Archive for category: Government

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The Limitations of U.S. Government on the Economy

Bloomberg recently posted an article on how the unemployment rate has held steady at 6.7 percent while U.S. payrolls have increased, despite more Americans entering the labor force. This means that Americans who had stopped trying to find work are now renewing their job hunt. The limitations of U.S. government have had little to do with this hopeful sign. Here’s why:

1. People Assume The President Has Too Much Power

When it comes to economic policy, aside from tariffs or taxes, the Federal Reserve has the more relevant hand in the interest rates banks charge for loans, savings accounts, capital accounts and stocks.

The Federal Reserve controls the money supply by tinkering with bank reserve ratios or how much currency a bank can hold. The President can affect inflation through drastic action, such as removing the gold standard (see Richard Nixon).

2. People Assume The President Has Too Little Power

The economy is not some ethereal being who lords over all controlling prices and jobs. The economy is the public. It is a market, in which people trade and consume, and income and prices fluctuate accordingly. The Federal Reserve simply reacts to the behavior of people, not the other way around.

It all hinges on something called aggregate demand, or how much the general population wants to consume and buy. The government does best when it does not interfere in markets at all. The Great Recession occurred because too many people put all their eggs in the housing bubble basket. The Great Depression occurred because people stopped consuming, lowering the money supply, and demanded money from banks with insufficient supply. Even now, as the unemployed population rejoins the workforce, they do so because of choice.

3. It all Runs in Cycles

Businesses and the markets they operate in run on cycles. There are booms, recessions and recoveries, and eventually this cycle repeats. It’s the ebb and flow of economics. If anticipated correctly, the cycles could pass through without any serious repercussions. However, the length between these cycles vary so widely, the public, the Federal Reserve, and the government often seem to forget about them. As a result, policies and behaviors are enacted that can prove detrimental once the cycle restarts.

This view of economics not only applies to the United States, but to the world as a whole. The power of the markets should lie with the people, and in a way, always has. Unless the government is linked directly to markets or totalitarianism, its economic power is somewhat limited. The government can guide and suggest movements for businesses, but at the end of the day, its not the government, the Federal Reserve, or the President that determines the one’s livelihood: it’s the individual.

– Matthew Price

Sources: Bloomberg, Daily Infographic
Photo: Housing Works

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Myanmar Government Bans Doctors Without Borders

The Myanmar government banned Doctors Without Borders (DWB) from operating in one of its most impoverished states, following rumors of ethnic tension.

Most of the disenfranchised Muslim minority reside in the Rakhine State. The government accused the DWB of favoring this minority over its rival group, the Rakhine Buddhists. This tension led to widespread violence, killing 100 people and displacing nearly 140,000 others. The government regards Muslims as “interlopers” from Bangladesh, as opposed to a legitimate minority. President Thein Sein granted DWB permission to resume its work in other regions, but continued its ban on operations in Rakhine.

Presidential spokesman Ye Htut accused DWB of “not following their core principle of neutrality and impartiality.”

Rakhine State government accused the NGO of intentionally fueling tension between the minorities, according to Htut. The perception of bias led to large-scale protests in the state capital against DWB.

The organization responded to these accusations in a statement, asserting “services are provided based on medical need only, regardless of ethnicity, religion, or any other factor.”

This January, DWB released a statement contradicting the government on an alleged massacre in Rakhine. This reportedly “triggered” the ban on its operations in the region. The United Nations report the death of more than 40 Rohingya Muslims, and DWB confirmed treating 22 victims. Wounds occurred at the hands of state security forces, yet the government denounced these claims, reporting the death of one police officer.

Following the ban, the Ministry of Health plans to provide health services for the “whole community.” Myanmar President Thein Sein also dispatched the emergency response workers and ambulances to the region, replacing the DWB clinics.

These services cannot match those provided by the NGO. The national health services rank “among the most rudimentary in Asia,” according to the New York Times. The government also confines Muslims to their villages, preventing the group from receiving medical care.

Banning DWB deprives nearly 750,000 people of proper healthcare.

