Swedish car rescue plan in a dilemma

Swedish Industry Minister Maud Olofsson will be facing a tough parliamentary question session on Tuesday, Dec. 16, when the opposition Socialist Party demands to hear a clearer verdict on the bailout of SEK28 billion earlier promised to the car manufacturing industry. It is a question of whether the coalition government is going to pursue said bailout or is simply misleading the industry and the Swedish people.

"If it shows that the government's crisis package is not actually SEK28 billion as promised, then it is serious", says Tomas Eneroth, spokesman for the Socialist Party Industry Committee. He wants to see the bailout papers on Olofsson's table.

Last Thursday, Dec. 11 the coalition government through Finance Minister Anders Borg and Industry Minister Olofsson, presented the rescue package for the car industry which consists of a SEK28 billion financial injection.
The billions from the European Investment Bank (EIB) can not be loaned directly to either SaaB or Volvo since they are both owned by the American company Ford or GM, and not either to Opel in Germany. The problem is that they are under a common financial system with their respective US owners.

"It would mean that if (these car companies) were given the rescue money at this time and GM or Ford declares bankruptcy, the money would simply disappear into a black hole, without a cent left. This is a huge amount for Europe and even if both US companies were to survive, they could announce that they will develop new car technologies in Detroit, for which European taxpayers will not be too happy to get involved in, much less pay for," said Lars Holmquist, European car sub-contractor.

Holmquist believes that the Swedish government would want to build a new company, something of a Swedish car development type, with the state as primary owner and thereafter place the multi-billion rescue money into this new organisation designed to develop new technologies such as petrol-saving engines and hybrids. Then later, Saab and Volvo could be allowed to use these technologies to meet the present demand for environment-friendly vehicles. In this way, the Americans could not lay hands on the rescue money but could later avail of the results of the research.

As far as the EIB rescue money is concerned, the SEK20 billion is earmarked for the European car industry for 2009. The money will not be paid during a one year term but within a period of four years up to 2012. It is hoped that with several car manufacturers needing financial help, the amount promised by EIB will be increased accordingly.
(Translated and edited from Dagens Nyheter, 14 Dec. 2008)

Reduced aid can lead to war and terrorism, Ahtisaari warns

Nobel Peace Prize winner for 2008 Martti Ahtisaari of Finland reminded aid donors not to reduce or hold back on their commitment to development assistance because of the current economic crisis because this could lead to war and terrorism. He had a clear message to say after he received his peace award: "All conflicts can be resolved."

"We should not accept excuses from holders of political power. Peace is a question of will," he was quoted as saying. He warned at the same time that peace negotiators like him take too much attention instead of focusing on the parties in conflict. He says that this creates a wrong picture that peace comes from outside instead of inside.

He stressed that poverty and inequality are reasons for war and terrorism, reminding the rich donor countries that the current economic crisis should not be made an excuse for reducing aid to poor countries that are already suffering from hard climate changes and reduced world trade. " Hundreds of young people risk losing their jobs," he said. "If we don't do anything, this could create criminality, instability and war when all these young people lose hope."

To the US President-elect Barack Obama, he admonished prioritizing the resolution of the Middle East conflict.
"The international community's credibility is under challenge. We cannot pretend year after year that something is being done about the situation. We must have results."

Ahtisaari's accomplishments as peace negotiator are particularly significant in the following: In Kosovo, along with Russia and USA, succeeded with a peace agreement in 1999 that ended civil strife; In Aceh province in Indonesia, where a bloody conflict for independence raged for centuries, a peace agreement was signed in 2005; and Namibia in southern Africa, which after years of quiet negotiations got its independence in 1990. # (Translated and edited from Dagens Nyheter, 11 dec. 2008)

No to clusterbombs, the Swedish dilemma

Over 100 countries - among them Sweden have signed in Oslo yesterday, an international agreement which forbids the use of clusterbombs. The so-called bombs contain minor bombs which explode close to the ground and covers a much larger area.

The convention which forbids the use, development and trading of clusterbombs was taken up in Dublin, Ireland in May last year. However, countries like the USA, Russia, China and Israel have not accepted the ban. Even Finland has not agreed to it.

Sweden has not shown the inclination to accept the prohibition when Norway brought it up two years ago. For one thing, Sweden has a type of clusterbomb, the Bomb Capsule 90, which is part of the Jas Gripen equipment. It weighs 600 kilos, inclusive of 118 kilo of explosive material which has a gliding, flying effect towards the target where around 72 minor bombs detonate when released.

However, in the middle of November Swedish Prime Minister Fredrik Reinfeldt stated that even Sweden will sign the agreement. He said that the decision is in line with Sweden's disarmament ambitions and on ban against anti-personnel mines.

The use of clusterbombs has been criticised for its military strength - that they could effectively strike at troop formations over a large territory - which is also its weakness. They are not precision weapons and they can hit both civilians and military targets. The wars in Kosovo, Iraq and Afghanistan have shown that not only personnel mines but even clusterbombs contributed to a huge humanitarian problem than other conventional weapons. It is also common that some minor boms do not explode when they spread, which leaves blind bombs that are more powerful and deadlier than landmines.

For Sweden, it would mean discontinuity in the use of Bomb capsule 90 and reduced effectivity of the Jas Gripen against any armed attacks against the country. It means that the Swedish defense must replace it with another kind of weapon to complement Jas Gripen's capacity.

In order to become legally binding, the international agreement requires the ratification by 30 countries. " As Chairman of the European Union in Autumn 2009, it is important that Sweden prioritises and with credibility expand the coverage of the agreement. We therefore expect us in the government already in spring 2009, to present a proposal to the parliament for a Swedish ratification," said Anna Ek, chairperson of the Swedish Peace.# (Edited and translated from Dagen Nyheter, 4 dec. 2008)

EU's stimulant package hard to implement

A stimulant package of two thousand billion euro is recommended by the EU Commisssion to be able to get Europe out of the economic crisis. It includes among others the lowering of Vat for certain services and tax reduction for low-income earners.

"We find ourselves in an exceptional crisis period," says EU Commission Chairman Jose Manuel Barroso when he presented the economic package of 200 billion euro to help Europe out of the economic stagnation. But it is not the EU Commission sittting at the driver's seat responsible for the EU member state's economic recovery.

A large part of the package which consists of 1.5 percent of EU's BNP rests on the 27 EU member-countries. They are the ones, through different types of financial measures, that will inject the necessary adrenalin in the economy with 170 billion euro, while EU's common budget stands for 30 billion euro is earmarked for different loans, previously-assigned payment of fund and investments in common EU projects.

The EU Commission presented some kind of a la carte menu of suggestions that the member states can use to get their economies moving. They include both tax reduction and increased fees. Some countries could decrease tax for low-income earners, lower Vat to 15 percent ( in Sweden it is 25%) and added support for the production of environment-friendly cars as well as incentives to the construction and infrastructure sector.

The decisions of the EU-member countries will be taken up on Dec. 11-12 when they meet in Brussels. Several countries already set in motion several financial measures in their respective budgets as well as other urgent measures immediately after the crisis outbreak. Sweden says that it has done its own homework in the new budget. "It is in line with what we do and are prepared for more should the need arises," says Swedish Labour Minister Sven Otto Littorin.# (Translated and edited from DN, 27 Nov. 2008)

No to Jas Gripen, Yes to Nordic defense cooperation

Norway's response to the Swedish defense minister's debate article published in Dagens Nyheter Thursday, Nov. 20th where it was alluded that the former would buy SAAB's Jas Gripen came a day after. The Norwegian government prefers the American Joint Strike Fighter, a decision that instantly raised eyebrows among Swedish politicians and airplane experts.

