ActionAid tax campaigners meet Timms - PICTURES AVAILABLE

Campaigners demanding tax justice for developing countries were able to put their point of view to a minister this morning (Tuesday 1 September), when Stephen Timms, Financial Secretary to the Treasury, met them on the steps of the Treasury building in Horse Guards Road, Westminster.

Anna Thomas of ActionAid explained to the minister that a new group, the Outlandish Revenue Service, would be campaigning for international action to curb tax dodging by multinational corporations. Tax evasion currently deprives poor countries of more revenue than they receive as international aid.

The campaign's first aim is to ensure that G20 finance ministers, who meet in London later this week, agree by the end of the year on tax proposals which will benefit developing countries.

Mr Timms said: 'At a time of such an unprecedented economic crisis it is important that we should support the interests of developing countries by making sure they receive the taxes due to them.'

The Outlandish Revenue Service is a group brought together by ActionAid, and launched today with the promise that it will 'will go to ludicrous lengths to get tax justice for developing countries'.

Campaigners in suits and bowler hats, carrying red briefcases, held a 'recruiting drive' outside the Treasury building in London's Whitehall. As Treasury staff arrived for work this morning they were given cards offering exciting jobs (unpaid, alas) tracking down the billions of dollars that developing countries lose through tax evasion.

If even a fraction of the lost tax were recovered, health, education and food production in poor countries could be transformed.

Anna Thomas said: "There is now a lot of momentum in the G20 on international tax cooperation. The UK government, which has played a leading role, must press ahead on the very important commitment that the proposals should deliver benefits to developing countries."

A YouGov survey commissioned by ActionAid and released today found that most adults in the UK are unaware of the scale of illegal tax evasion by multinational companies operating in poor countries. Most of those questioned were surprised to learn that poor countries lose more money to tax evasion than they receive in aid. Once they knew this, nearly two-thirds agreed that the UK should help developing countries to clamp down on tax-dodging.

BONN CLIMATE MEETING: MISSED OPPORTUNITY, ALL EYES ON UNGA, G20 and Bangkok

Bonn, Germany –Delegates in Bonn missed an opportunity to speed up progress of climate negotiations ahead of a series of high-level political meetings next month, WWF said.

Negotiators who gathered in Germany for another round of United Nations Framework Convention on Climate Change (UNFCCC) talks concluding today made some steps forward, but they didn’t reach the speed needed to achieve a strong climate agreement in Copenhagen at the end of this year.

A key stumbling block was still the level and the source of financial support for poor countries. The growing number of countries supporting the idea of Copenhagen delivering a legally binding outcome was a positive sign.

The attention now shifts to September when a series of crucial political meetings takes place: the United Nations General Assembly, the Major Economies Forum, and the G20, all dealing with climate change.

“We would have liked the Parties of the UNFCCC to use the opportunity and take initiative. But delegates spent too much time arguing over procedures and technicalities. This is not the way overcome mistrust between rich and poor nations,” said Kim Carstensen, the head of WWF Global Climate Initiative.

“Delegates are kept back by political gridlock. The political leaders must now unblock the process.”

The recent commitments during the G8 and MEF meetings on 2°C were reflected in the climate talks in Bonn, but they were not enough to set the negotiations on a pathway to success. ”
“If the meetings of the General Assembly, the Major Economies Forum and the G20 in September are successful in building the political momentum needed, the UN negotiations can progress much faster at the next meeting in October in Bangkok.”

WWF would like the G20 meeting in late September to make a commitment to 3-4 viable means of mobilizing resources at the scale of $160 billion per year, in order to set the stage for success in Copenhagen.

“Without commitments on funding, it is impossible to design a solid climate agreement. It is like asking a manager to run a company without telling him what his budget is.”

BUDGET SHORTFALL THREATENS UN’S ABILITY TO FEED MILLIONS WORLDWIDE

Millions of hungry people around the world will not receive food aid from the United Nations World Food Programme (WFP) due to a "dangerous and unprecedented" $3 billion budget shortfall this year, the head of the agency has warned.

WFP is hoping to reach 108 million people in 74 countries this year with food aid, but it expects to receive only $3.7 billion of the $6.7 billion needed for 2009.

