Monday, October 29, 2007

Translating aid slogans into action

Thirty Swedish newspaper editors published a collective editorial last Sat., 27th of October 2007, urging the government to use its development aid muscle against Eritrea's oppressive treatment of political dissidents. In this particular issue, the release of 43-year old Swedish-Eritrean journalist Dawit Isaak from prison. He was arrested along with several other political dissidents six years ago and has been held without any formal charges.

Swedish newspapers reported that the Reinfeldt non-Socialist alliance is responding "with quiet diplomacy" to the growing collective call to free Dawit Isaak. What this strategy implies is that, Reinfeldt is sending a special envoy to negotiate the release of Isaak, or probably has asked the Eritrean diplomatic head of mission in Stockholm to come to the Swedish Foreign Ministry for an audience with Foreign Minister Carl Bildt.

But what the Swedish editors are asking, is for Reinfeldt to translate development aid slogans on respect for human rights in aid-recipient countries into action, especially in glaringly oppressive situations involving press freedom. Why indeed, is it taking six years to act against this violation that can never be tolerated in a democratic society? And why can't Sweden use its tremendous development aid influence to bring about a democratic change in Eritrea? To continue giving aid to repressive undemocratic regimes is a betrayal of people's trust, here in Sweden, as well as in aid-receiving countries. After all, the reasoning that it is only the poor people who suffer most when aid is cut no longer holds water.

(Join the "Stop development aid to corrupt regimes" movement!)

Wednesday, October 24, 2007

Sweden's 5-point EU presidency agenda

Swedish daily Dagens Nyheter reported today (24 Oct. 2007) Sweden's 5-point agenda during its 2009 European Union presidency, namely: Baltic sea cooperation, climate issues, growth and employment, crime prevention and EU's continued expansion possibilities, says EU Minister Cecilia Malmström. "These are our five main priorities that we will now report to France and Czech Republic," she says.

The French and the Czechs will led the EU during the two half years before Sweden takes over the presidency in the second half of 2009. Together, the three countries will have to decide on a common 18-month program.

Since Sweden assumed the EU presidency for the first time in 2001, conditions have changed radically. EU membership has almost doubled its number, with 27 now as against 15 then. A number of things are brewing in autumn 2009. The EU parliament is newly-elected; the EU Commission will have new commissioners and it means that several of EU's common legal work will be enforced.

At the same time, EU's reformed treaty takes effect. EU will have a new permanent president, as well as a new foreign minister thus in effect limiting the powers of the rotating presidency. According to Malmström, "all these could make things difficult for Sweden to push through its own line." During a six-month presidency, no member country can make fundamental changes in the EU. It was reported earlier that Britain's former PM Tony Blair is a favorite choice for the EU permanent presidency while Swedish Foreign Minister Carl Bildt is seen best as EU's foreign minister.

The preliminary budget for Sweden's half-year presidency is 890 million crowns, which is bigger than 2001 - after all, EU has grown. But lesser than what Finland spent for its presidency.

Thursday, October 18, 2007

Sweden tops in Nordic foreign investment

Global investment frenzy continues to spread. Last year capital investments rose by 38 percent and Sweden stands well with competitors, ranking today as the twelfth biggest investment country, according to UNCTAD's annual report.

Swedish companies ranks well in the development. For instance, it has acted aggressively to become an interesting country for Chinese and Indian investments, says Torbjörn Fredriksson, one of the main authors of the report. During 2006, global investments rose to 8.5 billion Swedish crowns of which 170 billion crowns was placed in Sweden. Old Mutual's acquisition of Swedish insurance company Skandia at the tune of 40 billion crowns rocketed Sweden's position among the top foreign investment countries. The Old Mutual-Skandia affair was the 17th largest deal in 2006.

Sweden is clearly the biggest investment country in the whole Nordic. The overall value of investments in Denmark, Norway and Finland remains 30 percent lower than foreign investments in Sweden. UNCTAD's annual reports shows that China and India are on a vigorous march as foreign investors, followed by United States, Great Britain and France. It is the third year in a row that direct global investments have risen in the world. The reason is the expanding world economy. Corporate profits have increased resulting in higher share prices which in turn raised the value of mergers and acquisitions.