The four Nordic countries that have agreed to strengthen border security cooperation have chosen separate ways when it came to fighting planes: Finland has the heavy US F-18; Sweden, its light Jas Gripen; Denmark the older version of US F-16 and now Norway will buy the new American Joint Strike Fighter.

What has caused the eyebrow raising among Swedish experts is the fact that the price Norway has to pay for the US fighter planes is not commercially reasonable, reports said. According to the Defense Security Cooperation Agency, DSCA in its September account, the 48 JSF planes would have cost around 58 billion Norwegian crowns and not NOK18 billion as now reported. It can only be deduced that the current state of US economy has plunged the price of its JSF.

Swedish experts say that the total cost for life maintenance of JSF planes, or what is referred to as life cycle cost, is three times the cost of Jas Gripen. Even Norwegian military experts in its cost analysis say that, " the cost picture for all identifiable cost elements is 20 to 30 billion higher for JSF (compared to Jas Gripen) over a 30-period life perspective"."

Sweden drops third in world gender equality rank

The World Economic Forum recently released its Gender Gap Index report where it shows that Sweden has dropped its predominant lead position to third place after Norway and Finland. The investigative reporting started in 2006 and Sweden had been at the top of then list as the most gender equal in the world until this year.

However, Sweden still rates high in several areas such as the number of women in the parliament, literacy and education. That it fell to third place has been attributed to the number of women ministers and the estimated income of women. "Equal wage for equal work" finds Sweden on the 35th rank, and especially the fact that there has never been any female head of government. Some 39 countries have or has women presidents/prime ministers and rank better than Sweden.

The following countries rank high in the Gender Gap Index: Iceland (4th); New Zealand (5th); Philippines(6th); Denmark (8th); Netherlands(12th); and Lithuania(13th).

Swedish gender Equality Minister Nyamko Sabuni-who refused to be interviewed by Dagens Nyheter, stated that " exactly as it was last year, the Nordic countries rank at the top with small variations, indicating that Sweden's gender equality work is stable. She alluded to gender quotas being used in companies in Norway.
" Here in Sweden, we have used another way through reforms in order to create better conditions for women instead of legislation." In the case of Finland, the improvement in its gender equalisation is credited to the positive development in education and health, and that it has a woman president, Tarja Halonen.# (Edited and translated from Dagens Nyheter.)

OECD sees economic recovery by 2010

The Western world's economy is heading for the worst recession since the oil crisis of 1970s, according to OECD's latest forecasts. The leading economies are definitely in a state of recession. The situation was already bad in summer with high raw material prices, a correction of the property market and financial turbulence. When the Lehman Brothers declared bankruptcy, the real financial crisis broke out. It is the reason behind the prevailing recession, said Jörgen Elmeskov who is responsible for the report " Economic Outlook" released Thursday.

According to "Economic Outlook" the growth forecast for next year remains down. In June, OECD predicted that USA's economy will grow by 1.1 percent in 2009, and the Euro area by 1.4 percent. The growth figures as they stand now are on minus with USA shrinking close to 1 percent and the Euro area by half percent.

Earlier in the week, OECD presented a summary of important recession indicators for the world's leading economies, which are all on a downturn direction. OECD economist Ronny Nilsson said: " Now the recession in certain countries is so weak that one must go back 30 years in time to find the same level. There is no upward turn in sight." Unemployment among OECD member- states is around 6.9 percent next year and 7.2 percent in 2010. The Euro area will be worst affected with 7.4 percent this year and 8.6 percent next year.

However prices will decline and inflation could be lower than feared. The OECD economists urged more measures needed to stabilise the financial markets, and that such measures should be done through international cooperation.# (Translated and edited from Dagens Nyheter, Nov. 14, 2008)

Sweden reinforces troops in Afghanistan

Sweden is sending an additional 100 soldiers to northern Afghanistan as well as increasing its development aid, the government decided Thursday. But the Swedish troop lacks heavy fighting vehicles.

At present there are 400 Swedish soldiers in the NATO-led Isaf forces. Together with Finland, they are respon- sible for the security of a large portion of northern Afghanistan. The number of Swedish soldiers will increase to 500 in 2009 and a transport plane will be moved from Dubai to Afghanistan. Swedish military advisers will be put at the disposal of the Afghan army. There will also be ambulance helicopters even if the delivery is delayed.

The Swedish International Development Authority (SIDA) has received a new mandate to implement a new aid strategy and the assistance to Afghanistan which stands at 365 million SEK in 2008 will be raised to 500 million SEK yearly.

Swedish Foreign Minister Carl Bildt described the international community's huge undertaking in the country in order to insure the democratic election, strengthen the police force and anti-corruption work as well as improve the regional dialogue with neighbouring countries such as Pakistan and Iran. There are critics in Sweden, who pointed out that the Americans have not done much to help the civilian population's development. "Afghanistan is one of the world's poorest countries and has gone through three decades of war. The seven-years of state-building is not enough," said Carl Bildt.# (Edited and translated from Dagens Nyheter, Nov. 14, 2008)

Sweden agrees to re-open talks with Russia

The European Union (EU) will resume negotiations for a partnership agreement with Russia and Sweden has agreed to the move. This is despite the fact that the latter has not fulfilled all the conditions in the peace agreement that came after the war in Georgia. EU believes it could achieve better influence, although Georgia is not happy with EU's decision. All the EU member-states except Lithuania said yes to the resumption of talks. Georgia says this is a mistake and that history will vindicate who is right and wrong.

Sweden and Great Britain, both of whom were earlier sceptical, agreed to open the doors to new talks, as long as it was made clear that relations with Russia is no longer as it was before. "Russia's disproportionate actions in summer against Georgia - a clear violation of international right - continues to cast a shadow over EU's relationship with Russia," writes Swedish and British foreign ministers Carl Bildt and David Milliband in a joint letter.

Both pointed out that Russian troops have not returned to the positions they had before the invasion and that there are still Russian soldiers in the strategic areas in Akhalgori and Kodoridal in Abchazien. Carl Bildt had been one of the strongest critic against Russia but he had gone along with the re-opening of talks. He defended his position by saying that the mandate for re-negotiation has become tougher. The initiators for the resumption of talks were the French EU presidency and the EU Commission.

Carl Bildt remains sceptical that any changes can come any time soon. " I have no illusions that the Russians will change in the shortest time perspective. This will stay in the agenda for a long time." The partnership agreement involves among other things trade, politics, economy and energy questions. The resumption of talks is expected to begin at the end of this month.# (Edited and translated from Dagens Nyheter, 11 Nov.)

USA and Europe meet to face economic crises

Amidst the euphoria of Barack Obama's election as new president of United States comes a sobering call for immediate transition in the White House, to institute measures needed to stabilise the economy and for the European Union leaders to formulate a common position.

The economic crisis characterised Barack Obama's presidential campaign and will determine his manoeuvrings room during a greater part of his presidential mandate, wrote Dagens Nyheter(http://www.dn.se/) in its editorial today. In order to cope with the acute economic crises, he will have to allow the budget deficit to swell. The new stimulant package could be the biggest in modern times and possibilities for reform limited.

Obama will have to caution the Americans not to consume beyond their means and sanitise the budget. There is the danger that he might not be able to control expenditures in the light of expectations for "change" which had become his campaign slogan. Her may succumb to populist demands by a Democratic majority in the US Congress, such as trade protection to shield the US domestic economy.

On the other side of the Atlantic, the European Union heads -of -state are meeting to try to formulate a common position before the international economic meeting in Washington on Nov. 15 this year. The objective of the Washington meeting is to create guidelines for a new formulation of regulation and supervision of the financial markets and watch over institutions like the International Monetary Fund and the World Bank. It is popularly known as the Bretton Woods II, named after the big conference in Bretton Woods , USA in July 1944 after the World War II when international economic cooperation took form.

