Farmland in the foothills of the Himalaya Mountains in Almora in the Indian state of Uttarakhand / credit: Charanjeet Dhiman on Unsplash
Editor’s Note: The following is the writer’s analysis.
Although the poorer and vulnerable sections of the Global South are least responsible for climate change, they are the most likely to suffer from its ravages. Despite this, their concerns have been the least heard in negotiations at the 26th Conference of Parties (COP26), the largest annual climate-change summit that attracted more than 190 countries. Meanwhile, leading businesses have influential lobbyists who quickly move to use any opportunities to corner funds.
Having sniffed out new opportunities, they have occupied important positions in the planning and negotiations relating to climate change to try to prioritize their projects as beneficiaries of new green funding.
Officially constituted expert committees have in recent years linked dam projects in the Himalayan region to ecological destruction and flash floods, which have claimed thousands of lives. Yet, similar kinds of projects are now being advertised as examples of green energy and solutions for climate change. Climate smart agriculture is being defined in ways business lobbies vying for more control of farm and food systems are being strengthened. At the same time, this weakens small farmers’ sincere efforts for ecologically protective farming. Projects that displace poor people in the name of protecting the environment are wrongly prioritized, alienating them.
Hence, it is important at this stage to warn against the misuse of funds marked for climate change mitigation and adaptation. These funds should reach those who need this help the most and are likely to put this to the most just and ecologically protective use. This means in practical terms that most funds should reach small peasants and rural landless workers for taking up mitigation as well as adaptation work. Indigenous people and tribal communities have a particularly important role in this as they have been closer to nature.
What’s more, this concern should be extended to wider planning in which reduction of greenhouse gas emissions is linked to meeting the basic needs of all people, with an emphasis on a justice-based resolution of climate change.
Small peasants should be supported for ecologically protective farming, including soil and water conservation work, which can improve the organic content of soil in just a few years. Organic soil spread over vast areas can absorb large quantities of carbon dioxide. At the same time, by avoiding or reducing chemical fertilizers, pollution caused by nitrous oxide can be reduced. That gas is about 300 times more potent compared to carbon dioxide. Mixed farming that includes indigenous trees can be well integrated, supplying more staple foods that are produced in healthy ways and close to home, reducing a long transportation burden. While contributing to mitigation, millions of acres under organic farming will ensure small farmers are less dependent on expensive chemical inputs and improve their adaptation capacity. Hence, both adaptation and mitigation can be achieved simultaneously on a sustainable basis. This is a particularly important aspect of such efforts. In fact, the more the organic content of soil improves with the passage of time, the more the mitigation and adaptation capacity increases. Such efforts simultaneously improve food sovereignty, reducing dependence on polluting and expensive substances.
Land reforms can help the landless emerge as small farmers and be a part of such efforts. In addition, the landless should be assured employment close to home in various tasks of the ecological rehabilitation of villages and nearby areas. One possibility is protecting degraded land and giving nature time to regenerate it. Yet another is to increase protections for remaining natural forests. New afforestation with indigenous species of trees should seek to mimic local natural forests.
Apart from fair wages, the landless should get longer-term rights to non-timber forest produce. This again helps mitigation as well as adaptation at the same time.
All these efforts should seek to tap and encourage creativity of workers and farmers for local solutions and innovations. To give just one inspiring example, a farmer from the Bundelkhand region of India named Mangal Singh invented a special turbine that can lift water from streams and canals without using diesel or electricity.
A turbine invented by farmer Mangal Singh. The device can lift water from streams and canals without using fossil fuels or electricity
Although the primary aim of the inventor was to help farmers and reduce costs, calculations show that a single unit serving over 15 years can reduce the use of 125,400 liters (33,127 gallons) of diesel oil and avoid 335 tons of greenhouse gas emissions. This can increase further if, with a few adjustments, this innovation is put to additional use, such as in crop processing. This has been highly praised by many senior experts, including those in official positions.
However, government apathy has stood in the way of its spread, even though the Maithani Committee appointed by India’s Rural Development Ministry strongly recommended its rapid deployment. Potentially, tens of thousands of units can be installed worldwide wherever suitable conditions exist. These kind of innovations by villagers can help greatly in simultaneously addressing climate change mitigation and adaptation. If there is better support for such initiatives, the creativity of farmers and workers can contribute much more because they are the most familiar with their local conditions.
In urban areas, construction of improved design shelters to provide protection from excessive heat to workers and homeless persons could be an obvious priority.
