rewards a global power deserved.
The Rise and Fall of Grand Illusions
The ascent of Brazil was based on foreign flows of capital conditioned by differential (favorable) interest rates. And when rates shifted, the capital flowed out. Brazil’s dependence on high demand for its agro-mineral exports was based on sustained double-digit economic growth in Asia. When China’s economy slowed down, demand and prices fell, and so did Brazil’s export earnings.
The PT’s ‘pragmatism’ meant accepting the existing political, administrative and regulatory structures inherited from the previous neo-liberal regimes. These institutions were permeated by corrupt officials linked to building contractors notorious for cost over-runs and long delays on state contracts.
Moreover, the PT’s ‘pragmatic’ electoral machine was built on kick-backs and bribes. Vast sums were siphoned from public services into private pockets.
Puffed up on his own rhetoric, Lula believed Brazil’s economic emergence on the world stage was a ‘done deal’. He proclaimed that his pharaonic sports complexes – the billions of public money spent on dozens of stadiums and costly infrastructure – would “pay for themselves”.
The Deadly ‘Demonstration Effect’: Social Reality Defeats Global Grandeur
Brazil’s new president, Dilma Rousseff, Lula’ protégé, has allocated billions of reales to finance her predecessor’s massive building projects: stadiums, hotels, highways and airports to accommodate an anticipated flood of overseas soccer fans.
The contrast between the immediate availability of massive amounts of public funds for the World Cup and the perennial lack of money for deteriorating essential public services (transport, schools, hospitals and clinics) has been a huge shock to Brazilians and a provocation to mass action in the streets.
For decades, the majority of Brazilians, who depended on public services for transport, education and medical care, (the upper middle classes can afford private services), were told that “there were no funds”, that “budgets had to be balanced”, that a “budget surplus was needed to meet IMF agreements and to service the debt”.
For years public funds had been siphoned away by corrupt political appointees to pay for electoral campaigns, leading to filthy, overcrowded transport, frequently breaking down, and commuter delays in sweltering buses and long lines at the stations. For decades, schools were in shambles, teacher rushed from school to school to make-up for their miserable minimum-wage salaries leading to low quality education and neglect. Public hospitals were dirty, dangerous and crowded; under-paid doctors frequently took on private patients on the side, and essential medications were scarce in the public hospitals and overpriced in the pharmacies.
The public was outraged by the obscene contrast between the reality of dilapidated clinics with broken windows, overcrowded schools with leaking roofs and unreliable mass transport for the average Brazilian and the huge new stadiums, luxury hotels and airports for wealthy foreign sports fans and visitors.
The public was outraged by the obvious official lies: the claim that there were ‘no funds’ for teachers when billions of Reales were instantly available to construct luxury hotels and fancy stadium box seats for wealthy soccer fans.
The final detonator for mass street protest was the increase in bus and train fares to ‘cover losses’ – after public airports and highways had been sold cheaply to private investors who raised tolls and fees.
The protestors marching against the increased bus and train fares were joined by tens of thousands Brazilians broadly denouncing the Government’s priorities: Billions for the World Cup and crumbs for public health, education, housing and transport!
Oblivious to the popular demands, the government pushed ahead intent on finishing its ‘prestige projects’. Nevertheless, construction of stadiums fell behind schedule because of corruption, incompetence and mismanagement. Building contractors, who were pressured, lowered safety standards and pushed workers harder, leading to an increase in workplace deaths and injury. Construction workers walked out protesting the speed-ups and deterioration of work safety.
The Rousseff regime’s grandiose schemes have provoked a new chain of protests. The Homeless Peoples Movement occupied urban lots near a new World Cup stadium demanding ‘social housing’ for the people instead of new five-star hotels for affluent foreign sports aficionados.
Escalating costs for the sports complexes and increased government expenditures have ignited a wave of trade union strikes to demand higher wages beyond the regime’s targets. Teachers and health workers were joined by factory workers and salaried employees striking in strategic sectors, such as the transport and security services, capable of seriously disrupting the World Cup.
The PT’s embrace of the grandiose sports spectacle, instead of highlighting Brazil’s ‘debut as a global power’, has spotlighted the vast contrast between the affluent and secure ten percent in their luxury condos in Brazil, Miami and Manhattan, with access to high quality private clinics and exclusive private and overseas schools for their offspring, with the mass of average Brazilians, stuck for hours sweating in overcrowded buses, in dingy emergency rooms waiting for mere aspirins from non-existent doctors and in wasting their children’s futures in dilapidated classrooms without adequate, full-time teachers.