The NGO acted as the largest provider in northern Rakhine, a region largely populated with Muslim Rohingya. It managed five permanent clinics as well as 30 mobile units. Within these clinics, workers operated an intensive feeding center for undernourished children. Medical professionals report diagnosing more than 20 percent with acute malnourishment.

The government ban forced these centers to close, following the removal of DWB.

The organization also served those living in displaced camps outside the state capital, Sittwe. Tuberculosis, a disease endemic to Muslim neighborhood Aung Mingla, threatens the health of displaced Muslims. HIV and malaria also threaten resident health. With limited medical attention, the supplies of medicine continue to dwindle.

The government prevents these patients from leaving the area, surrounding the camp with “barbed-wire security posts and police officers.”

As head of the U.N. Office for the Coordination of Humanitarian Affairs in Myanmar, Mark Cutts expresses concern for the present healthcare shortage. Rather than antagonizing the government, though, the U.N. has chosen “quiet diplomacy.”

For the time, the International Committee of the Red Cross and other organizations can provide care. Myanmar deputy health director Dr. Soe Lwin Nyein plans to accept tuberculosis and HIV medication from DWB. These concessions help patients in the region receive more than the minimum government care, yet negotiations over the medicine distribution appear ongoing.

Cutts plans to coordinate with the government and reinstate DWB “as soon as possible,” protecting the minority from disease. As ethnic tension continues to incite violence, the government banned professionals in the best position to serve its people.

– Ellery Spahr

Sources: CNN, New York Times
Photo: Richard Roche

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UNSC Propose Reforms, Russia Exploits Veto Power

Following landmark political shifts in Ukraine during 2014, the scope of international politics has heavily focused its lens upon tension between Ukraine and Russia, and more recently in the eastern Ukrainian region of Crimea.

Popular uprisings in Ukraine have divided the population between western supporters of the European Union and eastern supporters of Russia. Although the majority of Ukraine’s population wants to be in alignment with the European Union, the region of Crimea contains a significant amount of Ukraine’s Russian-supporting population.

Russia has recently received international attention by its military occupation in the region of Crimea. In addition, the parliament of Crimea has even voted to secede from Ukraine. Critics of Russia, such as President Barack Obama of the United States, argue that Russia’s actions are in violation of Ukraine’s sovereignty and established international laws.

Deputy Secretary General of the UN, Jan Eliasson stressed that meaningful discourse and dialogue ought to be facilitated within the Security Council in order to reach a resolution to alleviate the problems in Ukraine.

The situation in Russia has consistently been a heavily debated topic in the United Nations Security Council (UNSC); however, extensive use of veto power by Russia has hindered the UN Security Council from reaching any substantial resolutions to alleviating the escalating tension between Ukraine and Russia.

The UNSC contains a body of five permanent member states including the United States, the United Kingdom, China, France and Russia. The ability for Russia to block actions that are clearly within the goals and intentions of the UN to “pursue diplomacy, and maintain international peace and security,” and “save succeeding generations from the scourge of war,” provides significant concern for the institutional framework of the UNSC.

Although the United Nations Security Council accounts for the most powerful UN body, Russia’s ability to exploit its status as a permanent member have produced consequences with their violation of international law.

Moreover, while the UNSC remains in suspension of reaching a resolution, the situation in Ukraine is continuing to rapidly escalate. Ukraine’s ambassador to the United Nations pleaded to the UNSC in an emergency session to do everything that is possible to end the violation of national sovereignty and invasion of Crimea by Russian military forces.

Failure to make steps to remedy the conflict between Russia and Ukraine is exemplary of some of the weaknesses inherent to the UNSC. However, it has not been the only case of Russia’s exploitation of its permanent status and veto power in the UNSC. Critics have also argued that failure to resolve the conflict in Syria has also been the result of blocked motions by Russia.

Considering the level of power and influence the UNSC has, problems arise when just one nation has the means to restrict action in addressing pressing international problems. Russia has been quintessential in portraying how special interests can hinder the intentions of international law—which is at the root of why international law may need to be reformed in accommodating 21st century problems.

