Month: June 2005

EU Freezes Human Rights Funding

BRUSSELS – Unless the European Union reconsiders a June decision, the 50th anniversary of the Universal Declaration of Human Rights this December could be a major disappointment. Fearing legal liability after a European Court of Justice decision that questions its budget management, the EU’s administrative commission has frozen financial support for a wide range of human rights efforts around the world.

The action threatens the survival of hundreds of programs, including support of Nigerian advocates for democracy, medical and legal assistance to victims of torture in Turkey, prevention of violence against women, rehabilitation of street children in Latin America, and independent human rights monitoring in Kosovo. read more

Russia Faces a Crime Revolution

MOSCOW – Big money is a major factor in Russian politics as the newly – sometimes illicitly – rich gain control over democratic institutions. A recent example was the April mayoral victory of a controversial businessman with a criminal record in Nizhny Novgorod, the country’s third largest city. Afterwards, the winner, Andrei Klimentiev, was arrested for bribing voters and violating an earlier court order to leave town.

Fearing a criminal takeover, President Yeltsin has backed legislation to prevent criminals from being elected or getting government jobs. The Interior ministry estimates there are now 12,000 criminal organizations in Russia, and the Center for Strategic and International Studies warns that the country "is on the verge of becoming a crime-dominated oligarchy." Russian bureaucracy is a perfect playground for corruption: Salaries are low, and many officials accept bribes. read more

World Bank Questions Washington Consensus

LONDON – Many of the tough conditions imposed on poor, debt-ridden countries by international financial institutions have been challenged by the World Bank’s own chief economist. In a little-noticed January speech, Joseph Stiglitz charged that policies such as trade liberalization, deregulation, and privatization are "sometimes misguided" and "neglect fundamental issues."

Stiglitz criticized what he described as the Washington Consensus, which holds that private markets will produce efficient allocations and growth if government gets out of the way. "I do not believe in blanket statements like, ÔGovernment is worse than markets’," he said. "I have argued that government has an important role in responding to market failures, which are a general feature of any economy." He also attacked the IMF’s obsession with inflation control, criticized policies that create unemployment in the name of efficiency, and argued that budget deficits are acceptable if they involve wise spending. read more

 Global Tax Gets Another Look

LONDON – Proposals to pay for international aid, peacekeeping, and other humanitarian causes through global taxes have long been shunned by the US Congress. Suggestions range from an international lottery to a tax on the arms trade. But one idea – a tax on foreign currency transactions – may have a better chance after the currency fluctuations that crashed the “Asian miracle.”