Conclusion
The political elite, especially the entourage around the Lula-Rousseff Presidency have fallen victim to their own delusions of popular support. They believed that subsistence pay-offs (food baskets) to the very poor would allow them to spend billions of public money on sports spectacles to entertain and impress the global elite. They believed that the mass of workers would be so enthralled by the prestige of holding the World Cup in Brazil, that they would overlook the great disparity between government expenditures for elite grand spectacles and the absence of support to meet the everyday needs of Brazilian workers.
Even trade unions, seemingly tied to Lula, who bragged of his past leadership of the metal workers, broke ranks when they realized that the ‘money was out there’ – and that the regime, pressured by construction deadlines, could be pressured to raise wages to get the job done.
Make no mistake, Brazilians are sports minded. They avidly follow and cheer their national team. But they are also conscious of their needs. They are not content to passively accept the great social disparities exposed by the current mad scramble to stage the World Cup and Olympics in Brazil. The government’s vast expenditure on the Games has made it clear that Brazil is a rich country with a multitude of social inequalities. They have learned that vast sums are available to improve the basic services of everyday life. They realized that, despite its rhetoric, the ‘Workers Party’ was playing a wasteful prestige game to impress an international capitalist audience. They realized that they have strategic leverage to pressure the government and address some of the inequalities in housing and salaries through mass action. And they have struck. They realize they deserve to enjoy the World Cup in affordable, adequate public housing and travel to work (or to an occasional game) in decent buses and trains. Class consciousness, in the case of Brazil, has trumped the mass spectacle. ‘Bread and circuses’ have given way to mass protests.
NUCLEAR: Obama throws ailing reactors a potential lifeline
By Hannah Northey | Greenwire | June 2, 2014
The Obama administration today threw a potential — and limited — lifeline to the country’s ailing nuclear industry, highlighting the ability of existing reactors to help states curb emissions.
U.S. EPA unveiled a proposal for curbing emissions from existing power plants that pointed to the United States’ fleet of about 100 reactors as playing a critical role — alongside ramping up efficiency and shifting to natural gas and other low-carbon alternatives — in cutting the utility sector’s greenhouse gas emissions by 30 percent compared with 2005 levels by 2030.
At issue is EPA’s finding in the proposal that preventing the closure of “at-risk” existing reactors could avoid up to 300 million metric tons of carbon dioxide during the initial compliance phase of 10 years.
“Policies that encourage development of renewable energy capacity and discourage premature retirement of nuclear capacity could be useful elements of CO2 reduction strategies and are consistent with current industry behavior,” the agency said. “Costs of CO2 reductions achievable through these policies have been estimated in a range from $10 to $40 per metric ton.”
The U.S. nuclear industry is facing a host of challenges, including stiff competition from cheap natural gas, low wholesale energy prices, increasing fixed operation and maintenance costs, and high upfront capital costs for building new units.
EPA noted that units have recently closed in California, Florida and Wisconsin, and additional closures have been announced in Vermont and New Jersey. EPA also noted that the U.S. Energy Information Administration in its most recent annual energy outlook projected that an additional 5.7 gigawatts of capacity — about 6 percent of the country’s current capacity — is at risk of retiring.
EPA pointed to a February 2013 Credit Suisse report that found nuclear plant operators may be experiencing a $6-per-megawatt-hour shortfall in covering operating costs with electricity sales.
“Assuming that such a revenue shortfall is representative of the incentive to retire at-risk nuclear capacity, one can estimate the value of offsetting the revenue loss at these at-risk nuclear units to be approximately $12 to $17 per metric ton of CO2,” the agency wrote. “EPA views this cost as reasonable.”
The agency went on to propose that emission reductions from retaining 6 percent of each state’s historical nuclear capacity should be factored into each state’s goals. EPA also asked for comments on whether the cost of completing new reactors in Georgia, South Carolina and Tennessee should be considered in the states’ compliance plans.
Steve Clemmer, the Union of Concerned Scientists’ director of energy research and analysis, said it’s reasonable for EPA to include existing nuclear generation in the baseline and to credit states for new reactors, adding that the agency’s modeling of the rule doesn’t project the construction of new reactors beyond the five currently being built. But Clemmer questioned EPA’s methodology and finding that 6 percent of the nation’s existing fleet is at-risk economically and applying that percentage equally across the states, noting that factors playing into each plant’s closure varies.