"We are actively cutting $3 billion of our programme – which means a reduction in rations and programmes throughout the world, including those to the world's most vulnerable people," WFP Executive Director Josette Sheeran told reporters yesterday in Washington, ahead of meetings at the White House.

In Bangladesh, for example, the agency sought to feed 5 million people this year, but must now cut back to reaching only 1.4 million, with a school feeding programme only feeding 70,000 children out of the original target of 300,000.

Ms. Sheeran welcomed the recent $20 billion pledge to boost global food security made by the so-called Group of Eight (G8) nations, which shows the industrialized world "takes the food security issue seriously."

But she cautioned that "we must also keep pace with growing emergency needs. The problem is not all about agricultural yields; the challenge is people cannot get access to food – whether because of poor infrastructure or because they can't afford it."

The food crisis is still raging in the developing world, where high food prices are exacerbated by the impact of the current financial crisis, WFP said.

Data from the UN Food and Agriculture Organization (FAO) shows that in most developing countries, food prices are higher today than they were one year ago, at the height of the food crisis.

The WFP head was in the United States capital to urge policy-makers to keep urgent hunger needs as a high priority as they find long-term solutions to food security.

She also called for the upcoming Group of 20 (G20) gathering in Pittsburgh, United States, to "take action not only on the financial crisis, but on hunger."
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ECONOMIC AND FOOD CRISES THREATEN RECENT DEVELOPMENT GAINS – UN REPORT

Secretary-General Ban Ki-moon has called on rich and poor nations to boost efforts to fight poverty and hunger after a new United Nations report shows that recent advances are being threatened by the global economic and food crises.

The report, launched today in Geneva by Mr. Ban, warns that, despite many successes, overall progress has been too slow for most of the Millennium Development Goals (MDGs) – the globally agreed targets to halve poverty, hunger and a host of other social and economic ills – to be achieved by the target date of 2015.

"This year's Millennium Development Goals Report delivers a message that should not surprise us but which we must take to heart: the current economic environment makes achieving the goals even more difficult," Mr. Ban told the high-level segment of the Economic and Social Council (ECOSOC).

The Secretary-General noted that higher food prices in 2008 have reversed the nearly two-decade trend in reducing hunger. In addition, momentum to reduce overall poverty in the developing world is slowing; tens of millions of people have been pushed into joblessness and greater vulnerability; and some countries stand to miss their poverty reduction goals.

Further, the target for eliminating gender disparities in primary and secondary education by 2005 has already been missed, he noted. Meanwhile, 1.4 billion people must gain access to improved sanitation by 2015 in order to achieve the sanitation target.

"We have been moving too slowly to meet our goals," said Mr. Ban. "Yet the report also shows that when we have the right policies, backed by adequate funding and strong political commitment, actions can yield impressive results."

The new publication, based on data from over 20 organizations both within and outside the UN system, is considered the most comprehensive global MDG assessment to date. It finds, among other things, that the number of people living on less than $1.25 a day decreased from 1.8 billion to 1.4 billion in the period from 1990 to 2005.

However, major gains in the fight against extreme poverty are likely to stall, indicators show, although data are not yet available to reveal the full impact of the recent economic downturn. In
2009, an estimated 55 million to 90 million more people will be living in extreme poverty than anticipated before the crisis.

At the same time, the Secretary-General noted that the report does show some progress. Fewer people today are dying of AIDS and many countries are implementing proven strategies to combat malaria and measles, two major killers of children.

"We are edging closer to universal primary education. We are well on our way to meeting the safe drinking water target," he said. "We can and must build on these foundations.

"In Africa and across the developing world, we have abundant evidence that aid can help transform lives. But delays in delivering aid, combined with the financial crisis and climate change, are slowing progress," he stated.

Mr. Ban recalled that the Group of Eight (G8) and Group of 20 (G20) nations have made specific commitments to increase financial and technical support to developing countries by 2010 to achieve the MDGs.

"Those commitments include raising annual aid flows to Africa, yet aid remains at least $20 billion below the Gleneagles targets," he noted. "I urge the G8 to set out, country by country, how donors will scale up aid to Africa over the next year."