French President Nicolas Sarkozy is one of the initiators and host of the meeting, in competition with Britain's Prime Minister Gordon Brown on who can best save Europe and the rest of the world from a financial meltdown. The French wants to see better regulation of the finance markets, although obviously not over-regulated to prevent efficiency. When the finance ministers met earlier, countries like the United Kingdom, Sweden and Finland criticised the French proposal for being too detailed and centralised.# (Edited translation made from DN's editorial)

Barack Obama is new President of United States

United States has made history today with the election of African-American Senator Barack Obama to the highest office, the Presidency. The voter turnout was unprecedented, the election process was smooth and the result was uncontested. Republican candidate John McCain conceded and urged the Americans to work together to support the new president-elect.

At no other time in America's history, will a new president face tremendous problems as will Barack Obama. United States' economy has plunged to the bottom and it will take tremendous efforts to create stability and confidence not only domestically, but more importantly abroad with countries that are closely dependent on the US economy. In his maiden speech as newly elected president, Obama told the Americans that it will take time, maybe not a year or two, or even one mandate to bring America back to a position of economic dominance.

Even more urgent on the new president's agenda will be measures taken in the security field as it faces two unresolved wars : Afghanistan and Iraq. The situation in Afghanistan has become untenable and volatile with the escalating violence claiming civilian lives everyday. In Iraq, it will be a fulfillment of an agreement with the Iraq leadership for a military retreat without jeopardising USA's own interest in the region. There are other urgent issues to focus on, as in the case of Iran and North Korea's nuclear programs.

In the field of energy, USA felt the cost impact of imported oil that has severely affected the American consumers. It has also shown how vulnerable and dependent the US economy has been on oil coming especially from unfriendly country-sources. Even high on the agenda is the need to tackle the threat of global warming. Domestic production of oil must be seen in the light of environmental balance and caution.

The last, but not least on the top agenda of the new Democratic presidency is health care reforms. It is reported that around 47 million Americans have not health care security. Health care security is often tied to one's employment and today when many Americans are jobless, the problem assumes a greater urgency. Companies forced to tighten the belt are passing on the health care problem to the employees themselves.

The world will watch with great anticipation how President-elect Barack Obama will tackle these major issues and whether America can become great again.#

The urgency of a diplomatic presence

Sweden opens an embassy in beleaguered Afghanistan, a positive move towards support for the democratisation and peace-creation initiatives in that country. This symbolises the Swedish commitment in peacekeeping operations far away from its Nordic borders, writes Dagens Nyheter today. Sweden is one of forty countries that contributed soldiers to the peacekeeping effort.

The NATO-led initiative consists of 52,000 men and women working under the Isaf or International Security Assistance Force, under a direct mandate from the UN, to help Afghanistan President Hamid Karzais' western-friendly government to uphold and maintain security in the country. At present, there are 375 Swedish soldiers participating in the peacekeeping operations based in Camp Northern Lights in Mazar-i-Sharif in northern Afghanistan.

Last Thursday, Swedish Foreign Minister Carl Bildt visited Afghanistan and the Camp Northern Light to see the actual condition of the Swedish soldiers and mostly to meet with the Afghan leaders. He said that "the Swedish soldiers are making an importance contribution for security in the area, and that they are very professional."

The Swedish aid to Afghanistan is around 400 million Swedish crowns, channeled mainly through international organs and help organisations. One-third is reserved for the northern part of the country. The aid money is earmarked for education, improvement of women's position and infrastructure work.

Seven years after the United States put a stop to the Islamic tyrannical leadership, the number of Taliban-directed attacks have increased, claiming the lives of hundreds of civilians. Foreign aid workers have been kidnapped and murdered in what appears to be a well-designed attempt to terrorise humanitarian workers and help organisations. The Talibans have succeeded to take over the southern and eastern parts of the country. At the same time that the peacekeeping soldiers protect the local population, they must also work to reduce the local support for the Talibans. It raises a question on why some local people still support the Islamic extremists.

The opening of a Swedish Embassy in Kabul is a positive development even if the security situation is far from satisfactory. The diplomatic move has sent the right signal to the world, that an international community investing both economically and emotionally in Afghanistan's young democracy is not giving up. (With translations from Dagens Nyheter, 2 Nov. 2008)

Sweden braces for deep recession

The financial crisis is hitting the Swedish economy with full force as the credit squeeze tightens the belt of almost all types of business enterprise, reports Dagens Nyheter today. The recession is the worst yet since the 1990s, and it is predicted that 100,000 jobs will disappear from the Swedish market.

In a report by the Institute of Economic Research (KI), not only will 100,000 jobs leave Sweden but unemployment will rise from 6 to 8 percent. When the Lehman Brothers- one of the world's biggest investment banks hit the rocks in mid-September this year, the KI was forced to revise its recession forecast. The widespread loss of confidence in the banking system made it impossible for the credit system to function. KI revised its August analysis- and the economic forecast is worst than expected.

The GNP or Gross National Product - which measures the value of all production and services of a country, will grow by only 1.2 percent. Even in the forthcoming last quarter of the year and the 1st quarter of 2009, the GNP growth will contract to 0.1 percent. In 2010, the economy is expected to improve although not enough to create more jobs. "We see no recovery before 2010," says Urban Hansson of KI.

As the Swedish economy dives into unprecedented recession, the parliament approved on Wednesday a stability package presented by the Alliance government. It takes effect today, Thursday. "The objective is not to support the banks but the households with loans and companies that need credit for their orders," says Finance Market Minister Mats Odell. The stability package consists partly of a guarantee for the banks' borrowings, and partly on the rules on how banks in crisis could be saved. The guarantee amounts to 1500 billion SEK. The state will take in from banks and other participants a total of 2.64 billion SEK yearly.#

Where does Swedish aid money go?

Swedish development aid is an issue that generates controversy, especially if the reasons for its existence which is basically the reduction of poverty among the poorest in the world, is not achieved. In a special report today in Dagens Nyheter, the utilisation of Swedish aid money is once again under close scrutiny.

It appears according to the report, that no other previous Swedish government have had so much money to give to the poorest countries than the current Alliance government. From the level of SEK14 billion in 2000, development aid has risen to SEK34 billion today, although the recession may eat up some of this amount. But the controversy is not on how huge the aid money is but rather where and how it is used that bothers many.

One important reason why the Swedish aid money has grown enormously is the 1 percent of the gross national product (BNP) target that is expected to go to development assistance. With the looming recession, this one percent is a huge amount to pay. Swedish development assistance Minister Gunilla Carlsson is quoted as saying:"An economic brake means low demand in the world market, reduced export from developing countries, low national incomes because att the prices of raw materials have gone down and foreign investments are also down.There is also the risk that developed countries become more protectionist and less generous with their aid money as well as less enthusiasm to fulfill earlier commitments," Carlsson says.

SIDA, the Swedish development aid authority was earlier criticised for irregularities in the accounting and auditing of several projects. Bengt Nilsson's book "Sweden's African War," pointed out that in principle all development aid to countries should be abolished because it often ends up supporting wars and corrupt regimes.

As far as Gunilla Carlsson is concerned, the current recession is a good argument against the 1 percent aid target. At present, Swedish aid money goes to supporting diplomatic presence, as in Kabul; asylum and refugee reception and debt writeoffs. The biggest aid receiver is still Africa with SEK6.2 billion; Asia with SEK2.8 billion; Oceania with SEK2.4 billion and South-Central America with SEK1.4 billion. The rest of Europe and the Central and Eastern Europe gets SEK1.4 billion and SEK319 million, respectively.