“In states where existing plants aren’t economically vulnerable, they could get a windfall profit by getting extra credit,” he said, noting that the industry already receives generous subsidies.
The EPA proposal is already emboldening the industry’s focus on state compliance plans.
Marv Fertel, the Nuclear Energy Institute’s president and CEO, said in an interview that the U.S. nuclear industry in coming months and years will be pushing states with merchant nuclear plants to value those units for avoiding emissions. States must submit compliance plans by June 30, 2016, or ask for an extension by April 1, 2016. The rule is slated to be finalized next June.
“We have a bunch of states that have renewable portfolio standards; we think you ought to be basically looking at in the state maybe a clean energy standard … and you should be including nuclear as a part of that,” Fertel said.
Fertel said state policies could bolster nuclear units — just as they currently boost wind and solar.
“It would work the same way it’s working for renewables right now. You have to meet the renewable standard, so you’re driving renewables into certain portfolios in the state; this would say that you ought to be looking not only to drive nuclear by either updates or whatever, but value the existing nuclear for the attribute of no emissions, as well as all it does for reliability,” Fertel said.
The current fleet of reactors avoids 600 million metric tons of carbon dioxide each year, equivalent to removing 113 million cars from the road, Fertel added.
The Obama administration in recent months has highlighted the link between climate mitigation and nuclear power. Pete Lyons, the Energy Department’s assistant secretary for nuclear energy, said earlier this year that a rash of premature U.S. reactor closures could threaten the country’s climate goals.
EPA Administrator Gina McCarthy in prepared remarks for an event in Washington, D.C., today placed nuclear power on par with solar and wind, saying states have the opportunity to “shift to ‘no’ carbon sources like nuclear, wind, and solar.” McCarthy went on to say that the nation’s nuclear reactors continue to “supply zero carbon baseload power. Homegrown clean energy is posting record revenues and creating jobs that can’t be shipped overseas.”
The administration earlier this year finalized $6.5 billion worth of loan guarantees for the country’s first U.S. reactors in decades without requiring developers to pay a “credit subsidy fee” — money that protects taxpayers should the developers default (Greenwire, April 21).
The nuclear industry has stepped up its campaign efforts in recent months, with Exelon Corp. taking the lead, partially funding a new front group called Nuclear Matters. The group’s members include former White House climate adviser and former EPA Administrator Carol Browner, former Sens. Evan Bayh (D-Ind.) and Judd Gregg (R-N.H.), former Energy Secretary Spencer Abraham, and former Commerce Secretary and Obama Chief of Staff Bill Daley.
Doug Vine, a senior fellow at the Center for Climate and Energy Solutions (C2ES), said EPA is setting base lines over the country’s total generation mix, and a state’s job becomes more difficult if a reactor retires. Vine said C2ES has seen two approaches that could benefit nuclear plants, including the clean energy standard that Fertel mentioned and carbon pricing.
Kyle Aarons, a senior fellow at C2ES, said the rule could act to incentivize states to keep current reactors running.
“It’s certainly going to change states’ thinking,” Vine said. “It’s going to put a more long-term focus on nuclear.”
China and Russia to establish joint rating agency
RT | June 3, 2014
No more Fitch, Moody’s, or Standard & Poor’s for Russia and China, as they have agreed to establish a rating agency on joint projects, and later, international services, Russian Finance Minister Anton Siluanov said Tuesday.
“The establishment of an independent rating system is being discussed. Many countries would like to have more objectivity in the assessment of rating agencies,” Siluanov said.
“There will be a Russian-Chinese rating agency, which will use the same tools and criteria for assessing countries and regional investments that existing rating agencies use,” the minister said.
UK announces Yuan clearing Bank in London
The BRICS Post | June 2, 2014
The UK government has agreed to establish a yuan-clearing bank in London that would “act as a signal for London’s growing yuan activities”.
Mark Boleat, policy chairman for the City of London Corp said consultations were ongoing for a long time with the People’s Bank of China, Bank of England and many banks in London, and the PBOC has now decided to appoint the clearing bank.
“We assume it’s going to be a Chinese bank, because that’s the way the PBOC does things,” Boleat said in an interview to a Chinese daily in London.
