Friday, September 28, 2007

Corruption imperils development aid

The Swedish development aid initiative recently presented by Prime Minister Fredrik Reinfeldt to the United Nations triggered both enthusiasm and anxiety, not just among donor countries but with taxpayers in general. Shortly after announcement of the new aid initiative where environment, poverty and human rights would form the guidelines, came a report from an organisation called Transparency International. In its latest annual report, it cited Somalia, Burma and Iraq as the most corrupt countries.

The ten least corrupt countries named are: Denmark, Finland, New Zealand, Sweden, Singapore, Iceland, Netherlands, Switzerland, Canada and Norway. The most corrupt are: Democratic Republic of Congo, Equatorial Guinea, Laos, Afghanistan, Chad, Sudan, Tonga, Uzbekistan, Haiti, Iraq, Burma and Somalia.

Transparency International cited the role of multinational companies in the form of bribes in very poor countries. "Bribe money often comes from multinational companies based in rich countries. It is not acceptable that these companies should view bribes in their export countries as something legitimate," the report said.

The report mentioned 180 countries and areas. War-torn countries such as Somalia, Sudan, Iraq and Afghanistan are ranked as most corrupt. One reason is the on-going reconstruction of infrastructure in these volatile countries. "The most lucrative contracts that many will win, they are prepared to pay for under the table," said the report. At the same time, improvements in the anti- corruption campaign was noted in Namibia, Swaziland, and South Africa.#
(Translated from DN report, 27 Sept. 2007)

Apropos the Swedish aid initiative

Swedish editorial columnist Peter Wolodarski (DN 26.09.07) urged Development Aid Minister Gunilla Carlsson to take a serious look at the latest Transparency International ranking of over 180 countries, in terms of corruption. The rich countries have less corruption problems with bureaucrats accepting under the table bribe money and other abuses of power for personal gain. But there are deviations. Within European Union, the corruption problem still spreads despite strict demands on every EU member states judicial system. Italy has a worse situation compared to Botswana and the United Emirates and even lower down the list are Slovakia, Latvia, Lithuania, Greece, Poland and Bulgaria.

While Sweden can gladden itself with its fourth placement on the list, it ought to worry itself over which countries are on the "worst" list. One finds there several African aid-recipient countries such as Burkina Faso, Mozambique, Rwanda and Uganda which have deeply-rooted corruption problems. Aid money goes to the state treasury.

The basic question remains: What have decades of Swedish development aid achieved?

Wolodarski urged Gunilla Carlsson to consider the Transparency International report before she allows billions of taxpayers' money to disappear into Swiss accounts.#
(Read "Experiencing Africa" in http://ricenroses.blogspot.com)

Monday, September 24, 2007

New Swedish Initiative to Support Environment

The Swedish government will establish an international commission that will environmentally insure the world's development aid efforts. The work commences this autumn and will finish to coincide with Sweden's presidency of the European Union in the second half of 2009.

Today, Monday, Prime Minister Fredrik Reinfeldt has informed the UN chief on the Swedish initiative. Over 70 heads of state are gathered in New York to lay down the general guidelines fore the big UN climate conference in Bali on December. Shortly before his departure, Reinfeldt told Dagens Nyheter about his initiative. "Sweden lies on the front edge as donor country. But ours and others development aid risk being jeopardised by climatic changes. The Commission's work is to find out how one can use development aid to meet climatic threats," said Reinfeldt.

The Commission, as it will be called for short, stands for "The Commission on climate change development" , will be led by Swedish Aid Minister Gunilla Carlsson and will consist of researchers and representatives from both donor and recipient countries. A secretariat will be created in Stockholm with a budget of 10-15 million SEK. The work will go on stream already this autumn and continue for 18 months. The recommendations to the world's donor countries will be the end result, and later to be presented during Sweden's EU presidency in the second half of 2009.

