New Book on Poverty and Development in Fragile States

poverty development fragile statesI am pleased to announce the publication of my new book on fragile states — Betrayed: Politics, Power and Prosperity (Palgrave Macmillan). The book focuses on the biggest challenges in the development field today: how to create inclusive societies, equitable governments, and dynamic economies that will give the poor the opportunity to accumulate the means and skills to control their own destinies. Up to now, change has proved illusive in most parts of the world, leaving three billion people — roughly one-half the population in the developing world — disadvantaged. The concrete suggestions described in my book are targeted at political, economic, and civil society leaders as well as scholars, practitioners, policymakers, and students.

The book combines the latest research on poverty and state building with my personal observations drawn from many years working in the developing world, and covers a far wider range of issues than comparable titles. These include social exclusion processes, ideology, elite incentives, strategic urbanization, connectivity, livelihood factors, power dynamics, transaction costs, social networks, and business linkages.

Former President of Ghana Jerry Rawlings wrote the foreword, calling the book “a compelling and eloquent argument for empowering all citizens, especially the poor.”

I hope you will share this information with your colleagues and friends. You can order a copy from Amazon. Continue reading

Debating stable and peaceful societies

Today, the President of the UN General Assembly hosts a debate on ensuring stable and peaceful societies within the post-2015 development agenda.

I am moderating tomorrow’s session that looks at the global partnership that would be needed if countries are to reduce violence, and tackle the instability that is a threat to the future of a significant proportion of the global population.

As background for the debate, here’s a memo I prepared for the PGA. A long list of possible goals and targets is now on the table in this area (see pages 149-159), but there are deep disagreements among member states as to whether this is an area that should be prioritised within the new goal framework.

My advice:

  1. Recognise this is a genuinely universal agenda – one that affects rich, middle income, and poor countries and where the West, in particular, has a responsibility to demonstrate it is serious about reducing the stresses that destabilise poorer countries.
  2. Give the victims and survivors of violence a voice in this debate, and pay greater attention to the needs of those whose lives are defined by instability (a problem that goes far beyond so-called fragile states).
  3. Draw on the track record of countries that have bounced back from conflict or shown that they are able to reduce violence, turning the debate into one about solutions, not just aspirational targets.

Read the whole report here.

G20 gives U.S. until end of year on IMF reform

When finance ministers and central bankers from the G20 major economies met last week in Washington, they rapped the United States on the knuckles for its failure to ratify reforms of the International Monetary Fund. The reforms, which leaders from around the globe agreed in 2010 but which require U.S. Congressional ratification to be implemented, would increase the voice of emerging market economies on the IMF’s board and strengthen its general account (what the IMF calls “quotas”). In the G20 final communique, the global financial chiefs expressed how “deeply disappointed” they were, and fired off a stern warning, giving the U.S. until the end of the year before they request the IMF to proceed on reform (without the United States, to insert the subtext). Given that the U.S. was instrumental in founding the IMF and has always been its largest shareholder and exercised a veto over major institutional changes, the warning is serious stuff. Whether or not the IMF can actually do anything without the buy-in of its largest shareholder remains in question, but certainly the rest of the world is growing impatient with the extended delay.

In a recent analysis, I point out that the delay is undue. The IMF has traditionally enjoyed support from Democrats and Republicans, and the current proposal for reforms builds upon a process that began under the George W. Bush administration. The IMF helps to maintain global financial stability and prevent and mitigate economic crises, something both parties can get behind. The reforms strengthen the IMF’s core capabilities and improve its governance, equipping the IMF to better prevent and manage economic crises of the twenty-first century and creating a platform for constructive relations with emerging market economies such as India, Brazil and China.

And despite some claims to the contrary, the reforms do not increase U.S. financial commitments, because the new U.S. contribution to the IMF general fund would be offset by an equal reduction in its commitment to another IMF fund (the New Arrangements to Borrow). The Congressional Budget Office, Congress’ official budget scorekeeper, estimates the technical cost of implementing the quota reforms at $239 million – but also estimates that shifting the funds away from the NAB would save $693 million over the same time frame. So the reforms don’t increase US financial commitments, and the US might actually recoup money on account maintenance costs. A pretty good deal.

The case for the reforms seems obvious, so why the delay? The toxic political environment in Washington is the primary culprit. The Obama administration has not made the case for reforms as clear and compelling as it could and should, and delayed proposing them, while Congress is loath to give the Administration any kind of victory. And with the rise of tea party influence in the Republican party and an increasingly isolationist American public, Congressional blockers may actually reap political rewards. In return for ratifying IMF reforms, some Republicans are demanding a delay in the Obama administration’s proposed rules to limit political activities of non-profits. (If that seems like a a non sequitur, that’s because it is. Such is political deal-making in today’s Washington.)