The Secretary-General also urged donor countries to meet existing pledges on aid for trade, a crucial component in improving trade competitiveness of developing country producers and exporters.

Speaking at the World Trade Organization (WTO) Second Global Review on Aid for Trade, also in Geneva, he noted that the aid for trade initiative has made good progress in the three years since its launch. The April G20 Summit pledge of $250 billion for trade financing could lead to a significant increase in the $25 billion that aid for trade received in 2007.

However, the global financial and economic crisis has had a severe impact on demand, and it is now widely predicted that global trade will decline by 10 per cent this year, he added. "Unless the direction of the crisis is reversed soon, it will further unravel the progress that developing countries have made over the past two decades in reducing poverty."

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Poor Nations Desperate For Cash, World Bank Says

In an interview with the Globe and Mail, World Bank President Robert Zoellick says "... 'If the demand for our lending stays at the pace it looks like it is going to be at, it is more likely than not that we will need some sort of increase.'... Zoellick acknowledged that it's 'a challenge' to get the developed countries to consider the needs of others at the same time their own unemployment rates and debt levels are fast rising.

Demand for World Bank loans over the next year or more appears likely to be 'very, very high' because the ripples from the global recession are only now being seriously felt in Africa and other poorer regions.... 'In sub-Saharan Africa, you have no cushion,' Zoellick said. 'The harsh reality is they will feed the boy before the girl, that if they have some ability to keep someone in school, they will keep the boy and not the girl.'...

The bank's trade finance fund... is still short of the G20's goal by about $1.5-billion, Zoellick said. The idea is to raise pledges of about $5-billion to finance trade worth $50-billion over the next three years.... 'We need to build multiple poles of growth,' Zoellick said...." [Globe and Mail (Canada, 6/7)/Factiva]

City workers asked to dress down for charity not anarchists by ActionAid

As city workers get ready to dress down on April 1^st to avoid antagonising any anarchists, international development charity ActionAid is asking them to turn the day into a force for good, pay a fine and give any money raised to charity.

Richard Turner, ActionAid’s Fundraising Director said: “It’s an ill wind that blows nobody any good. City workers can show their commitment to fighting poverty by paying a fine for wearing casual clothes.

“We normally suggest donating £2. But despite the recession, city workers can still probably afford to add some noughts to that. Or they can go one better and sign up to a long term donation by sponsoring a child.”

ActionAid believes that the world is in crisis and that the leaders of the G20 have a unique opportunity to make far-reaching reforms when they meet in London on Thursday.

ActionAid also believes that business has a major role to play and can be a force for good when people’s rights are placed at the centre of their concerns.

Richard Turner concluded: “Governments must take the crucial steps needed to rebuild the global economy in a way that delivers decent jobs and services and eradicates the scourge of global poverty and inequality.

“Individuals and businesses can do their bit too, ensuring families and communities in the world’s poorest countries become more resilient. They can give to charity, green their lives and businesses and campaign for lasting change.”

UN-AU PEACEKEEPING FORCE CARRIES OUT ANTI-BANDITRY PATROLS IN DARFUR

In spite of the overall calm security situation, the United Nations-African Union (AU) peacekeeping mission in Sudan's war-ravaged Darfur region is continuing its patrols in the face of banditry activities.

The military forces and police of the mission, known as UNAMID, have conducted dozens of patrols in and around villages sheltering internally displaced persons (IDPs).

Sudanese police reported renewed fighting between two tribes over a disputed water point last week.

UNAMID has been distributing 45,000 litres of water a day to the Zam Zam camp, which continues to receive new waves of IDPs. Distributions began on 11 March to support non-governmental organizations (NGOs) to help those who have just arrived at the camp.

The mission intends to continue its distributions – which total nearly 500,000 litres to date – until a long-term solution is found.

For its part, the UN Children's Fund (UNICEF), in conjunction with aid partners and the Government of Sudan, has dug nine shallow wells and drilled three boreholes as water sources for the Zam Zam camp.

Sudan decided to suspend 13 NGOs on 4 March, immediately after the International Criminal Court (ICC) issued an arrest warrant for President Omar Al-Bashir for alleged war crimes. The operations of three national NGOs have also been suspended.