Democratic participatory systems based on transparency and honesty should be established to implement such initiatives. Such work is best achieved by grants, not by loans. Hence, climate funds also should be based on grants, not on loans. Unfortunately, the trend in the recent past has been rich countries providing a much bigger share of climate funding for the Global South in the form of loans. This must change to favor grants.
Bharat Dogra is Honorary Convener of the Campaign to Save Earth Now. He has been involved with several social movements in India. Dogra’s most recent books include Man Over Machine and Planet in Peril.
Demonstrators in Berlin, Germany, gathered on August 8 to protest Egypt’s attempts to greenwash crimes with the upcoming COP27 conference / credit: Twitter / FreedomForAlaa
The global climate meeting called COP27 (the 27th Conference of Parties) will be held November 6-18 in the remote Egyptian desert resort of Sharm el Sheikh. Given the repressive nature of the Egyptian government, this gathering will likely be different from others, where there have been large, raucous protests led by civil society groups.
So, as tens of thousands of delegates—from world leaders to climate activists and journalists—descend on Sharm el Sheikh from all over the world, U.S.-based activist Medea Benjamin asked Egyptian journalist Sharif Abdel Kouddous to give his thoughts about the state of Egypt today, including the situation of political prisoners, and how he expects the Egyptian government will act with the eyes of the world upon it.
For those who don’t know or have forgotten, can you give us a quick overview of the nature of the present government in Egypt today?
The 2011 revolution against Hosni Mubarak, an uprising that was part of what has been called the Arab Spring, was very inspiring and had reverberations around the world, from the Occupy Movement in the United States to the Indignados in Spain. But that revolution was crushed in a very brutal way in 2013 by the military, led by General Abdel Fattah al Sisi–who later became president.
Right now, Egypt is ruled by a very tight and closed clique of military and intelligence officers, a circle that is completely opaque. Its decision-making process does not allow for any political participation and it does not brook any kind of dissent or opposition. It seems that the government’s answer to any problems with its citizens is to put them in prison.
There are literally tens of thousands of political prisoners in Egypt right now. We don’t know the exact number because there are no official statistics and this forces lawyers and the very harassed human rights groups to try to painstakingly tabulate the thousands of people who are trapped behind bars.
Over the past few years, we’ve seen Egypt build several new prisons. Just last year Sisi oversaw the opening of the Wadi al-Natrun prison complex. It’s not called a prison complex, it’s called a “rehabilitation center.” This is one of seven or eight new prisons that Sisi himself has dubbed “American-style prisons.”
These prison complexes include within them the courts and judicial buildings, so it makes a conveyor belt from the courthouse to the prison more efficient.
What is the status of this massive group of political prisoners?
The majority of political prisoners in Egypt are held in what is called “pre-trial detention.” Under Egypt’s penal code, you can be held in prison for two years without ever being convicted of a crime. Nearly everyone held in pre-trial detention faces two identical charges: one is spreading false information and the other is belonging to a terrorist organization or an outlawed organization.
The prison conditions are very dire. If you get sick, you are in big trouble. There have been a lot of deaths from medical negligence, with prisoners dying in custody. Torture and other forms of abuse by security forces is widespread.
We’ve also seen the number of death sentences and executions skyrocket. Under the former President Mubarak, in his final decade in office, there was a de facto moratorium on executions. There were death sentences handed down but people were not being put to death. Now Egypt ranks third in the world in the number of executions.
What about other freedoms, such as freedom of assembly and freedom of the press?
Basically, the regime sees its citizens as a nuisance or a threat. All forms of protest or public assembly are banned.
Alleged violations carry very stiff prison sentences. We’ve seen mass arrests sweeps happen whenever there’s any kind of public demonstration and we’ve also seen an unprecedented crackdown on civil society, with human rights organizations and economic justice organizations being forced to scale back their operations or basically operate underground.The people who work for them are subject to intimidation and harassment and travel bans and arrests.
We’ve also seen a massive crackdown on press freedom, a nearly complete takeover of the media landscape. Under Mubarak’s government, there was at least some opposition press, including some opposition newspapers and TV stations. But now the government very tightly controls the press through censorship and also through acquisition. The General Intelligence Services, which is the intelligence apparatus of the military, has become the largest media owner of the country. They own newspapers and TV channels. Independent media, such as the one I work for called Mada Masr, operate on the margins in a very, very hostile environment.
Egypt is the third largest jailer of journalists in the world and imprisons more journalists on charges of spreading false news than any other country in the world.
Can you talk about the case of Alaa Abd El-Fattah, who is probably Egypt’s most famous political prisoner?