How the future of the Swedish development aid will look like depends upon the outcome of the ongoing debate among the different political parties and the global economic meltdown.#

Europe and Asia meet on financial crises

Over forty heads of governments from Europe and Asia met Friday evening to discuss and find solutions to the acute world financial crisis, reported Dagens Nyheter today. A general feeling of emergency characterizes the Asem meeting that is held every other year.

Even before the meeting formally opened, discussions on the current financial crisis already begun. Swedish Prime Minister Fredrik Reinfeldt was quoted as saying to the Swedish media in Beijing : "After all, I find myself in the company of some 44 heads of governments and those who say that things are bad in Sweden should hear what others are describing. It is dramatic for many just now."

During dinnertime, the attending heads of governments focused their talks on finding common measures to meet the threat and dampen the crisis. " It is a darkness that looms over the world", said Reinfeldt after hearing what others say of the effects and prognoses in their respective countries.

The European Union's Chairman Jose Barroso in his opening statement urged cooperation in creating common rules and regulations for the international financial system and the importance of not closing national doors to protect domestic markets. His message was that protectionism only stops the chance for world recovery. The discussions were mainly on how the stabilisation package could be coordinated globally. "It is how to do this without over-regulating the market", says Reinfeldt.

The Asem meeting has no deciding mandate but the French President Nicolas Sarkozy urged the Asian government leaders to support Europe, in order to write a rule book on international capitalism which would guide the forthcoming meeting in Washington between 20 countries on Nov. 15 this year.#

Swedish gov't gives loan guarantee but demands bonus stop

In a unique agreement announced today, the Swedish coalition government guarantees the banks borrowings to the tune of 1.5 billion Swedish crowns. As a requirement, it is demanding a stop on bonuses but not on dividends."We will not have bonuses that can lead to a lot of risks when we stand behind the guarantees," says Finance Minister Anders Borg.

Several other countries have recently undertaken huge bailout packages for the banking sector. But in order for the taxpayers to guarantee the private banks' transactions certain requirements are necessary. One of the tougher requirements is to abstain from dividends to shareholders. In United Kingdom, the demand on suspended dividend payments runs for five years, in Denmark two years. In Sweden, the discussion is under hard criticism. Last Monday, the coalition government presented a package of measures aimed to calm the finance market. There was no mention of a stop to giving out dividends.

According to Swedish Financial Market Minister Mats Odell, the reason behind the stop to dividends is that banks could run out of money if they make new share issues. " This would mean that we have forget new capital injections to the banks that need one. It would be a signal that the state would take care of the whole capitalization issue," Odell states.

The share market reacted positively to the government's bank package and all the bank shares rose in value last Monday. The banks' dividends have been sizable in the recent years and they have influenced an upswing in share values. Last year Swedbank, Handelsbanken and SEbanken together issued 15 million SEK in dividends. The partly state-owned Nordea bank issued around 12 billion SEK in dividends.

The requirement that stands behind the government guarantee is the stop to bonuses during the guarantee period and a statusquo to salary increases and board members' fees and severance pays. The demand on banks however, stands only during the guarantee period that stretches up to April 30, 2009 which means that it would be no hinder to raise salaries and give bonuses if the guarantee period is not prolonged. According to the government, a prolongation is possible up to December next year. ( Translated from Dagens Nyheter, Oct. 21, 2008)

Economic troubles threaten to capsize EU's climate target

In the shadow of the European Union's unity on how to resolve the financial crisis emerges a conflict on how the EU will tackle the global warming problem. Several Eastern European countries are intent on releasing more carbon dioxide in order to cope with the costs of the economic downfall.

The financial crisis is top priority in the agenda of the forthcoming heads of states meeting in Brussels Thursday and Friday. A deciding step towards a common plan to tackle the financial crisis was agreed upon last Sunday when the heads of the Euro countries meet in Paris. This time, all 27 EU leaders will have to stand behind the common action.

However, even if the EU leaders are agreed on how the financial crisis will be resolved though savings and credit guarantee's, state interventions and auditing regulations the big question on climate goals remain undecided. The EU countries have agreed to reduce the carbon dioxide emission to an average of 20 percent by 2020. The question is, how big will be the reduction by each EU member state.

Several EU members are discussing how the financial crisis have affected their economies and are asking for a more lenient adherence to the EU proposed goal in order to increase their competitive advantage. For example, Poland, Bulgaria, Romania; Czech, Hungary, Slovakia and the three Baltic states - which had a separate meeting before the summit. They want to reduce their commitment to the climate package.

Sweden's Prime Minister Fredrik Reinfeldt says that " the climate issue cannot wait." He thinks that many try to lighten their burden by using the solidarity argument. " I believe that one should be cautious," he was quoted as saying. (Source: Dagens Nyheter, 16 October 2008)

Swedish banks promised state support

The Swedish banks will get government support at the same time that the Central Bank announced an additional 150 billion Swedish crowns injected into the the banking system. A new law is being prepared in record speed towards implementation of these new measures which came about after the meeting Sunday night of Euro member states.

The Swedish Central Bank will release the money to the banks in two installments, the first on Wednesday and the second on Thursday and it will run for three months. At the same time, the Central Bank also plans to ease credits to companies outside of the financial sector.

The agreement on state support to European banks made by EU heads of state last Sunday will also become a Swedish law. The agreement provides a framework for the rules that will encompass the state support, although each EU member-state will have each own implementing law. "This is very heartening", said Prime Minister Fredrik Reinfeldt. He stressed however, along with Finance Minister Anders Borg, "that the Swedish banks do not need any capital injection. It is simply capital coverage that is needed since they are still earning well."

Another plan by the government is for the state to guarantee depositors' money in the event any bank goes bankrupt by raising the present SEK500 - recently raised from SEK250, to a higher amount. Both Reinfeldt and Borg think that the agreement among the European leaders is a sign of a more determined and unified action than what one could see in United States.#
(Source: Dagens Nyheter, 14 Oct. 2008)

EURO member-states move to avert financial crisis

French President Nicolas Sarkozy announced Sunday evening that the European leaders have agreed on a common plan to tackle the banking crisis using the British model to create stability in the economic system. Along with British Prime Minister Gordon Brown, Sarkozy took the initiative in the campaign to save the world economy, especially after the IMF announced that the financial system is threatened by the lack of liquidity.

The fifteen Euro member-states met in Paris Sunday night and agreed on a common plan whereby the governments would inject large sums of money into the bank system as well as safeguard the credit system between banks. "Europe is united to tackle the crisis", Sarkozy said, adding that each country could be forced to come up with their respective measures.

Swedish Prime Minister Fredrik Reinfeldt said that "whether the bailout package would have sufficient effect depends upon how the guarantees are exactly formed." He added: " We have been very active, not least with Denmark and Finland, and many here have also asked since we have had a similar experience with a banking crisis ( in the 1990s ) and how we resolved it."

He also said that, as far as the Euro member-states package is concerned, everything will depend upon the details, how they will be formed; what would be the limits of the guarantees and how would the members react in common against a financial institution that needs saving.#

Martti Ahtisaari: A worthy peace prize winner

Former President of Finland and peace negotiator Martti Ahtisaari is the 2008 winner of the Nobel Peace Prize, a well-deserved recognition that came three years late. He was not particularly surprised at receiving the award, reported the Swedish daily, Dagens Nyheter (DN). Ahtisaari's effort to broker a peace negotiation in Aceh province in Indonesia, shortly after the tsunami catastrophe has successfully brought peace in that beleaguered region.

He said: " I have received the prize for my life's work. This is the biggest recognition one can get in my area of work", he was quoted as saying. He received the news en route to a meeting with current Finland President Tarja Halonen. "The prize has come at an important moment. This morning I learned that Montenegro and Macedonia have recognized Kosovo's independence. Now I hope that others will follow their example", he said.

