Thursday, November 13, 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)

Tuesday, November 11, 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.)

Friday, November 7, 2008

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)

Tuesday, November 4, 2008

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.#

Sunday, November 2, 2008

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)

Thursday, October 30, 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.#

Wednesday, October 29, 2008

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.#