China and the UK had signed an agreement last year to establish a reciprocal 3-year sterling/renminbi (RMB, or Chinese yuan) currency swap line.
UK Chancellor of the Exchequer George Osborne had said earlier this year that a clearing bank was the next logical step to take in building trade ties with China.
“It would be an important further milestone both in the development of the renminbi as a currency of the world’s economic future, but also of London and the U.K. as the western center for renminbi trading,” said Osborne.
China has also signed an agreement with Germany to work on appointing a clearing bank in Frankfurt.
Meanwhile, the UK administration would also allow Chinese banks to open new branches in the country soon.
Previously, Chinese banks, as well as many other international banks, were only allowed to set up subsidiaries, which are subject to the strict capital requirements that apply to Britain’s local banks, hence the lending and financing capacity is proportional to the balance sheet of the subsidiary.
Hungry for land: small farmers feed the world – with less than a quarter of all farmland
GRAIN | May 28, 2014
Governments and international agencies frequently boast that small farmers control the largest share of the world’s agricultural land. When the director general of the United Nations Food and Agriculture Organization inaugurated 2014 as the International Year of Family Farming, he sang the praises of family farmers but didn’t once mention the need for land reform. Instead, he announced that family farms already manage most of the world’s farmland – a whopping 70%, according to his team.
But a new review of the data carried out by GRAIN reveals that the opposite is true. Small farms, which produce most of the world’s food, are currently squeezed onto less than a quarter of the world’s farmland – or less than one fifth if you leave out China and India.
“We are fast losing farms and farmers through the concentration of land into the hands of the rich and powerful,” said Henk Hobbelink, coordinator of GRAIN. “The overwhelming majority of farming families today have less than two hectares to cultivate and that share is shrinking. If we do nothing to reverse this trend, the world will lose its capacity to feed itself.”
Marina Dos Santos of the Coordination of the Brazilian Landless Movement (MST), and of La Via Campesina, states: “Today, the peasantry is criminalised, taken to court and even made to disappear when it comes to the struggle for land. Currently, there are an alarming numbers of deaths that go unpunished. States have created legal concepts such as terrorism and sabotage to intimidate our struggle. Every day we are exposed to systematic expulsion from our land. This affects not only peasants fighting to stay on the land, but also many other small farmers and indigenous peoples who are the target of greedy foreign interests. We want the land in order to live and to produce, as these are our basic rights against land grabbing corporations who seek only speculation and profit.”
“People need to understand that if the current processes of land concentration continue, then no matter how hard-working, efficient and productive they are, small farmers will simply not be able to carry on,” said GRAIN’s Camila Montecinos. “The concentration of fertile agricultural land in fewer and fewer hands is directly related to the increasing number of people going hungry every day.”
GRAIN’s report also provides new data that show that small farmers still provide most of the world’s food, and that they are often much more productive than large corporate farms. If all of Kenya’s farms matched the output of its small farms, the nation’s agricultural productivity would double. In Central America, it would nearly triple. Women are the major food producers, but their role remains unrecorded and marginalised.
The international agencies keep on reminding us that we need to produce more food to feed the growing population. But how much more food could be produced almost immediately if small farmers had access to more land and could work in a supportive policy environment, rather than under the siege conditions they are facing today?
“The vast majority of farms in Zimbabwe belong to small holders and their average farmsize has increased as a result of the Fast Track Land Reform Programme. Small farmers in the country now produce over 90% of diverse agricultural food crops, while they only provided 60-70% of the national food before land redistribution. More women own land in their own right, which is key to food sovereignty everywhere,” said Elizabeth Mpofu, General coordinator of La Via Campesina.
We need to urgently put land back in the hands of small farmers and make the struggle for genuine and comprehensive agrarian reform central to the fight for better food systems. Something peasant organisations and landless people’s movements have long been fighting for.
GRAIN’s new report, Hungry for land: small farmers feed the world with less than a quarter of all farmland provides an in depth review of the data on farm structures and food production worldwide and comes to the following 6 central conclusions:
1. The vast majority of farms in the world today are small and getting smaller
Due to a myriad of forces, average farm sizes have shrunk dramatically over the past decades, particularly in Asia and Africa.
2. Small farms are currently squeezed onto less than a quarter of the world’s farmland
Despite what the UN and others report, small farms occupy less than 25% of the world’s farmland today – just 17%, if we exclude India and China.