Alaa has been behind bars for much of the last decade. He is in prison ostensibly for the crime of “spreading false news,” but he is really in prison for these ideas, for being an icon and a symbol of the 2011 revolution. For the regime, imprisoning him was a way to set an example for everyone else. That’s why there has been so much campaigning to get him out.
He has been in prison under very, very difficult conditions. For two years he wasn’t allowed out of his cell and didn’t even have a mattress to sleep on. He was completely deprived of everything, including books or reading materials of any kind. For the first time, he started expressing suicidal thoughts.
But on April 2 he decided to go on a hunger strike as an act of resistance against his imprisonment. He has been on a hunger strike for seven months now. He started with just water and salt, which is a kind of hunger strike that Egyptians learned from Palestinians. Then in May, he decided to go on a Gandhi-style strike and ingest 100 calories a day–which is a spoonful of honey in some tea. An average adult needs 2,000 calories a day, so it’s very meager.
But he just sent a letter to his family saying that he was going back to a full hunger strike and on November 6, on the eve of the COP meeting, he’s going to stop drinking water. This is extremely serious because the body cannot last without water for more than a few days.
So he is calling on all of us on the outside to organize, because either he will die in prison or he will be released. What he is doing is incredibly brave. He is using his body, the only thing he has agency over, to organize and to push us on the outside to do more.
How do these repressed civil society leaders view the fact that Egypt is playing host to COP27?
It was very disheartening for a lot of people in Egypt who work for human rights and justice and democracy when Egypt was granted the right to host the conference. But Egyptian civil society has not called on the international community to boycott the COP meeting; they have called for the plight of political prisoners and the lack of human rights to be linked to the climate discussions and not ignored.
They want a spotlight to be placed on the thousands of political prisoners like Alaa, like Abdel Moneim Aboul Foitouh, a former presidential candidate, like Mohamed Oxygen, a blogger, like Marwa Arafa, who is an activist from Alexandria.
Unfortunately, hosting this meeting has given the government a great opportunity to remake its image. It has allowed the government to try to position itself as the voice for the Global South and the negotiator trying to unlock billions of dollars a year in climate financing from the Global North.
Of course the issue of climate reparations to the Global South is very important. It needs to be discussed and taken seriously. But how can you give climate reparations to a country like Egypt when you know the money will mostly be spent on bolstering this repressive, polluting state? As Naomi Klein said in her great article Greenwashing a Police State, the summit is going beyond greenwashing a polluting state to greenwashing a police state.
So what do you think we can expect to see in Sharm el Sheikh? Will the usual protests that happen at every COP, both inside and outside the official halls, be allowed?
I think what we are going to see in Sharm el Sheikh is a carefully managed theater. We all know the problems with the UN Climate Summits. There are a lot of negotiations and climate diplomacy, but rarely do they amount to anything concrete and binding. But they do serve as an important place for networking and convergence for different groups in the climate justice movement, an opportunity for them to come together to organize. It has also been a time for these groups to show their opposition to the inaction by those in power, with creative, vigorous protests both inside and outside the conference.
This will not be the case this year. Sharm el Sheikh is a resort in Sinai that literally has a wall around it. It can and will be very tightly controlled. From what we understand, there is a special space that has been designated for protests that has been built out near a highway, far away from the conference center and any signs of life. So how effective will it be to hold protests there?
This is why people like Greta Thunberg are not going. Many activists have problems with the structure of the COP itself but it is even worse in Egypt where the ability to use it as a convergence space for dissent will be effectively shut down.
But more importantly, the members of Egyptian civil society, including the allies and environmental groups that are critical of the government, will not be allowed to attend. In a departure from UN rules, those groups that manage to participate will have been vetted and approved by the government and will have to be very careful about how they operate. Other Egyptians who should be there are unfortunately in prison or are subject to various forms of repression and harassment.
Should foreigners also worry about the Egyptian government surveilling them?
The entire conference will be very highly surveilled. The government created this app that you can download to use as a guide for the conference. But to do that, you have to put in your full name, phone number, email address, passport number and nationality, and you have to enable location tracking. Amnesty International technology specialists have reviewed the app and flagged all these concerns about surveillance and how the app can use the camera and microphone and location data and bluetooth.
What environmental issues related to Egypt will the government allow to be discussed, and what will be off limits?
Environmental issues that will be allowed are issues such as trash collection, recycling, renewable energy and climate finance, which is a big issue for Egypt and for the Global South.