– Jugal Patel

Sources: Reuters, Al Jazeera, UN News Centre, ABC News
Photo: Rianovosti

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Sustainable Irrigation and Development in India

Experiencing a period of drought on a normal basis before the rainy season, the farmers of India often find themselves at the mercy of nature as well as heavily relying on diesel oil in order to irrigate their farms. Not only that, it is estimated that only 32% of India’s farms are irrigated.

For this reason, over the next five years, the government of India is aiming to reduce this reliance by installing solar energy pumps in rural India. This project is also expected to protect the level of groundwater in the Subcontinent.

The investment needed to initiate this clean and sustainable alternative will cost around $1.6 billion, which will be channeled into replacing non-solar pumps with 26 million solar powered ones to provide access to sufficient electricity to farmers in certain areas of the country wherein electricity resource is still insufficient.

If this project proves to be a success, it will enable India to save $6 billion annually in energy subsidies handed out to farmers, a sum that could go a long way in terms of rural development.

This will also allow farmers—many of whom are poor—to be able to water their plants with no operation cost at all. Thus, this project will not only help the state to save, it will also expand the profit margin of rural farmers of the world’s second most populous country. In certain states, such as Punjab, the state authorities are already helping farmers to acquire necessary materials for the installment of drip-irrigation watering system via subsidization.

The drip-irrigation method, also known as the micro-irrigation method, is an agricultural technique used in order to curb both the use of fertilizer as well as water by trickling water in a very small amount directly to the roots of the plants. Thus, in addition to the solar pump the investment of which will be disseminated countrywide, in the southern state of Kerala, another $62 million is going to be spent to put in place drip-irrigation infrastructure.

Once complete, it will allow more people access to water on their farms regardless of where they are, as water will be dispensed equally throughout a larger area.

With the agricultural sector commanding 51% of India’s total workforce but nevertheless providing India with only 15.7% of the country’s gross domestic product (GDP). This indicates a huge disparity when more than half of the country is in a sector that earns less than a fourth of the total GDP. Thus, with the expanded profit margin and more government’s attention in the sector India and its dynamic economic growth will—in the foreseeable future—be able to lift more people out of poverty.

– Peewara Sapsuwan

Sources: We Demain, Bloomberg, India Text, Irrigation Direct, Bloomberg Sustainability, World Bank
Photo: Ingetje Tadros

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Doctors Without Borders expelled from Myanmar

expelled
Doctors without Borders, also known as Medecins Sans Frontiers, is one of the most respected aid organizations in the world. It was created in 1971 by a group of doctors who desired to have a more direct approach to aiding those in need. It has provided aid to many countries that desperately need it. Doctors without Borders won the Nobel Peace prize in 1999 for its work helping those in war torn countries around the world.

In accepting the award in 1999, former head of the organization Dr. James Orbinski said, “Silence has long been confused with neutrality, and has been presented as a necessary condition for humanitarian action. From its inception, MSF (Medecins Sans Frontiers) was created in opposition to this assumption.”

The situation in Myanmar for the Rohingya could not be more dire and the comments of Orbinski could not be more apt. The Muslim Rohingya are the minority in Myanmar and are one of the most persecuted groups in the world, according to the United Nations.

Doctors Without Borders was an integral part of ensuring that the Rohingya received basic medical care and the services that they desperately need. The situation is more complex however as the government of Myanmar does not recognize the Rohingya as a legitimate ethnic group and persecutes and block their basic human rights at every turn.

Doctors Without Borders has been providing aid to citizens in Myanmar for the last 22 years, according to CNN, and was the largest non-governmental organization in the Rakhine state where the Rohingya live. The group was banned by the Myanmar authority for allegedly showing a “bias” towards the Rohingya who are termed Bengali by the Myanmar government which views them as illegal aliens.

There is speculation by a number of sources that the ban originated because Doctors without Borders put out a statement regarding a massacre of 44 Rohingya by state security officials. The UN and Doctors Without Borders maintain that the Rohingya were targeted by security forces and a mob of local Buddhist.

Myanmar’s government maintains that just one police officer was killed and no other violence occurred.

Doctors Without Borders was operating medical clinics for basic needs as well as HIV/AIDS clinics that were providing treatment to over 30,000 people. The NGO was Myanmar’s largest supplier of HIV medicine and the lack of treatment for this many could and will have devastating consequences in the long term.