3. We’re fast losing farms and farmers in many places, while big farms are getting bigger
One major reason why small farms are disappearing is the rapid growth of monoculture plantations. In the last 50 years, 140 million hectares – well more than all the farmland in China – have been taken over for soybean, oil palm, rapeseed and sugar cane alone.
4. Small farmers continue to be the major food producers in the world
By definition, peasant agriculture prioritises food production for local and national markets as well as for farmers’ own families – not commodities or export crops. GRAIN compiled staggering statistics that show how, even with so little land, small farms produce the bulk of many countries’ food supply.
5. Small farms are technically more productive than big farms
Industrial farms have enormous power, clout and resources, but small farms almost everywhere outperform big farms in terms of productivity. If all of Kenya’s farms matched the output of its small farms, the nation’s agricultural productivity would double. In Central America, it would nearly triple. If Russia’s big farms were as productive as its small ones, output would increase by a factor of six.
6. The majority of small farmers are women, yet their contributions are unrecognised and marginalised
Women’s immense contribution to farming and food production is not captured in official statistics and they are discriminated against when it comes to controlling land in most countries.
The report is accompanied by illustrative maps and a fully-referenced dataset. Available for download at: http://www.grain.org/e/4929.
More on the farmers’ struggle for land: “Land is life! La Via Campesina and the Struggle for Land” at: http://viacampesina.org/downloads/pdf/en/EN-notebook5.pdf.
Contacts
Mr Henk Hobbelink, Spain (EN, ES, NL): +34933011381, henk@grain.org
Ms Camila Montecinos, Chile (EN, ES): +56222224437, camila@grain.org
Ms Elizabeth Mpofu, Zimbabwe (EN): + +2634576221, nkbnyoni@yahoo.co.uk
A new take on land reform in Zimbabwe
IRIN | February 5, 2013
LONDON/HARARE – More than 10 years after the chaotic and often violent farm invasions that accompanied Zimbabwe’s fast-track land reform programme, a new book argues that the redistribution programme has dramatically improved the lives of thousands of smallholder farmers and their families.
Starting in 2000, the government implemented an initiative to acquire 11 million hectares of white-owned farmland and redistribute it on a massive scale; the programme was often carried out in the form of farm invasions led by frustrated war veterans and supporters of President Robert Mugabe. By its conclusion, only 0.4 percent of farmland remained in the hands of white commercial farmers, and smallholder farmers dominated the agricultural sector.
The land reform programme was followed by years of drought, hyperinflation and an economic meltdown.
Thirteen years later and more than 8,000km away, it still raises strong emotions. At a recent event hosted by London’s Chatham House at which authors of the new book, Zimbabwe Takes Back Its Land, defended their work, the hall was packed, and a polite but persistent group of anti-Mugabe protesters occupied the pavement outside.
The book avoids passing judgement on the often violent manner in which the programme was executed. “This is not a book about what might have been, could have been, or should have been,” write authors Joseph Hanlon, Jeanette Manjengwa and Teresa Smart. Instead, it focuses on the results of a study they carried out in Mashonaland, a region of northern Zimbabwe covering three provinces, which found that many of the ‘fast-track’ farmers are faring much better than has been widely assumed.
Despite receiving very little government assistance, “we saw that these farmers had a real passion for farming. We found that farmers are making investments, building houses and barns… and buying farm implements,” said Manjengwa. “They are making the land their own, and they are becoming serious commercial farmers.”
Finding success
When Samson Pfumo, a 52-year-old teacher from Harare, applied for and received a 60-hectare plot in Marondera District through the land redistribution programme, his expectations were low.
“My brother, a war veteran, encouraged me to apply to the government for a piece of land, but I was pessimistic because of the controversy that surrounded the land reform programme,” Pfumo told IRIN. “When I got an offer letter for the plot [in 2005], I only set up a small mud-and-dagga [hut] and hardly visited the farm.”
When the economy started improving in 2009, after the formation of a coalition government, Pfumo developed a keener interest in farming and started raising pigs. A year later, he had 60 pigs, some of which he sold to buy farming implements and to start growing maize for feed.
Today, he has five large pig pens housing more than 300 pigs, which he periodically slaughters for sale, with each pig fetching an average of US$150. He is also rearing about 500 chicks for sale and is considering venturing into tobacco farming after noting that many resettled farmers have been making good profits from the crop.