The Norwegian Nobel Peace Prize Committee's choice of Ahtisaari was motivated by his "significant efforts in the resolution of international conflicts in several continents over the last three-year period." The Committee believes that Ahtisaari with his work in crisis management has contributed to a more peaceful world and brotherhood between nations in the spirit of Alfred Nobel's will.

Earlier in the week Ahtisaari was also awarded UNESCO's recognition for his life work on peace promotion. Experts predicted that his getting the Nobel Peace Prize was not far behind.

There have been criticisms for some of the earlier Nobel Peace Prize awards because they were not given to those for whom the recognition was intended for. Sometimes the motivation was politically-oriented in an effort to influence a particular development instead of rewarding an actual achievement, as was the case of 1966 prize to Carlos Bela and Jose Ramos-Horta from East Timor, wrote DN. Others were even controversial like Henry Kissinger, or the unknown Rigoberta Menchu Tum. And there were those that should have received the peace award but never got to Oslo, like the International Tribunal for War Criminals, added DN.

This year's Nobel Prize winner appears to have satisfied Alfred Nobel's intention that one who succeeds in bringing tangible peace in any part of the world, must be justly compensated. It is the traditional spirit of the Nobel Peace Prize.#

The Aftermath of America's Financial Crisis

The United States congress has voted down the USD700 billion bailout plan and sent stock markets around the world spinning to new lows. Pres. George Bush Jr. has lost whatever influence he has over his own Republican congressmen who refused to save "Wall Street at the cost of Main Street". With the US elections in just 34 days from today, the only political platform of urgency is the economic salvation of United States. Everything else pales in comparison and importance.

Having watched the CNN for almost 12 hours each day since the first broadcast on the shocking financial crisis to hit America since the 1920s, starting with the downfall of the global American Insurance Group or AIG then followed by other major investment houses, the impact had been tremendous especially for ordinary people with houses and pensions to lose. Wall Street has been accused of greed and recklessness and US politicians have the right to be angry, to refuse to bail out the culprits of this world-shaking financial catastrophe.

In Sweden, the stock market plunged and sent pension funds and company shares to new lows while mortgage loans hit new highs in interest adjustments. The Swedish dailies headlined impending cutbacks among industrial workers such as Volvo, where 1900 will lose their jobs; pension companies will be declaring a zero return on investment; interest rates will hit major companies and housing mortgage loans will go up in interest rate payment.
Those who borrowed 80 to 90 percent of their house values are worst affected, writes Dagens Nyheter.

Having watched the debate between the US presidential candidates last weekend, I was convinced that Republican candidate John McCain has more experience to take over a very troubled American economy. It seems though that Barack Obama is better understood by ordinary Americans now threatened with more unemployment and failure to pay housing mortgages. McCain has the misfortune of being blamed for the failures of the Bush Administration, although he has been trying to distance himself from the mistakes of the outgoing presidency. I do believe that McCain will and can handle the urgency to act on America's economic situation with his long experience as legislator as against Barack Obama's elegant rhetoric.

Sweden breaks military contacts with Russia

Russia continues its military escalation with threat of nuclear arming its ships in the Baltic sea. But the Russian fleet is weak and old, according to a report of the Swedish defense. In the meantime, the Alliance government has suspended its military contacts with Russia until further developments, reported Dagens Nyheter.

The British paper The Times revealed Russia's plan to increase its military capacity in the Baltic sea by nuclear arming its submarines and other vessels, apparently as a response to United States plans to set up robot defense shields in Poland.

"The Russian military doctrine has a strong emphasis on nuclear arms which is naturally worrisome, after all it goes against our desire to reduce nuclear armament", commented Swedish Foreign Minister Carl Bild.

But Russia's Baltic fleet is in bad shape, according to a defense research report. After the demise of the Soviet Union, its fleet has been reduced to two submarines, of which one is under repair and two sweepers. Most of the ships are from 1980s.

FOI researcher Ingmar Oldberg says however that the Russian escalation in the Baltic region does not mean increased threat to Sweden, but on the contrary against Poland and the Baltic states. " But we must reconsider out judgment of Russia and our solidarity with the Baltic states via the EU also has to be re-evaluated", says Oldberg.

Sweden's reaction to Russia's attack of Georgia has been to suspend military exchange visits. It involves mainly meetings between high Russian and Swedish military officers. Some members of the Alliance government are in favour of breaking completely the exchange visits. The opposition Socialist Party agrees with the Alliance government's move to postpone the planned military exchange visits.
(Translated from DN's report,19 Aug. 2008)

No political boycott at China Olympics 2008

All talks of a political boycott of the 2008 Olympics in China has run out of steam. When the games open in two weeks, political heavyweights like USA President George Bush and Russia's Vladimir Putin will be in place. From Norway will come King Harald as well as the Swedish royal couple King Gustav and Queen Silvia.

The Swedish government has no thoughts of showing any criticisms against the Chinese government for its iron-handling of the Tibetan monks' protest by absenting itself from the gala opening ceremony. "We never had any positions to boycott the Olympics opening ceremony," says Swedish Culture Minister Lena Adelsohn Liljeroth.
Human rights organisation Amnesty International has no demands either to boycott the Olympics. It has been a Swedish tradition to send the culture minister to the Olympics inauguration, followed later by the Royal couple's visit from Aug. 14 to 24.

It is not yet clear which heads of states are attending the Olympics 2008, although Reuters has reported that USA's George Bush, the French President Nicolas Sarkozy, who is also currently holding the EU presidency will be attending, as well as Russia's Vladimir Putin and Israel's Shimon Peres. Finland will be represented by Prime Minister Matti Vanhanen. Netherlands, Japan, Australia and Italy will also be represented by the respective heads of states.

Earlier this year, China was very much in world focus for its handling of the protesting Tibetan monks. It was then that talks of a political boycott of the Olympic games became heard, especially from French President Sarkozy. But he says now: "I believe that insulting China is not the best way of showing respect for human rights. I do not believe that one can boycott 1.3 billion people which is one-fourth of the world's population."

Other leading politicians like Germany's Chancellor Angela Merkel and United Kingdom's Gordon Brown have clearly stated they will not attend the opening ceremony. But according to Us CBS News, Brown is thinking of coming for the closing ceremony.

(Translation made from DN, 28 July 2008))

Parliament to vote on a law that violates private person's integrity

In two days time, the Swedish parliament is set to vote on the passing of a new law designed to give free reign to the state information system, to listen to and intercept all forms of communication via the Internet and telephone. The motivation behind this draconian measure that will trespass on the citizen's right to integrity is a presumed threat of external terrorism.

Dagens Nyheter's columnist Niklas Ekdal writes: " One does not need to have paranoia or sharp imagination to see how the state information can be abused. Sources, confidential letters and other matters of course disappear simply by pressing 'Delete'."

Listening devices have played an important role in the last two World Wars as well as during the Cold War. The art of intercepting enemy communication, at sea or land and reacting in time to subvert an attack was due to inventions in the field of information. But times have changed with the discovery of highly sophisticated information technology. World politics is changed and may require an even more advanced system of security surveillance. But not at the expense of the people's right to privacy and integrity.

Enacting a law that allows the state to intrude into the private realm of the citizen's life sends a jolting reality in a democratic society where person's integrity is sanctified in law. That this is happening in Sweden is unimaginable and speaks of ignorance on the part of parliamentarians with bad security advisers. This is heading for totalitarianism through information control, which is what happens in China and other dictatorships around the world. What a terrible setback in a democratic society!