Environmental issues that implicate the government and military will not be tolerated. Take the issue of coal–something the environmental community is very critical of. That will be off limits because coal imports, much of it coming from the United States, have risen over the past several years, driven by the strong demand from the cement sector. Egypt’s largest importer of coal is also the largest cement producer, and that’s the El-Arish Cement Company that was built in 2016 by none other than the Egyptian military.
We’ve seen massive amounts of cement poured into Egypt’s natural environment over the past several years. The government has built nearly 1,000 bridges and tunnels, destroying acres and acres of green space and cutting down thousands of trees. They have gone on a crazy construction spree, building a slew of new neighborhoods and cities, including a new administrative capital in the desert just outside of Cairo. But no criticism of these projects has been or will be tolerated.
Then there is dirty energy production. Egypt, Africa’s second largest gas producer, is scaling up its oil and gas production and exports, which will mean further profits for the military and intelligence sectors involved in this. These projects that are harmful to the environment but profitable for the military will be off the agenda.
The Egyptian military is entrenched in every part of the Egyptian state. Military owned enterprises produce everything from fertilizers to baby food to cement. They operate hotels; they are the largest owner of land in Egypt. So any kind of industrial pollution or environmental harm from areas such as construction, tourism, development and agribusiness will not be tolerated at COP.
We have heard that the crackdown on Egyptians in anticipation of this global gathering has already begun. Is that true?
Yes, we’ve already seen an intensified crackdown and a massive arrest sweep in the run-up to the climate summit. There are arbitrary stop and searches, and random security checkpoints. They open your Facebook and WhatsApp, and they look through it. If they find content that they find problematic, they arrest you.
Hundreds of people have been arrested, by some counts 500 to 600. They have been arrested from their homes, off the streets, from their workplaces.
And these searches and arrests are not restricted just to Egyptians. The other day there was an Indian climate activist, Ajit Rajagopal, was arrested shortly after setting off on an eight-day walk from Cairo to Sharm el Sheikh as part of a global campaign to raise awareness about the climate crisis.
He was detained in Cairo, questioned for hours and held overnight. He called an Egyptian lawyer friend, who came to the police station to help him. They detained the lawyer as well, and held him overnight.
There have been calls for protests on November 11, or 11/11. Do you think people in Egypt will come out on the streets?
It is unclear where these protest calls started but I think it was started by people outside Egypt. I would be surprised if people come out on the streets given the level of repression we’ve been seeing these days but you never know.
The security apparatus was very surprised in September 2019 when a former military contractor turned whistleblower exposed videos showing army corruption. These videos went viral. The whistleblower called for protests but he was outside Egypt in self-imposed exile in Spain.
There were some protests, not very big but significant. And what was the government response? Massive arrests, the most massive sweep since Sisi came to power with over 4,000 people detained. They arrested all kinds of people–everyone who had been arrested before and a lot of other people. With that kind of repression, it’s hard to say if mobilizing people to go to the streets is the right thing to do.
The government is also particularly paranoid because the economic situation is so bad. The Egyptian currency has lost 30 percent of its value since the beginning of the year, precipitated by a variety of factors, including the war in Ukraine, since Egypt was getting so much of its wheat from Ukraine. Inflation is out of control. People are getting poorer and poorer. So that, combined with these calls for protests, have prompted the preemptive crackdown.
So I don’t know if people will defy the government and go out into the streets. But I gave up trying to predict anything in Egypt a long time ago. You just never know what is going to happen.
The United Nations General Assembly in September 2022 / credit: United Nations
Editor’s Note: The following represents the writers’ analysis.
We have spent the past week reading and listening to speeches by world leaders at the UN General Assembly in New York. Most of them condemned Russia’s invasion of Ukraine as a violation of the UN Charter and a serious setback for the peaceful world order that is the UN’s founding and defining principle.
But what has not been reported in the United States is that leaders from 66 countries, mainly from the Global South, also used their General Assembly speeches to call urgently for diplomacy to end the war in Ukraine through peaceful negotiations, as the UN Charter requires. We have compiled excerpts from the speeches of all 66 countries to show the breadth and depth of their appeals, and we highlight a few of them here.
African leaders echoed one of the first speakers, Macky Sall, the president of Senegal, who also spoke in his capacity as the current chairman of the African Union when he said, “We call for de-escalation and a cessation of hostilities in Ukraine, as well as for a negotiated solution, to avoid the catastrophic risk of a potentially global conflict.”
