Friday, July 25, 2008

Rabble also has an article on the link between cellphones and the crisis in the DR Congo (Democratic Republic of Congo, but referred to as "Congo" in the article). It shows the link that Canada, including 2 former Prime Ministers, have with this exploitative relationship. For those who don't know about the Congo crisis, here's a good little primer from Democracy Now.
Rabble news features an interesting conversation with the author of Planet of slums on the socioeconomic disparities and other details of Dubai, the extravagant world-famous city in the UAE known for its plethora of ambitious architectural and economic projects. Yet the excessively grand schemes of this opulent city also contains a significant undercurrent of shame and exploitation, as the author Mike Davis talks about. Dubai mainly relies on a huge number of migrant foreign laborers, who actually outnumber the locals, from South Asian countries like India and Pakistan to build its buildings and perform menial tasks like domestic labor and waitering. Many of these workers experience poor living conditions like cramped quarters, long hours of work, dangerous work environments and low pay. This has led to outbreaks of unrest and attempts at reforms by the authorities but which are not adequate.
Davis also tells how on a broader regional plane, while Dubai's extravagance might make it a juicy target for being in the midst of much poverty and conflict, it protects itself through its connections with major regional players like Iran and the US.

So hopefully the next time you hear about or see Dubai and its grand projects in the news, consider the vast socio-economic inequalities behind their constructions and how superficial that grandeur is.

Wednesday, July 23, 2008

The poorest billionaires in the world

This article shows how low the economy has sank in Zimbabwe. Inflation has been sky-high for a long time now but it seems new heights are always being reached.
According to the IRIN article:
"A loaf of bread costs Z$100 billion at the official rate, a kilogramme of meat Z$450 billion, (around US$5.60) and a half-litre sachet of milk sells for Z$200 billion (about US$2.50)."


Just a few days ago in July 19, Zimbabwe's Central Bank released $100 billion notes, actually "bearer checks". This is a rapid increase from earlier this year in January, when it issued bills in denominations of $1 million, $5 million, and $10 million -- and then in May, bills from $25 million and $50 million up to $25 billion and $50 billion.

The IRIN article also says that the official inflation rate is at 2.2 million percent and rising every day. What this means is that money is constantly depreciating so that what may cost, say $10 million today may cost $15 million Friday. The casual labourer quoted in the article tells of having to line up outside the bank for 4 hours to withdraw $100 billion, the daily limit imposed by Zimbabwe's Reserve Bank, and that he will have to come back the next day to do the same because of fears the money will depreciate even more, not to mention the fact that he will need more money because the $100 billion withdrawn will not last more than a few days.

Friday, July 18, 2008

A look at India-China relations.

This Taiwan Journal article offers an interesting commentary on India-China relations, painting a not so rosy picture despite increased ties between the two. The article instead claims that on different issues like India's push for a permanent seat on the UN Security Council, border and territorial negotiations and most importantly, a proposal by India for an "open and inclusive security architecture" in Asia, China has not responded warmly. The article also describes the alarming incursion by Chinese troops into Indian territory, such as this one.
One would think that if these two Asian heavyweights were ever to truly cooperate in any sort of vital issue, they could indeed wield some substantial influence on the world stage. Instead there's still lingering suspicions between the two despite growing trade.
The Toronto Star's Haroon Siddiqui writes about the huge cost to Iraq that has been caused by the American occupation and which America needs to take full responsibility for solving.
"An age-old civilization and its remnants have been destroyed.

A whole generation of Iraqi civilians has been killed, maimed and uprooted. Between 80,000 and 1.2 million are dead (depending on which estimate you go by). More than 4 million have been made refugees – half forced into exile in Jordan and Syria, and the other half internally uprooted."

This just has to be the largest catastrophe in the world in this decade, surpassing those of even the Darfur genocide, Afghanistan (which also involves the US) and even the great natural disasters like the Asian tsunami. The DR Congo might be the only one to rival it though.