Forced marriages and marriages for sale

The Swedish Migration Board is once again on the limelight for failing to do a proper investigation into an arranged marriage that took place in Iran whereby the supposed bride was brought to Sweden, wherein said marriage did not last the legally-mandated two-year period to allow a permanent residence permit. The Iranian woman is now due for deportation back to Iran where she allegedly faces death threat from her own family.

The Migration Board has become more generous in its assumption that Swedes and holders of permanent residence permits who marries abroad, or finds a partner abroad and returns to Sweden "stays married" because they found love. Indeed it is naive to pursue such an assumption as basis for a migration policy. It smacks of ignorance of the thriving marriage business, whereby a Swedish national or holder of a residence permit can enter into a marriage contract for the cost of no less than 100,000 Swedish crowns. Poor parents in some remote villages in Asia, Africa and even Latin-America could easily welcome the idea of marrying off their daughters, or sons in exchange for hard currency.

The waiting time of two years to prove serious marital intent may protect the women from immediate deportation but it does not control the flourishing marriage business nor put a hinder to parentally-arranged marriages. Nothing is more detrimental to women than to be forced into a loveless marriage, a marriage where violence and domestic abuses happen.

According to Dagens Nyheter ( June 10, 2008) there were around 16,000 persons last year who were granted temporary permanent residences and a large number were women from Thailand. It is pre-supposed that even in these cases, some were made out of a business arrangement. It is a known fact that in Thailand's remote villages, poor parents sell their daughters if not to marriages, then to brothels and sex procurers.

It is lamentable that the Migration Board should adopt an indifferent attitude towards the real possibility of human trafficking disguised as marriages, or that it should presume that nationals bringing potential brides to Sweden are motivated by the noblest emotion called love.

Iraq asks conference for a debt write-off

The International Conference on Iraq held in Stockholm on Thursday, May 29th did not achieve any dramatic results but was judged by many as a positive step forward. The United Nations and international community urged the Iraq government to build a working state governed by law, while at the same time getting good words for the progress it has achieved.

"The international community is pressing Iraq's elected leaders to report on what it has done, something one cannot underestimate", says Swedish Prime Minister Fredrik Reinfeldt. Speaker after speaker have reiterated that Iraq has actually achieved economic, political and security progress during the recent year. UN Secretary-General Ban Ki-Moon, who chaired the conference and Iraq's Prime Minister Nuri Maliki said that violence in Iraq has decreased in comparison to the alarming level during 2006 and start of 2007.

Iraq Prime Minister Nuri Maliki reported in a long speech the progress made on the economy and security, while at the same time stating that "significant challenges" remain, and that a big number of civilians face military violence, plus the unsettled division between Shites, Sunnis and Kurds in Iraq. Nuri urged the conference for a write-off of Iraq's debts, a big part of which was left behind by the Saddam regime - which includes war damages to Kuwait after Saddam's invasion of 1990. For this, Iraq must pay 5 percent of its yearly oil revenues to the tune of 3.5 billion US dollars.

In the final conference declaration it was emphasized that protection of women and minorities and other exploited groups was of paramount concern for Iraq's government. The next international conference is planned next year in Baghdad. ( Translation made from DN news report, May 30, 2008)

Reinfeldt satisfied with US promise to take in more refugees

US State Secretary Condoleeza Rice promised the Swedish Prime Minister that USA will open its doors to more Iraq refugees, a priority concern that was taken up during a meeting on Thursday morning. She mentioned a figure of some 12,000 refugees. Iraqi refugees that sought refuge in the small county of Södertälje told the prime minister that they came to Sweden because it has an "open door" when others were closed.

Rice expressed her gratitude and appreciation of the generous Swedish refugee policy. "Sweden has really taken a significant responsibility for Iraqi refugees. It is much appreciated both by Iraq and the US." She added that US is trying to improve its refugee reception capacity and that she has a close refugee coordinator working with her. She added that, "if we succeed in making Iraq a safe place, people can return home."#

Crises and challenges facing the coalition gov't.

Swedish Prime Minister Fredrik Reinfeldt is back home after his reported successful state visits to China and Japan where he laid the ground for Sweden's presidency of the European Union in autumn 2009. Topping the list of his agenda was a program for achieving the environmental goal of reducing carbon dioxide emission.

Reinfeldt's high diplomatic profile is further highlighted when Sweden hosts an international conference on Iraq at the end of this month. The conference which will be attended by some 80 delegates from different countries and will tackle the problem of Iraq's reconstruction and democratization. U.S. Foreign Minister Condoleeza Rice who will be attending will be received by the Swedish Prime Minister, who will inform her that Sweden has taken a large number of Iraqi asylum-seekers, much more than USA and EU combined.

It is Sweden's generous reception of Iraqi refugees that made it a suitable conference venue for the international meeting. For a small country that had nothing to do with the decision to go to war in Iraq, Sweden has indeed gone out of its way to be accommodating to the Iraqis. The chairmanship of the conference will be held by UN and the Iraqi government. An important topic of discussion will be the appropriation and use of Iraq's oil resources.

While the Swedish government is earning merits in diplomacy and humanitarian assistance, there are rumblings in the homefront that hits the basic humanitarian values of a democratic society. These three issues, outlined in Dagen Nyheter's editorial of May 17, are occuring simultaneously. The first concerns the near bankrupt defense establishment which questions seriously the credibility and ability of the Swedish defense to perform its role domestically and internationally. The second, is the inability of the country's justice system to prosecute an increasing number of cases due to lack of funds. As the cliche goes, " Justice delayed is justice denied." The third is the situation of refugees without legal documents who have no access to medical care and hospitalization.

The burden of solving these crises, as well as of facing challenges rests upon the Coalition government, and not upon any single political party in power. One reported reason why refugees in hiding are not given access to medical care is the apprehension that they will find stronger reasons to stay. #

Where's the Aid Money?

A large part of the Swedish National Audit's devastating report on irregularities concerning development aid money in certain African countries is being challenged by a new report issued recently by SIDA (Swedish International Development Authority). But the National Audit Authority is not changing its view.

In autumn last year, the Swedish National Audit conducted an investigation of 15 SIDA-financed projects and none was found faultless. Ten were found with serious accounting irregularities; five were fraudulent and two had serious indications of irregularities and errors.

It was discovered in the autumn audit that some aid money disappeared without a trace. The audit investigation was made on SIDA-financed projects in South Africa, Namibia, Kenya and Tanzania - with a total budget of SEK36 million. The money was not properly accounted for in the books, accounting procedure was wrong and certain projects were non-existent, to name a few shortcomings.

SIDA, stung by the criticism conducted its own investigation. " Of the National Audit's 30 suspected irregularities 12 were confirmed", says Sture Eriksson, auditor at Allegretto which did the audit for SIDA. He claims that they have investigated deeper into the supposedly 30 suspected projects, which is why they disclaim errors in about half of them. But the new SIDA audit also found irregularities in the accounting.

Regardless of what the SIDA audit found as mitigating circumstances in the use of aid money, the National Audit stands on its own report. A SIDA-supported NGO, Forum Syd is one one of those whose project was criticized. (Translation made from DN report, 20 March 2008)

Swedish Forces in Afghanistan to get reinforcement

Both the Swedish government and the Ministry of Defence have agreed to increase the military reinforcement in Afghanistan, reported Dagens Nyheter recently. It will consist of an additional 130 to 150 men from today's 300.

Swedish Defense Minister Sten Tolgfors says however that the government has not taken any definite decisions as to the size of reinforcement. He says that, his ambition is to increase the Swedish military presence and he prioritises the sending of three helicopter ambulances to improve the medical chain and insure the safety of the ground troops.

The mandate for the current Swedish troops in Afghanistan runs out in December and it will be up to the government and the parliament to decide on any prolongations. Earlier, there was a controversy on pulling out the troops after six months due to costs and the rainy season.