In a letter sent to the leaders of the so-called Group of 20 (G20) nations ahead of their summit next week, Secretary-General Ban Ki-moon expressed his concerns about the expulsion of the aid groups, which assist nearly five million Darfurians in need, over half of whom are IDPs.

Addressing the General Assembly in an informal meeting today, Mr. Ban said that in the wake of the Government's decision to expel the NGOs, the UN and Sudanese authorities have agreed to assess the situation in three states in Darfur to identify aid gaps. He stressed that capacity on the ground is insufficient to sustain relief activities in both the short and medium term.

Last week, a senior UN humanitarian official called on the Government to respect existing agreements and its own laws on the operation of relief groups in Darfur, with the ousting of the 13 aid agencies resulting in "significant" threats to the dependent population.

"We want to engage in transparent and productive dialogue with the Government based on these laws and agreements," Rashid Khalikov, Director of the New York section of the Office for the Coordination of Humanitarian Affairs (OCHA), told the Security Council.

He noted with additional concern that on 15 March, Mr. Al-Bashir spoke of the possible departure of all foreign humanitarian organizations in Sudan in a year's time, even if the violence and displacement in Darfur continues.

An estimated 300,000 people have died and another 3 million have been displaced in the western region of Sudan, where rebels have been fighting Government forces and allied Arab militiamen, known as the Janjaweed, since 2003. Around 4.7 million people in the region depend on lifesaving aid.

Mr. Khalikov said the expulsion of the 13 organizations had been followed by an increase in violence against UNAMID and aid groups, along with the seizure of humanitarian assets by the Government.

In a related development, Major General Pagan Jung Thapa, Force Commander of the UN Mission in Sudan (UNMIS), visited UNAMID headquarters yesterday to meet with his UNAMID counterpart, General Martin Luther Agwai, and with AU-UN Joint Representative Rodolphe Adada to discuss issues of cooperation and collaboration.
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World Bank To Offer $10-11 Billion Trade Finance Pool At G20

A trade finance facility to be discussed by the World Bank and its affiliates at the G20 summit of leading nations on April 2 will offer $10-11 billion in funds, a senior trade source said on Wednesday.

Because funds in the 'global trade finance liquidity pool', mainly for short-term use, can be rolled over, the facility could generate an additional $50 billion a year, the source said after a meeting of experts hosted by the World Trade Organization (WTO).

The trade finance market is reportedly $100 billion short under the financial crisis. The WTO is concerned about shrinking international trade under the financial crisis and has been backing the trade finance support initiative.

Corporations and lenders have clamored for increasing trade insurance covering importers' payments. Trade finance representatives from the G20 nations will meet in Washington next Wednesday to discuss ways to bolster the framework.

Another proposal envisions a multilateral reinsurance plan designed to defray the risks taken on by a given country's trade insurer. Nine Asian economies, including Japan and South Korea, have agreed to such a tack.

UN SPOTLIGHTS FIVE KEY AREAS TO SPUR SUSTAINABLE ECONOMIC RECOVERY

UN SPOTLIGHTS FIVE KEY AREAS TO SPUR SUSTAINABLE ECONOMIC RECOVERY
New York, Mar 19 2009 10:00AM

Robust investment into five key sectors, from renewable energy to sustainable transport, could help revive the global economy and boost employment while accelerating the fight against climate change, environmental degradation and poverty, according to the United Nations.

The Policy Brief for a Global Green New Deal, developed by economists and the UN ahead of the G-20 meeting of world leaders in London in early April, highlights the benefits of investing a significant amount of the $3 trillion-worth of global stimulus packages in five areas.

According to a news release issued by the UN Environment Programme (UNEP), these areas include raising the energy efficiency of old and new buildings, as well as renewable energies including wind, solar, geothermal and biomass.

The three other areas are sustainable transport including hybrid vehicles, high-speed rail and bus rapid transit systems; the planet's ecological infrastructure including freshwaters, forests, soils and coral reefs; and sustainable agriculture including organic production.

"The G-20 meeting needs to be a milestone in terms of focusing investments that address the crises of today and those emerging from climate change, natural resource scarcity and lack of decent employment for close to 2 billion unemployed or underemployed people over the coming decade," stated UNEP Executive Director Achim Steiner.