The New York conference theme is "The Future in our Hands," called by UN chief Ban Ki Moon. Representatives from more than 150 countries are gathered to outline the guidelines for the big climate conference in Bali, Indonesia on Dec. 3-14, 2007. At the forthcoming Bali conference, the world leaders are expected to come to arrive at a new international agreement which will take the place of the Kyoto Protocol when it expires on 2012. According to the time frame, the new agreement will be taken up by autumn 2009, when Sweden has the EU Presidency.
(Translated from Dagens Nyheter, Sept. 24, 2007)


China's European Trade Offensive in Kalmar

All road points in the direction of Kalmar in Sweden, when China opens its multi-billion Cebec (China&Europe Business Exhibition Center) project on Friday, Sept. 28. Around 1000 exhibitors are expected to fill a 21,000 exhibition hall at the cost of 3.6 million Swedish crowns per investor-exhibitor. The cost includes installation, apartment and a Swedish share in the multi-billion project. The initiator of this gigantic trade offensive is the Chinese conglomerate Fanerduns Group.

The Cebec exhibition is mainly for wholesalers and buyers and not for the general public and the goods on exhibit will be consumer-directed such as household products, toys, clothes and gift articles, reported Dagens Nyheter. " The business idea is to create a Chinese business center where exhibitors sell goods to buyers and wholesalers. The main part of the company will be Chinese, but it will also include Swedish exhibitors. It will be an international junction between China and Europe, said Mats Nilsson, Marketing Chief for the Fanerduns Group.

The ambitious China project plans to build 300 apartments within the exhibition center plus an added 800 more. Kalmar county is expecting a huge bonanza not only in terms of revenue from visitors and exhibitors but even more significantly, that it would be placed literally on the world map. The small county has an aging population and diminishing employment possibilities. It has invested 9.5 million crowns in marketing promotion but earned 21.6 million in real estate sale to Fanerduns.

But why Kalmar? " We have a large number of environment technical companies in the county. With the help of Invest in Sweden Agency, we are helping them to get into the Chinese market. It led to a cooperation between a Chinese region, which also led to a Chinese investment company establishing itself in Kalmar. During a matchmaking conference between Kalmar and the Chinese company, Fanerduns was also present," explained Mister Jinxing Luo, in his choice between Amsterdam and a place in the southern Baltic region.

The Cebec project had initially run into problems which included Mister Luo's lack of permit to draw his capital out of China; getting work and residence permits for those who would buy into the project, and lack of work safety measures for the Chinese workmen on site. It was reported that the head of Invest in Sweden Agency, Kai Hammerich was in China to clear problems with the Chinese authorities.#

Sunday, September 23, 2007

Sweden's Non-Socialist Alliance launches new budget

The Swedish non-socialist alliance has just celebrated one year in power and presented a new budget that focused on more jobs, lower taxes to wage earners in the service sector and breaking down outsider barriers. At least 1000 Swedish crowns more in the wallet of low wage earners was promised by Prime Minister Fredrik Reinfeldt and Finance Minister Anders Borg at the formal opening of the Swedish parliament Tuesday, Sept. 18th. This was Reinfeldt's second government address re-echoing the Alliance platform that sent them to power last election.

Aside from job creation and the tearing down of outsider-insider barrier, the Reinfeldt government had earlier stated its policy on environment as it decided to join the anti-global warming bandwagon, which among other things, will raise the taxes on petrol and diesel. More importantly, the Alliance intends to take seriously the welfare state's important pillars of security and prosperity. The Socialists have stated the same concerns on many occasions during their long tenure of power. Reinfeldt, however will not allow such monopoly of claim over Sweden's security and prosperity issues.

At the same time that the Alliance government begun a strenuous effort to strengthen the welfare system, it has also sought to rectify the loopholes in the over-exploited welfare system by introducing several measures. For example, reduction of over-dependence in the social insurance system through shortening of sick leave benefits; reduction in unemployment benefits by cutting down on allowable days and payments. Finance Minister Borg had explained that, through these measures and by introducing new work incentives, unemployed people will find it more attractive to work.

The Alliance government has benefited from a strong Swedish economy when it took over power, as public tax revenues soared to new heights. Despite all the efforts to deliver electoral promises, Reinfeldt suffers from low opinion ratings. Swedish media has accused him of sounding more like a Social Democrat. However, it appears that the strategy of the new moderates is to find the right middle road in order to broaden its electoral base and attract supporters from the socialist bloc.It may not be that easy in comparison to other European countries such as Britain's leftist Labour Party or France' rightist new government under Sarkozy. Swedish politics is under the dominant shadow of several Social Democratic leaders and Reinfeldt's Alliance team will have to work harder to claim credit for improving further the Swedish welfare state system.