It is not clear as of today what specific duty the additional soldiers will have. It could mean reinforcement in the Provincial Reconstruction Team, PRT, in Mazar-i-Sharif in north Afghanistan which is headed by Sweden. Tolgfors however assured that no Swedish soldiers will go to the southern part where the security situation is bad. It does not mean however that the same problem does not exist in the north, he adds.

As to where JAS fighter planes will be offered to the forces in Afghanistan remains a question. Tolgfors says that this is a matter for NATO which leads the Isaf-forces in Afghanistan. He reiterates that his priority are ambulance helicopter planes. "There are other EU countries that can supply the fighting planes," he says.

Olofsson's Energy Tale: An Awkward Misunderstanding

Dagens Nyheter's columnist Peter Wolodarski writes about Industry Minister and Deputy Swedish Prime Minister Maud Olofsson's Saturday visit to Washington, to deliver a speech at an international energy conference, on invitation of USA's Foreign Minister Condoleeza Rice. Olofsson's talk is about " A Land's Successful Story - Political Decision for the Promotion of Renewable Energy".

The information that has been made public does not say whether the United States will import the Center Party's energy policy because if they do, it would be good to get some facts straight, writes Wolodarski.

Sweden belongs to a group of countries in the world that emits the least amount of carbon dioxide and this is due to a unique energy mix composed of water, wind and nuclear power plus some other minor sources of heat. Sweden's climate account shows contribution from water and nuclear power. Without these energy sources, Maud Olofsson would have no story to tell Washington, the DN columnist writes.

"It is ironic that Maud Olofsson should teach the world about " the Swedish success story" when decades ago, her Center Party advocated the dismantling of the nuclear power stations. And if that should have happened, Sweden would have depended upon fossil fuel, like Poland, Denmark and Germany. Carbon dioxide emission would have been much higher than it is today".

It is environmentally-huge, economically and morally indefensible that leading Swedish politicians still talk about the dismantling of the nuclear power plants, as did Social Democratic Party leader Mona Sahlim in a recent TV interview. Sahlin appears not to care about the consequences for climate or for the Swedish base industries, which cannot service without cheap source of fuel.

The day Maud Olofsson and Mona Sahlin would seriously implement their energy policy, would be the day they could go to Washington and discuss it. Until then, such trips constitute an embarrassing misunderstanding, says Wolodarski.
( Translation made by Sheilah Ocampo Kälfors from Wolodarski's column, DN March 1, 2008)

What will Reinfeldt say to China?

Swedish Prime Minister Fredrik Reinfeldt is visiting China on mid-April - a state visit intended to strengthen the Swedish and Chinese economic and trade relations. He will meet with Chinese Prime Minister Wen Jiabao as well as President Hu Jintao. It would be the first state visit to China of a Swedish prime minister in twelve years.

It is understandable that bilateral economic and trade issues are a priority on the agenda, considering how China is expanding astronomically in both areas especially in Europe. The importance of this particular issue is evidenced by a strong contingent of 20 to 30 representatives from the Swedish business sector.

On the agenda is also climate and environment technology, which is more or less expected in the light of Sweden's presidency of the European Union in 2009, when the UN negotiates on a new climate agreement, there China plays a key role.

But there is a strong pressure coming from human rights lobbyists in Sweden, in particular the Amnesty International, Swedish Section for the Swedish Prime Minister to take a tough stance against China's human rights record. AI states in particular that Reinfeldt must take up a critical position against forced transfers and detention of human rights activists without due process.

Gov't tightens requirements for asylum-seekers' family

Prime Minister Fredrik Reinfeldt's Alliance government has recently announced tightened requirements on asylum seekers who want to bring their families to Sweden. "The must stand on their own feet", headlined the Swedish daily Dagens Nyheter. The process of examining details of the stricter requirement for bringing in family members are now in process, such as demand for source of income and housing. According to the government, the work requirement will be crucial.

"It is our responsibility to see that a multiethnic society works better", Reinfeldt was quoted as saying when he presented the directives. "An important ground is the possibility to stand on one's own feet. It is good that many foreign- born today have jobs. In this working line is included the decision to demand that an asylum-seeker has the capacity to provide for his family," he added.

Asylum-seeker should have regular jobs, although not necessarily permanent, in order to bring to Sweden their family members. But those under the refugee convention are exempted from the requirement. Similar demands are now practiced in all European Union member-countries except Sweden and Belgium.

The Christian Social Democrats in the Alliance want to modify the requirement by extending a four-year period for the income-support demand. How the housing requirement will shape up remains in the hands of a current investigation.

Migration Minister Tobias Billström has not given any statistics on how many family dependents wanting to come to Sweden were denied for reasons of failed compliance with the income-support requirement. The Social Democratic government reportedly did the same investigation into the income requirement, but released no views on it. "It is not an unreasonable idea but not the best solution", says Magdalena Streiffert, political refugee spokesman for the opposition Social Democratic party. The Leftist party opposed the new requirement saying that " it is the worst violation of refugees' human rights".

Sweden's gender equality remains wanting

The Committee on the Elimination of Discrimination against Women (CEDAW) has recently released during its Fortieth session, an assessment report on the gender equality performance of Sweden. It noted Sweden's adoption of a national human rights plan of action for 2006-2009, which focuses on protection against discrimination, as well as the adoption in May 2006 of a new gender equality priorities. The government has also increased by tenfold the budget for gender equality policy, as well as the promotion of gender mainstreaming throughout the governmental bodies.

The Committee also noted the adoption in November 2007, of an action plan to combat men's violence against women, violence and oppression in the name of honour and violence in same sex relationships. Furthermore, the amendment of the Swedish Aliens Act of 2006 to grant refugee status to persons claiming fear of persecution on grounds of gender and sexual orientation was also acknowledged. Another positive contribution was the amendment of the Abortion Act in Nov. 2007, wherein women can have abortion in Sweden even if they are not Swedish citizens.

But Sweden's gender equality performance requires further improvement, the CEDAW committee stated in its report. It noted that the Swedish constitution is "gender-blind" or not "gender-sensitive" and that the concept of gender equality is not in line with the Convention. It is recommending that Sweden's future Anti-Discrimination Act, which will cover seven areas of discrimination be made part of the domestic law.

The Committee also urges Sweden to use the Anti-Discrimination Act to strengthen the national legislative framework for the protection of the human rights of women, as well as increasing the awareness among judges, prosecutors and lawyers of the Convention, through practical reference to it in all aspects of its work. Although Sweden has already been gender mainstreaming at the municipal, regional and governmental levels under its 2004-2009 plan, the Committee noted that the plan "lacks effective monitoring and accountability mechanisms, including sanctions for non-compliance.

The Committee expressed its concern over the "persistence of stereotypical attitudes towards women" particularly in media, in what it calls the "sexualization of the public sphere." It is urging Sweden to use strategies to combat the sexualization of the public sphere, in order to insure that media coverage is non-discriminatory.
In addition, the Committee noted the low percentage of women in the academia. It is recommending the use of temporary special measures like quotas or goals.

The report also noted the women's high level of participation in the labour market and asks that measures should be taken by the Swedish government, to encourage the trend by enabling women to cope with both their work and their family life through the extended maternity and paternity leave schemes.

In addition, the report also noted the high prevalence of violence against women and girls, particularly those committed in the name of honour. Furthermore, it stated that there is a low prosecution and conviction rate of crimes related to violence, and that Swedish crime statistics are not sex-specific. There are also no statistics of women and girls living in Sweden, who have been genitally mutilated.