"Take energy use in buildings. It can already be cut by 80 per cent in a cost-effective manner using existing technologies," he noted, adding that additional investments in this sector would not only stimulate the recovery of the construction and allied industries but also generate tens of millions of jobs.

The report also calls for specific measures to help poorer countries reach the anti-poverty targets with a 2015 deadline, known as the Millennium Development Goals (MDGs), and green their economies. The measures include an expansion of microcredit schemes for clean energy and the greening of overseas development aid.

"The large-scale stimulus investments planned over the coming months and the next two to four years represent a once-in-a-lifetime opportunity to make a transition to a low-carbon, resource-efficient society – this opportunity must not be lost," said Mr. Steiner.

Pavan Sukhdev, team leader of the UNEP Green Economy initiative, stressed that these recommendations should be discussed over the next few months by world leaders at every major global forum including the G-20 Summit.

"The sums of money being lined up to stimulate the global economy, unheard of only 12 months ago, will either mortgage the world's future based on a 'business as usual' model or deliver an opportunity to transition to a new and more sustainable path," he stated.

"That courageous choice needs to be made now and accelerated over the coming weeks and months," he added.
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Do What We Say, Not What We Do:

Having packed their bags and left Horsham, the finance ministers of the G20 - and indeed their political chiefs planning to meet for the main summit at Downing Street on 2 April - might want to plan a trip to Quito, capital of Ecuador, where they can witness a remarkable protectionist experiment at first hand.

No other nation may have reacted to the economic crisis with such naked defiance as Ecuador - but she is hardly alone. Researchers at the World Bank say that, since the last G20 leaders' summit in Washington, several countries, including 17 of the G20, have implemented 47 major measures whose effect is "to restrict trade at the expense of other countries". Of the G20 group, only Japan, Saudi Arabia and South Africa were given a clean bill of heath.

More broadly, World Bank officials have identified 78 often inventive actions in restraint of trade. They include: Russia's increased tariffs on used cars; the European Union reintroducing export subsidies for butter, cheese and milk powder; Argentina's imposition of non-automatic licensing requirements on auto parts, textiles, TVs, toys, shoes, and leather goods; Indonesia's requirement that five categories of goods (including clothes, footwear, toys, electronics, food and drink) would be permitted through only five ports and airports.

The World Bank talks about "incipient but worrisome trends", though it concludes that, for now, the global collapse in demand and shrinking trade finance has had a more significant effect than new tariffs and quotas. The IMF says world trade will decline by 5 per cent this year - the first decline since 1982 and the largest reduction since the Second World War.

The best that can be hoped for from the Downing Street summit next month, perhaps, is a renewal of November's pledge not to increase the level of protectionism prevailing in the world today - and perhaps persuade the US to conclude its knife-edge bilateral trade treaties with nations such as South Korea and Colombia. All concerned will commit once again to carry on with the Doha talks, though these seem further away from consummation than ever. The WTO has promised a "name and shame" paper cataloguing crimes against free trade by G20 members. [Sean O'Grady, The Independent]

Japan To Lend $5 Billion For Developing Nations' Green Projects.

Japan said Saturday it will launch a $5 billion lending facility to help Asian and other developing countries improve environmental infrastructure. The program was unveiled by Japanese Finance Minister Kaoru Yosano during a two-day meeting of the G20 finance ministers and central bankers.

The aid covers such projects as solar and wind power generation, energy saving, water supply and sewerage systems, and urban transportation systems.

Japan plans to work together with the Asian Development Bank (ADB) and the World Bank as well as commercial banks in providing the aid.

Japan is also mulling a 'Green New Deal' plan at home that would address environmental problems while helping pull the country out of recession.

Environment Minister Tetsuo Saito is expected to announce a push for wider use of solar panels at schools and government buildings to be included in an economic stimulus package now being drafted.

BRIC Nations Call For More Balanced IMF.

Brazil, Russia, India & China (BRIC) Saturday sought a re-balancing of representation on the executive board and the International Monetary and Financial Committee of the International Monetary Fund (IMF). The demand was made at the G20 finance ministers' meeting being held near London.... They also asked for speeding up of the second phase of voice and representation reform in the World Bank group by April 2010.