All of this is bad news for the U.S., and bad news for the world. The fact is that for now and the foreseeable future, the U.S. is still the world’s preeminent power. And that power must be exercised with commensurate responsibility. As the G20 warning made clear, the rest of the world will not wait indefinitely. They are already eying a plan B if the U.S. does not ratify the IMF reforms. Whether they act without the U.S. remains to be seen, but everyone loses if the U.S. does not step up to lead the modernization of an international system that emphasizes cooperation over competition. The IMF is an early but important step in a revitalized, rules-based global order that can manage the challenges of the twenty-first century.

 

Climate Change is not a debate: It is a struggle that pits survivors against fossil fuel profiteers

SOUTH AFRICA COP17 CLIMATE CHANGE CONFERENCE

Climate change is not a debate.  The scientists couldn’t be clearer about how real and how harmful it is. But governments are still not basing their commitments on what is needed, and fossil fuel companies remain confidently fossilised in their economic outlook and plan.

So why haven’t the facts haven’t driven the policy? In part, it’s the collective action problem. But let’s not be naive: there are billionaires getting richer and richer from fossil fuels. For them, the collective failure to responsibly manage fossil fuel reserves isn’t a failure at all, it’s a hugely profitable success.

Climate change is impossible to make sense of as a debate, precisely because it is not a debate. It’s a struggle.

As has been said of “failed states”, you can only understand them if you understand who is doing well out of the so-called failure.  The same is true of “failed global politics”: The broken-down Warsaw talks sponsored by the coal industry were a huge success for the sponsors. Don’t assume that politicians who second-guess scientists are being stupid – look at their donors, and you’ll find many of them are being very clever. Likewise the “sceptical” think tankers paid for from oil tankers. In successfully ensuring a recurring “not yet” to any decent plan to tackle climate change, the fossil fuel lobby make the tobacco industry look like amateurs. As Democracy Now’s Amy Goodman puts it, “fossil fuel money is drowning democracy”.

The fossil fuel lobby is determined to hold out. But they are beatable. We’ve seen them make one tactical retreat already. Those who didn’t want climate change to get in the way of their irresponsibility used to say that climate was a myth; now they are starting to say it’s inevitable. It’s a shameless pivot from denialism to fatalism, of course, a clever move that will buy the fossil fuel lobby more time. (And time is money.) But that they have been forced to pivot is an indication of weakness, a chink in the armour.

The fossil fuel lobby is weakened too by the growing movement pushing for other parts of business to separate themselves from, and start to take on, the fossil fuel lobby: we’ve seen the wiser parts of the finance industry start to connect the sustainability of their investments with the sustainability of the climate, and to recognise the risks inherent in betting on unlimited carbon use; and we’ve seen the wiser parts of the food industry – an industry which both contributes to and suffers from climate change – start to look for ways to reduce their carbon footprint and protect the agricultural and water resources on which they depend. As they start to shift, the fossil fuel lobby will become ever more isolated.

But what most threatens the fossil fuel lobby is the power of survivors as campaigners. Of course, this is not the first time that affected people have spoken out about climate change, but one of the consequences of climate change is that the numbers of the affected grows ever larger. The raw, brutal, damage to people wrought by climate change has been a spur for re-energised powerful grassroots activism, driven by experience, by groups ranging from Nicaraguan coffee growers to Manilla slum dwellers. Communities hit by extreme weather in countries like the UK and US are getting more organised too. And increasingly the governments of the poorest countries are speaking on behalf of their people. Diplomats have stopped being diplomatic. The ecological has become personal. This movement of the affected is still inchoate, but it is the most important force for action on climate change. Just as people affected by HIV took on the pharmaceutical industry (and, ultimately, and with great sacrifice, won), so too the people most affected by climate are taking on the power of the fossil fuel lobby. They are making it clear that this is a struggle between interests. And they are calling upon others to choose a side.

Sustainable development goals, targets and…clusters?

The UN’s Open Working Group on Sustainable Development Goals (OWG) will meet next week to discuss potential goals and targets to replace the Millennium Development Goals (MDGs), which expire in 2015. The OWG and its co-Chairs deserve praise for making significant progress in an incredibly complex process involving an overwhelming number of issues and actors.

The OWG co-Chairs have admirably attempted to reduce a long list of development priorities into 8 “clusters” for discussion (issued last week), following reactions to the 19 “focus areas” they released last month. Many asserted that 19 is too many, compared to the 8 goals of the MDGs. Though the co-Chairs are careful to caution that the focus areas are not goals – and that the clusters are simply for discussion – these caveats are generally ignored. The co-Chairs themselves have indicated they would like to have a better sense of the sustainable development goals and targets by the end of next week. Under considerable pressure to provide structure, producing the 8 clusters is a natural attempt to meet these demands. But any clustering of issues at this point will inevitably raise questions.

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