The Committee acknowledges the progress made to address the issue of trafficking, which includes the ratification in July 1, 2004 of the Protocol to Prevent, Suppress and Punish Trafficking in Persons, Especially Women and Children. But it is concerned with the trafficking of women and girls into Sweden and the insufficient data of its prevalence. It is equally concerned at the occurrence of trafficking in girls, prostitution and similar crimes committed by Swedish men abroad. It is recommending that passports not be re-issued to those freed after posting bail, for committing crimes of sexual exploitation abroad.#
( Source: CEDAW Fortieth Session, 14 January-1 February, 2008. Advanced Unedited Version)

Reinfeldt hopes for Obama as US president

Swedish Prime Minister Fredrik Reinfeldt hopes to see Barack Obama Jr. as next president of United States, Dagens Nyheter reports Wednesday ( Feb. 6, 2008). He states that Obama has the best economic policy, even if " he seems not to understand the value of free trade".

"It is difficult to go against one's own politic. Obama's position on income tax deduction for low and middle income earners look like a copy of the Alliance government", Reinfeldt told journalists during a press encounter at the Swedish parliament.

Reinfeldt has often expressed his appreciation for fomer US President Bill Clinton - husband of top-running Democratic candidate Hilary Clinton. Today, he thinks that Obama represents a more "Clintonish" politics than Hilary. While Hilary Clinton's economic advisers were also with her husband's presidential time, Barack Obama leans towards younger academics than those with political roots. Reinfeldt sees similarities with his own Finance Minister Anders Borg and other national Swedish economists.

With Obama Reinfeldt feels likewise that tax reduction would entice more senior wage earners to stay longer in ther labour market. Hence, he thinks that Hilary Clinton is not exactly precise in her politics that targets low-income wage earners, thus creating more jobs.

On climate issues - a very urgent issue among nations these days, Reinfeldt thinks that Obama and aspiring Republican candidate John McCain have the best policy position. "Just as well since many Americans seem
panic-attacked by carbon dioxide tax. But if the transport sector is exempted, it will be difficult to achieve the carbon emission goal", Reinfeldt says.

But Reinfeldt thinks that we would not fit in, in the American politics that readily accepts the death sentence, runs for public office and declares belief in God.
(Translated from DN, Feb. 6, 2008)

New plan of action against child sex tourism adopted

The Swedish government has adopted a new plan of action to fight child sex tourism, Network Europe announced recently. The move was welcomed by non-governmental organisations such as ECPAT, short for End Child Prostitution in Asian Tourism.

Sweden, an early signatory to the UN Convention on the Rights of the Child or CRC has been at the forefront of the international campaign to stop "trafficking and commercial sexual exploitation of children and women." CRC is almost universally ratified. Related to the CRC is the Convention for the Elimination of All Forms of Discrimination against Women, or CEDAW, which is also widely recognised. Despite the over-reaching protection extended by a number of international legal instruments, the problem of child sex tourism and trafficking of women remains enormous.

Ms. Mehr Khan, UNICEF Regional Director for East Asia and Pacific Region reported that in the region alone it is estimated that 14 percent of the GNP is generated by the commercial sex industry. There are major actors with strong financial interest to continue with the business of commercialising sex tourism, he added. Statistically, he estimated that "one-third of global trafficking of women and children takes place within and from Southeast Asia representing 230,000 women and children." Of these, 60 percent go to major cities in the region and 40 percent, to the rest of the world. The United Nations, on the other hand, estimated "the global total of child victims of trafficking to be around 1.2 million, which suggests perhaps 300,000 to 400,000 in the region," Khan reported.

It is all too well-known that the main root cause of the problem is poverty. Traffickers prey on the poorest families especially in countries like the Philippines, Thailand, India and even United States. Poverty is exaggerated by exposure to domestic violence and ethnic conflicts. Dysfunctional family systems also contribute to trafficking and sex tourism.

In a related UN report, it is stated that Thailand ranks third after India and USA in the number of child prostitutes. UN stated that about 400,000 women and children are believed sexually-exploited in India; between 244,00 and 325,000 in the USA; 200,000 in Thailand; 175,000 in eastern and central Europe; 100,000 in Brazil and 35,000 in West Africa. The report also stated that sex tourism accounted for 10 to 14 percent of Thailand's GNP from 1993 to 1995.

The statistics on trafficking and sexual exploitation of women and minors are overwhelming. Even if they are exaggerated, it does not reduce by any ounce the magnitude of these social issues. Every day, every hour and every minute - in several parts of the world - a woman or a child is being abused physically, sexually and commercially. After 20 years of interpreting the CRC on many national levels, the end result is still wanting. As Swedish ECPAT Director-General Helena Karlen was quoted as saying: "There will be no Volvo cars, if there were no buyers."#

Kenya plunges into violence

An escalating violence in Kenya and an unsettling political instability in South Africa threatens to torpedo the continent's chances for a bright economic future. Aged-old problems of poverty, petty tribalism and unbridled corruption have resurfaced with greater vehemence.

The picture of Kenya as an "island of stability" was recently shattered by the eruption of violence that reportedly claimed some 500 lives. It seems hard to believe that Kenya, a model of political stability and economic growth could suddenly find itself in the throes of chaos and disorder. The international repercussions among powerful countries and major aid donors had been tremendous, in particular the United States. As reported in the major foreign press, Kenya is undeniably a leading star in East Africa. It has held regular elections since its independence in 1963, and its economy grew at 6.4 percent in 2007. The explosion of violence following its presidential elections last month changed Kenya's position of stability. The United States, which reportedly gives US 1 million dollars in aid considers Kenya its main bulwark in its anti-terrorism campaign, especially against jihad terrorists sneaking in from neighboring Somalia.

The immediate cause of violence in Kenya begun with a civilian coup by Mwai Kibaki, following a close race with challenger Raila Odenga last Dec. 27 general election. Three days after the voting, paramilitary police stormed the Kenyatta International Conference Center where the vote counting was taking place, and where Odenga had a clear lead. Then the Commission on Elections declared Kibaki winner and was sworn the same day. It was then that popular resentment against Kibaki's tribe, the Kikuyu, was unleashed like the breaking of a dam. Although the Kikuyu tribe consist only of 22 percent of the population, it has enjoyed a dominant political position in government and business.

Kibera, the largest slum area where a million people live in extreme poverty became the center of violence. Deep in poverty, disease and distress Kibera was waiting to ignite its fire of discontent. During the week of violence, heavy international pressure came upon Kibaki and Odinga to reach an agreement. But an African negotiation attempt collapsed last week and supporters of Odinga in Nairobi have shown impatience. They are demanding that Kibaki resigns from the "stolen presidency". They are also demanding news elections.

Analysis by Time magazine on Africa's distress points to poverty as the root cause of all maladies. Nowhere in the world, it reports, is the gap between the rich and the poor wider than in Africa. Despite the bright hopes in economic growth owing to its natural resources - and entry of major powers like China in the investment field, the number of poor has doubled. The other malady eating away Africa's economic gains is corruption, where Kenya finds itself at the bottom rank of most corrupt countries.

Kenya simply mirrors the rest of Africa in terms of being most corrupt, where 36 out of 52 countries are openly accused of graft and corruption. As reported, Nigeria leaders for instance were accused of stealing US 400 billion between 1960 and 1999. In South Africa, corruption scandals involving political and business elites are exposed frequently. The most famous is that which concern the newly-voted leader of the African National Congress, Jacob Zuma. Time reported that he was indicted on one charge of racketeering, one of money laundering, two of corruption and 12 of fraud involving bribes by French arms seller. He denies all these charges.

While many African countries have succeeded in creating democratic institutions and that democracy actually works in many countries, these institutions are fragile as shown in Kenya's recent general elections. One man with military support can easily grab power and pummel a nation in a spiral of violence.