The Kielburger brothers always write interesting and informative articles on many international social issues. Here they've written something different from their regular articles, as their latest article is about the relationship between China and the US which binds them more tighter than many would think. Specifically this is referring to their economic trade relations in which China has a huge surplus with the US, exporting more to the US than importing, while also buying up a lot of American treasury securities.
As the authors note:

"China is now so deeply invested in U.S. securities, any disruption to the value of the dollar would be a serious blow to its own reserves. Reliant as they are on the U.S. market for goods, the Chinese are forced to buy up new securities as soon as they're issued to prevent their currency, the yuan, from appreciating against the U.S. dollar. Neither country holds a significant advantage over the other."

The thing is not only does China depend on the US to buy a lot of its products, but it also needs the US to keep a strong economy and currency in order for its own vast holdings of American treasuries to maintain their value, to the point of propping up the US currency by continuously buying up American treasury securities. In essence, the US has little leverage over China.

Of course, China does realise the vulnerability of their situation and raised some concerns by suggesting selling off some of their US dollars last year which they later retracted. They have also tried to invest in more US-dollar non-treasury investments such as Morgan Stanley.
See this table for the list of foreign countries who own American treasury securities. As you can see, China is by far the number two owner though it is relatively a little behind Japan. Keep in mind Japan's economy is greater than China's.

Saturday, July 12, 2008

The Economist has a decent article on the recent direct flights between China and Taiwan which clearly describes the intricacies in the visits by Chinese tourists which outline the delicate relationship between the two "Chinas". For instance, the flights still have to fly through Hong Kong airspace rather than directly between Taiwan and China "because Taiwan's military is on constant alert for an air attack from the mainland, and analysts say it cannot afford to let civilian flights clutter cross-straits radars."
There seems to be a lot of goodwill and hope surrounding these visits by politicians and leaders of both sides, as these visits are a potential significant step to improving and closer relations. One wonders how the majority of Taiwanese feel.

Friday, July 04, 2008

Straight out of some James Bond or Tom Clancy Rainbow six novel, longtime hostage and cause celebre Ingrid Betancourt was rescued from captivity in a bloodless operation carried out Wednesday involving some admirable ingenuity, trickery and betrayal. In all seriousness, this was great news, not just because of her status and length captivity but also the fact no blood was shed.

The background of this event is the recent declining fortune of FARC-Revolutionary Armed Forces of Colombia, the leftist rebel army that has been fighting a longstanding guerilla war against the Colombian state for over 40 years. Over the past year, they've suffered some defeats and setbacks including the assasination of top leaders, the capture of key documents which almost precipitated a Colombia-Venezuela war a few months ago, and numerous defections. The US government has helped Colombia a lot with confronting the FARC, providing over $4 billion in military aid (Plan Colombia) since 2000 such as training and providing equipment. While this aid is ostensibly for anti-narcotic actions on cocaine, which the FARC also derives a significant income from, much of the military aid goes towards anti-FARC military operations.
The FARC has its origins in the aftermath of concentrated state campaigns against Marxist enclaves in the sixties but it seems over time their goals have shifted from Marxist revolutionary social change to greed, trafficking and wanton thuggery. Newsweek has a recent piece on this decline of the FARC to "a bunch of crooks".

This does not mean they are wholly responsible for this enduring civil conflict because right-wing paramilitaries and even the state have also engaged in oppressive and violent acts as well.
Global exchange has a bunch of articles critical towards the role of the US and Colombian state in the civil conflict. But in all essence, this is a guerilla movement who has lost its purpose, fighting for no one but itself.

Tuesday, July 01, 2008

McClatchy has a good article on the human toll in Zimbabwe and the probable reasons for Mugabe's resurgence through using violence and intimidation. The main reason- the hardliner former "freedom fighters" from Zimbabwe's independence struggles in the seventies and eighties who still retain a lot of power in Mugabe's ZANU-PF ruling party and the armed forces. Former ZANU-PF high-ranker and presidential contender Simba Makoni also lost substantial support because of these hardliners. This makes a lot of sense because in reality, oppressive regimes are often more than just the work and actions of one man and Zimbabwe is no different. As notorious and infamous as Mugabe is, he alone cannot be held responsible for Zimbabwe's failings and oppression. Kind of similar with the US where George W. despite the widespread amount of loathing for him, also cannot be solely blamed for all America's actions under his rule.