“I managed to buy a truck to ferry meat to my clients and a luxury car. My two sons are now studying at reputable universities in South Africa because I can afford it, thanks to the piggery project,” said Pfumo, who has left teaching and now lives on the farm with his wife and mother.
Controversial progress
Manjengwa and her colleagues found that even the less ambitious among the new farmers surveyed, who mainly received smaller plots of five or six hectares, had greatly improved their standard of living. After being mostly poor, landless and unemployed prior to resettlement, virtually all of them were able to grow enough food for their families, and to sell the surplus to pay for their children’s school fees. But many were doing much better than that, producing significant quantities of maize, tobacco and other crops for sale, and building up capital in the form of livestock, farm buildings and equipment. They were also starting to employ labour.
The issue of labour is contentious because so many farm workers lost their jobs and their homes when the old white-owned farms were broken up; some are still homeless and unemployed. However, Hanlon, Manjengwa and Smart estimate that around 550,000 family members and 350,000 paid labourers now work full-time on land that previously employed 170,000 workers.
Charles Taffs, president of Zimbabwe’s Commercial Farmers’ Union, reminded those at the meeting at Chatham House that the workers now being hired are not the same ones who were driven off the commercial farms. He also asserted that the figures presented in the study did not add up.
Zimbabwe’s agricultural production experienced a dramatic drop following the upheavals of 2000, but according to the authors, it is now returning to the levels of the 1990s. This is despite the fact that many rely on a much more labour-intensive form of farming than that used by the earlier white commercial farmers.
The authors also point out that, although many of the white-owned commercial farms were efficient and productive, many others were struggling and had far more land than they could use; some of the most fertile land in the country had gone uncultivated. The new smallholders have brought much of that unused land into cultivation.
Dilemma
Manjengwa and her colleagues are not the first to suggest that Zimbabwe’s controversial land reform programme has achieved a number of positive results. A 10-year study of land reform in Masvingo Province, led by Ian Scoones from the Institute of Development Studies at the University of Sussex and published in 2010, challenged a number of the “myths” surrounding fast-track land reform, finding that many of the 400 households sampled were employing labour and expanding their farming operations.
“The suggestion that the fast-track land reform programme was not an unmitigated disaster presents dilemmas about whether to accept this growing body of evidence and risk endorsing the methods used to achieve the asset transfer,” commented Admos Chimhowu of Manchester University’s Institute for Development Policy and Management, who pointed out that neighbouring South Africa has yet to find a solution to its land reform challenges.
Le Pen on Ukraine crisis: US pursuing own interests, not those of EU
RT | June 1, 2014
The EU is responsible for the developments in Ukraine, French right-wing leader Marine Le Pen said in an interview, stressing the bloc should have its own opinion on global events and not slavishly follow the America’s lead.
“The EU added fuel to the fire by offering the partnership to the country where half of the population is looking to the East,” Le Pen told Der Spiegel newspaper.
Le Pen said she supports federalization in crisis-torn Ukraine, where the coup-appointed government has launched a massive military operation in the country’s eastern regions. The offensive has already claimed dozens of lives, both among the militias and local civilians. Schools, a kindergarten and hospitals in several cities have come under fire.
The French leader warned the EU against falling into Washington’s steps, as those have nothing to do with Europe’s interests.
“The United States is trying to expand their influence in the world and first of all in Europe. They are pursuing their own interests, not ours,” Le Pen said.
She went as far as to call the EU “an anti-democratic monster,” where people’s right to self-determination is stolen.
“I want to stop it [the EU] getting fatter, continuing to breathe, touching everything with its paws and reaching into all areas of our legislation with its tentacles,” she said.
Earlier Le Pen repeatedly stated that Russia is being unfairly “demonized” and that the campaign against the Russian political administration has been cooked up at the highest levels of EU leadership, with the implicit support of the US.
“I am surprised a Cold War on Russia has been declared in the European Union,” she said at a meeting with Russia’s State Duma speaker Sergey Naryshkin in April. “It’s not in line with traditional, friendly relations, or with the economic interests of our country or EU countries and harms future relations.”
Le Pen’s National Front far-right party in France has been steadily gaining popularity and scored a triumphant success in the latest EU elections by gaining around 25 percent of the votes.