Representative Joe Crowley is an outspoken voice on Myanmar and recently tweeted, “It is the responsibility of the Burmese government to protect its civilians. This is deeply troubling.” The Rohingya need more outspoken representatives in international governments around the world if they are to continue to be under the thumb of Myanmar’s oppressive government.

– Arthur Fuller

Sources: ABC, CNN, Doctors Without Borders, Los Angeles Times, Fox
Photo: Apologetics Press

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Chinese Judicial System Investigated for Corruption

Chinese Judicial System
Following ongoing cases of judicial corruption with commutations to sentences, probations and cases of bribery, Chinese authorities have declared they will establish a strict anti-corruption initiative.

A former board chairman of a Chinese beverage company was able to navigate his way through the judicial system and eventually escape overseas. According to Chinese news agencies, Zhang Hai was able to illegally reduce his sentence by nine years. His release came after he was sentenced to 15 years in prison for embezzling the equivalent of $33.8 million in public funds.

There are 24 people altogether, ranging from police officers to prison and court officials, that are now under investigation for their involvement in the case highlighting judicial corruption from multiple fronts. The Commission for Political and Legal Affairs under the China Central Committee reported that criminals were able to use money and power to escape punishment in the Chinese criminal justice system.

The anti-corruption drive aims to strengthen the framework of the judicial system so there is greater accountability and transparency. In fact, a report from the Chinese Academy of Social Sciences revealed that multiple local and regional governments were neglecting the process of publicizing information to allow for transparency in the judiciary.

Cases of corruption within the Chinese judicial system indicate a significant concern for the Chinese people. Similar to the United States judicial system, the Chinese judiciary is only able to operate with the good faith of the people. Problems arise, however, when a lack of transparency obstructs the awareness of corruption. Moreover, in-depth studies of the corruption within the Chinese judicial system indicate that acts of corruption are not rare and isolated occurrences. On the contrary, corruption is embedded within the Chinese judicial system and is even inherently produced by the mechanism of decision-making.

To account for the systemic failures of their judicial system, Chinese authorities plan to take an institutional approach to addressing the problem by amending the system. According to the Central Commission for Discipline Investigation, a total of 182,038 Chinese government officials have been punished for corruption in the last year. Considering the magnitude of the government’s shortcomings in stemming corruption, it is important that authorities begin to seriously address the ongoing problem.

– Jugal Patel

Sources: BBC, Global Times, U.S.-Asia Law Institute
Photo: New York Times

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Ben Affleck DRC Testimony

Ben Affleck
Ben Affleck, co-star of the upcoming film Superman vs. Batman, spent time in Washington, D.C. on February 26 discussing the situation in the Democratic Republic of the Congo (DRC). Using his celebrity and networking super powers,  Affleck has previously launched the Eastern Congo Initiative (ECI) in 2010 and has since helped raise awareness and generate public action against violence in the DRC.

While in D.C. Affleck testified in front of the Senate Foreign Relations Committee and Committee Chairman  Sen. Robert Menéndez (D-N.J.). He began his testimony by acknowledging the significant progress made in the last three months. He also thanked Congress, U.S. President Obama and the State Department for their roles in achieving the surrender of M23, the Congolese Revolutionary Army, which has been violently rebelling against the DRC government.

Affleck emphasized that though progress has been made, it is important to stay on track, and that deviating could risk losing the fruit of their hard diplomatic labor.  The ECI created five key points for Congress to ensure sustainable peace in the country:

  1. Urge U.S. Secretary of State John Kerry to ensure DRC special envoy Russell Feingold has the support needed to successfully achieve his mission
  2. Call on U.S. Embassador to the U.N. Samantha Power to support extending the intervention brigade past its March 31 expiration
  3. Foreign Relations committee hold an oversight hearing to consider a sunset to MONUSCO that compels the DRC to follow through and fully reform its security sector
  4. Have Obama directly engage with DRC President Joseph Kabila to encourage him to make good on his critical commitment to long-overdue security sector reforms by establishing a clearly defined road map
  5. Have the U.S. play a pivotal role and robustly participate in multilateral efforts to ensure that the Congolese holds free, fair and timely local and national elections that respect the Congolese constitution including strict observance of term limits
  6. Call upon USAID to scale up its economic development initiatives in Eastern Congo

Ultimately, the ECI believes the DRC can be revived through enhanced security on one side and injecting small amount of development aid throughout pockets of the community. This will allow the Congolese people to stand on their own and create a market economy, eventually joining the global market.