The only dark clouds in the investment horizon that create some uncertainty is how credit worries that shook the world's financial system is going to affect investment enthusiasm." It is partly because no one knows exactly how extensive the credit situation in the USA is, and partly because we don't know how this will affect the investment flow. It will be felt most in mergers and acquisition. It will become harder to finance acquisitions of companies," says Torbjörn Fredriksson."
(Translated from DN Ekonomi, 17 Oct. 2007)

Sunday, October 14, 2007

Mugabe - Sweden and EU's dilemma

Swedish Prime Minister Fredrik Reinfeldt is facing a tough foreign policy choice: to face or boycott Zimbabwe's despot Robert Mugabe in the forthcoming December 8 summit meeting between the European Union and the African Union. The Liberal Party member of the Alliance government, through spokesperson Birgitta Ohlsson is urging Reinfeldt to boycott Mugabe, thereby refusing any legitimacy for his repressive regime. Great Britain's Gordon Brown already announced that he will not come to the summit meeting if Mugabe were to come.

Birgitta Ohlsson in her debate article in Dagen Nyheter (Oct. 13, 2007) states that in the last Swedish elections, the expectation was high for the non-Socialist Alliance to distance itself from repressive dictatorial regimes. In its foreign policy statement, the Alliance said that, " it is necessary to have a more effective instrument against repressive regimes in many parts of the world. Statements of condemnation are not enough to express dissent against regimes such as Zimbabwe, Burma, Cuba and Sudan.It demands a steadfast strategy, where the spread of democracy and the rule of law are the goals. It also demands a united international action, as well as a regional move against repressive regimes."

It is not clear how Reinfeldt is going to face his biggest foreign policy challenge. Is he joining UK's Brown? Which EU members are following suit, is the main question just now. Mugabe has support from his neighbour- African states, so that some EU countries are playing a safe card. It is expected that Mugabe will attend the summit, hence his presence will overshadow more important issues.

A boycott of Mugabe at the EU-African Union summit will send a strong message even to neighbour states like Zambia and South Africa. Sweden and Europe must have a united position on democracy, the rule of law and human rights in all contacts with African states and other regions, the debate article states. And it is absolutely unacceptable to meet Mugabe with warm applause when he addresses the summit meeting. He should instead be arrested when he leaves his country and be made to face the international crime tribunal ICC for crimes against humanity.
(Source: Dagens Nyheter, Oct. 13, 2007)

Thursday, October 4, 2007

SIDA aid projects strongly criticised

The Swedish National Audit Commission has found serious shortcomings in SIDA's aid projects, reported Dagens Nyheter on Oct. 3rd. Swedish development aid channeled through churches, Caritas, Forum Syd and other non-governmental organisations (NGOs) are full with gross errors and irregularities. Huge sums of taxpayers' money disappear without a trace in the handling process, according to the report of the audit commission.

Development aid Minister Gunilla Carlsson said that this was unacceptable. "One is both saddened and angry." Last year, 370 Swedish NGOs with the inclusion of trade unions LO and TCO, administered around 1.3 billion crowns out of SIDA's 2006 year's 15 billion crown aid money. The lack of control over aid money was shown in the Audit Commission's inspection of 15 out of these projects in South Africa, Namibia, Kenya and Tanzania. During four and a-half months, several inspectors from the Audit Commission were out in the field, meeting with small African village aid-recipients, project leaders, participants and auditors.

None of the inspected projects were found faultless. In two-thirds of the projects were found significant errors in the accounting, while three out of four lacked sufficient basis for the Audit Commission to determine which or what the operation was concerned with. One out of three cases showed falsified receipts and attendance lists. In several other cases, it was unsubstantiated high salaries, local costs and consultancy. Half of the projects had not paid the legally-required taxes and employers' fees.

In spite of these anomalies, all the projects were approved by the local auditors as well as the Swedish donor organisations' audit forces from firms such as KPMG and Price Waterhouse. The African auditors have a dependency position vis-a-vis the project leadership, hence the inability to act independently. The Swedes on the other hand, have taken for granted reading the local auditing reports without asking for the projects' accounting documents such as invoices.

Development aid Minister Carlsson stated that she had earlier asked SIDA to do something about the routines for the aid money channeled through the NGOs. " These organisations should have idealism and local commitment, small-scale and presence in the field. And coming from Swedish popular movements who are expected to understand and show respect for taxpayers' money." She has not mentioned any specific measures she would take with respect to the Audit Commission's devastating findings.#