The BRICs said it was necessary for developing countries to have a greater voice and representation. Similarly, leadership of the IMF and World Bank should not be subject to 'nationality or regional considerations.'

In related news, it was reported that the G20 summit should find ways to give other states a say in decisions by the world's richest to mitigate disasters like the US mortgage loan crisis, Russian President Dmitry Medvedev said Saturday.

Reiterating Russia's view that global finance needs sweeping reform, Medvedev said new tools and rules were needed 'so that the problems which start in one state will not trigger the hardest chain reaction' in others..

G20 Backs Rescue Funds Boost As Crisis Summit Looms.

G20 finance ministers promised money on Saturday to rescue troubled emerging market economies. Ministers from the world's largest economies also pledged to regulate hedge funds and start closer checks on credit ratings agencies to prevent a repeat of the financial crisis.

'We are committed to deliver the scale of sustained effort necessary to restore growth,' the ministers said in a statement promising extra money for the International Monetary Fund (IMF) and regional lenders such as the Asian Development Bank (ADB).

Besides the IMF and ADB, the G20 finance ministers said they would review the capital needs of African Development Bank (AfDB) and the Inter-American Development Bank (IDB) at the annual meeting this year and called on the European Bank for Reconstruction and Development (EBRD) to 'promptly review its statutory capital constraints to give leeway to interventions'. This was urgent because Eastern European economies are in crisis.

It has been reported that the technical details of the deal to provide the [IMF] with additional resources were not finalized at the weekend but Japan has already signed a deal with the fund to provide a loan worth $100 billion. The US is seeking to increase the funding by extending the New Arrangements to Borrow facility, under which 26 of the fund's members agreed in 1998 to lend it up to $50 billion at times of crisis.

Spain's portion of a possible $250 billion increase in funding for the IMF would be in the order of $3 billion, Spanish Finance Minister Pedro Solbes said Saturday. Solbes said the cash would come from central bank reserves.

Manuel Pushes For A More 'Multilateral' Fund.

The reform of the International Monetary Fund (IMF) is an essential part of the battle to stem a drift towards nationalism and protectionism, South African Finance Minister Trevor Manuel has told the FT.

At the G20 finance ministers' meeting, South Africa will call for developing countries to be given greater weight in the governance of the IMF, but Manuel also called for the creation of a new executive body in which ministers and central bankers would have greater powers, a change he calls 'pivotal'.

South Africa and Australia are chairing a G20 committee on the IMF. Manuel is separately chairing a panel of experts looking at ways to make the institution a more effective global financial watchdog.

In a related story, Xinhua reports that Chinese Premier Wen Jiabao called on Friday for reforms of the internal governance structure of the IMF to fend off financing and investment risks, balance rights and obligations and pay more attention to the interests of developing countries.

EU Finance Ministers To Back Doubling Of IMF Funds At G20.

Documents have showed that EU finance ministers will back a call from the International Monetary Fund (IMF) to double its funds to $500 billion at the G20 finance ministers' meeting today.

According to Reuters, EU member states support a doubling of IMF resources and are ready to contribute to a temporary increase, if needed,' it said. It said the increase should be funded by direct borrowing from members, especially those with large currency reserves.

G20 countries are likely to more than double the IMF's $250 billion resources for aiding crisis-struck members at their April 2 summit, the UK's envoy to the group said Sunday.

Mark Malloch Brown said that his talks with members of the G20 developed and developing nations showed a commitment to bring the IMF's available aid funds to 'at least' $500 billion. He said $500 billion was 'the minimum needed' to reassure markets that the world's leading economies were taking action to counter the global crisis.

In related news, the BBC reports that the UK will contribute to a new World Bank fund for the poorest countries, as confirmed by Gordon Brown on Monday. The fund calls on the richest nations to finance it with 0.7 percent of the money they have used to bail out the banks.

The prime minister will address a two-day conference in London a month ahead of the G20 summit of the world's biggest economies. The conference, being billed as a 'poverty summit', has been called to ensure the poorest people are not forgotten in the response to the global economic downturn.