– Sunny Bhatt

Sources: YouTube, Eastern Congo Initiative
Photo: Ryot.org

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Land Grabbing in Ethiopia Threatens Native Population

land grabbing
Natives of Ethiopia’s Omo River Valley are having their way of life threatened by state-run land grabbing projects designed to develop the area. The valley consists of the traditional lands of the Bodi tribe, which is being forced into government-run villages. These natives have no one to help them; the government’s wants only destroy their land.

Much of the development is being allocated to state-run sugar plantations. In the last 15 months, most of the tribe’s traditional lands have been wiped out. The repercussions of the government’s move will likely affect more than just the 7,000 members of the Bodi tribe.

The development consists of the construction of not only sugar plantations, but a large dam within the Omo River basin. The construction of the dam is projected to be the most devastating of the government projects. It will take the majority of the water present in the river basin with the potential to affect over 500,000 Ethiopians.

No social impact studies were done prior to the implementation of the project, the consent of the tribes occupying the river valley was not obtained and absolutely no one has received any type of compensation for the hardship endured by the forced relocation.

The dam, named Gibe III, will be responsible for adjusting river flows to aid commercial agriculture in the valley. Some believe that this will cause a severe shortage within neighboring bodies of water.

Lake Turkana is situated nearby and is expected to experience a severe drop in its water level. Some are expecting the further development of sugar plantations to result in a water level drop of 16 to 22 meters.

Due to the project’s controversial nature, it has failed to receive funding from many institutions outside of Ethiopia. The World Bank, African Development Bank and the European Investment Bank all decided not to fund the project. However, China’s Industrial and Commercial Bank (ICBC) has come through to provide funds.

Sadly, the development of the Omo River Valley is just a footnote in the long list of human rights abuses the Ethiopian government has inflicted upon its people. The government routinely makes a sham out of its “democracy” with one party winning elections time and time again despite the presence of other political parties.

Criticism of the government is routinely punished. Many journalists have been tossed in jail for simply highlighting government abuses. One journalist, Eskinder Nega, received an 18 year jail sentence for criticizing the government. There are also frequent crackdowns against the Muslim minority who have peacefully protested for the freedom to worship.

There does not seem to be much the average Ethiopian can do to evade the impact of this land grabbing development project. Barring intervention by diplomatic forces outside, the Chinese-backed development project will go on as planned and thousands of innocents will suffer for it.

– Zachary Lindberg

Sources: The Huffington Post, Human Rights Watch
Photo: Any Uak Media

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Poverty and Hunger in Swaziland

hunger in swaziland
Swaziland is considered a low-income to middle-income nation. However, over 50% of the population lives below the national poverty line and makes less than 2 dollars per day.

Weather conditions contribute to the impoverished conditions. Droughts and flooding have caused years of food shortages and an increase in food prices. Maize, which is Swaziland’s main export, exceeded 100,000 tons 10 years ago and is now harvested at a rate of 70,000 tons. Weather, disease and unorganized food management programs are partly to blame for the plummet.

Health complications play a vital role in unsuccessful food productivity. For instance, Swaziland holds the highest rate of HIV/AIDS and Tuberculosis in the world. Nearly half of all women are HIV positive, along with over 80% of tuberculosis patients. With such high prevalence rates of HIV, the number of orphaned children is well over 200,000. Sadly this number will jump by over 50,000 by 2015.

Stunting causes numerous health and work related problems for the population, as well. Roughly 31% of children and over 40% of adults are stunted.

All of these health issues contribute not only to high mortality rates but a poor economy. Reports show adults who are stunted miss more work days and are less productive then non stunted individuals. Stunted individuals have more health problems and are more sickly. Education is also affected by the effects of undernourishment.

Many individuals end up dropping out of school and/or repeat coursework. Therefore workers required to use critical thinking or reasoning skills often provide low productivity. According to “the Cost of Africa Study,” Swaziland loses 783 million per year due to hunger-related illnesses.

Many blame the poverty-related conditions and hunger on the Swaziland government. The king’s lavish lifestyle reportedly depleted funds meant for the starving Swazi people. Reportedly, the king also enjoys 13 palaces, a private jet and luxury cars. He is quoted saying to the starving people that “hard work and prayer” will bring you out of poverty. He says this while the plans to tear down a school for a remolding project for one of his palaces is in the works.

Swaziland is a small landlocked country surrounded by South Africa and Mozambique. Its population, which reigns in at just over one million, is ruled by King Mswati III, one of the last absolute monarchies in the world. Many people believe that hunger, disease and malnutrition would decline if Swaziland became more of a democracy. Mswati does not support democratic transition, however.

– Amy Robinson

Sources: World Food Programme, All Africa, WFP
Photo: Development Diaries

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Death Penalty Holds Firm in Outlier Nations

death penalty
A decreasing number of nations around the world utilize capital punishment, but according to Amnesty International, countries that use the death penalty do so at an “alarming rate.” Between 2010 and 2011, known executions increased from 527 to 676, a 28% rise.

In 2012, the number increased again to 680. There are many executions in nations such as Iran, China and Syria that go unreported. Amnesty International has not published Chinese reported figures on executions since 2009 because the organization declares that the government’s official numbers are exceptionally inaccurate. The organization estimates that annual executions in China are likely to be in the thousands.

Iran faces similar criticism. Amnesty states that it has received “credible reports” of a high volume of clandestine and unconfirmed executions in the country. Adding in these reports would effectively double Iran’s death penalty numbers.

In 2011, only 20 out of 198 countries, or roughly 10%, performed executions, and in 2012 the number of countries that had abolished the death penalty was five times higher than those that had not.

Iran, Saudi Arabia, Iraq and the United States have the highest total number of executions from 2007 to 2012. The Middle East has the highest number of executions of any region (557 executions in six nations.) With the notable exception of the U.S., most countries that still use the death penalty are in the developing world.

The U.S. is the only G7 country where capital punishment is legal.

Methods of executing prisoners vary globally but include lethal injection, beheading, hanging and shooting. In some nations such as Iran, North Korea, Saudi Arabia and Somalia, public executions still occur.

Crimes that are punishable by death also vary but can include drug offenses, rape, sorcery, adultery, “crimes against the state” and murder. Amnesty International also articulates concern over an increase in military courts sentencing people to death in Bahrain, Egypt, Lebanon, the U.S. and other nations.

Japan, India and Pakistan, contrary to global trends, all reinstated the death penalty after long periods of not executing prisoners. In these nations, changes generally occur because different political parties come into power, which leaves sentenced prisoners’ fate to the politics of the moment.

More than half of the world’s nations voted in December 2012 for a United Nations resolution, creating a worldwide moratorium on the death penalty. And the international pressure on countries like the U.S. has intensified.

Due to stated ethical obligations, the European Union banned the export of drugs such as sodium thiopental to the U.S. because they were being used for lethal injections.

Richard Dieter of the Death Penalty Information Center states that the E.U. embargo has stalled, but not ended, executions in the U.S. He asserts, “It has made the states seem somewhat desperate and not in control, putting the death penalty in a negative light, with an uncertain future.”

Amnesty International, Human Rights Watch (HRW) and many other human rights groups oppose the death penalty in all circumstances. HRW states that capital punishment violates people’s innate dignity, is “unique in its cruelty and finality and is “inevitably and universally plagued with arbitrariness, prejudice, and error.”

When asked if he thought the world was closer to abolishing the death penalty, Brian Evans, acting director of Amnesty International’s Death Penalty Abolition Campaign, seemed to remain hopeful, if hesitant.

“They’ll come around when they take a longer look at their death penalties,” Evans states, “but it’ll be a while.”

– Kaylie Cordingley

Sources: National Geographic, The Atlantic, The Huffington Post, The Huffington Post, Amnesty International, Amnesty International, The Guardian, Death Penalty Information Center
Photo: Amnesty International