While NATO and EU countries have rejected peace negotiations, and U.S. and U.K. leaders have actively undermined them, five European countries—Hungary, Malta, Portugal, San Marino and the Vatican—joined the calls for peace at the General Assembly.
The peace caucus also includes many of the small countries that have the most to lose from the failure of the UN system revealed by recent wars in Ukraine and West Asia, and who have the most to gain by strengthening the UN and enforcing the UN Charter to protect the weak and restrain the powerful.
Philip Pierre, the Prime Minister of Saint Lucia, a small island state in the Caribbean, told the General Assembly,
“Articles 2 and 33 of the UN Charter are unambiguous in binding Member States to refrain from the threat or use of force against the territorial integrity or political independence of any state and to negotiate and settle all international disputes by peaceful means.…We therefore call upon all parties involved to immediately end the conflict in Ukraine, by undertaking immediate negotiations to permanently settle all disputes in accordance with the principles of the United Nations.”
Global South leaders lamented the breakdown of the UN system, not just in the war in Ukraine but throughout decades of war and economic coercion by the United States and its allies. President Jose Ramos-Horta of Timor-Leste directly challenged the West’s double standards, telling Western countries,
“They should pause for a moment to reflect on the glaring contrast in their response to the wars elsewhere where women and children have died by the thousands from wars and starvation. The response to our beloved Secretary-General’s cries for help in these situations have not met with equal compassion. As countries in the Global South, we see double standards. Our public opinion does not see the Ukraine war the same way it is seen in the North.”
Many leaders called urgently for an end to the war in Ukraine before it escalates into a nuclear war that would kill billions of people and end human civilization as we know it. The Vatican Secretary of State, Cardinal Pietro Parolin, warned,
“… The war in Ukraine not only undermines the nuclear non-proliferation regime, but also presents us with the danger of nuclear devastation, either through escalation or accident … To avoid a nuclear disaster, it is vital that there be serious engagement to find a peaceful outcome to the conflict.”
Others described the economic impacts already depriving their people of food and basic necessities, and called on all sides, including Ukraine’s Western backers, to return to the negotiating table before the war’s impacts escalate into multiple humanitarian disasters across the Global South. Prime Minister Sheikh Hasina of Bangladesh told the Assembly,
“We want the end of the Russia-Ukraine war. Due to sanctions and counter-sanctions … the entire mankind, including women and children, is punished. Its impact does not remain confined to one country, rather it puts the lives and livelihoods of the people of all nations in greater risk, and infringes their human rights. People are deprived of food, shelter, healthcare and education. Children suffer the most in particular. Their future sinks into darkness.
My urge to the conscience of the world—stop the arms race, stop the war and sanctions. Ensure food, education, healthcare and security of the children. Establish peace.”
Turkey, Mexico and Thailand each offered their own approaches to restarting peace negotiations, while Sheikh Al-Thani, the Amir of Qatar, succinctly explained that delaying negotiations will only bring more death and suffering:
“We are fully aware of the complexities of the conflict between Russia and Ukraine, and the international and global dimension to this crisis. However, we still call for an immediate ceasefire and a peaceful settlement, because this is ultimately what will happen regardless of how long this conflict will go on for. Perpetuating the crisis will not change this result. It will only increase the number of casualties, and it will increase the disastrous repercussions on Europe, Russia and the global economy.”
Responding to Western pressure on the Global South to actively support Ukraine’s war effort, India’s Foreign Minister, Subrahmanyam Jaishankar, claimed the moral high ground and championed diplomacy,
“As the Ukraine conflict continues to rage, we are often asked whose side we are on. And our answer, each time, is straight and honest. India is on the side of peace and will remain firmly there. We are on the side that respects the UN Charter and its founding principles. We are on the side that calls for dialogue and diplomacy as the only way out. We are on the side of those struggling to make ends meet, even as they stare at escalating costs of food, fuel and fertilizers.
It is therefore in our collective interest to work constructively, both within the United Nations and outside, in finding an early resolution to this conflict.”
One of the most passionate and eloquent speeches was delivered by Congolese Foreign Minister Jean-Claude Gakosso, who summarized the thoughts of many, and appealed directly to Russia and Ukraine—in Russian!
“Because of the considerable risk of a nuclear disaster for the entire planet, not only those involved in this conflict but also those foreign powers who could influence events by calming them down, should all temper their zeal. They must stop fanning the flames and they must turn their backs on this type of vanity of the powerful which has so far closed the door to dialogue.
Under the auspices of the United Nations, we must all commit without delay to peace negotiations – just, sincere and equitable negotiations. After Waterloo, we know that since the Vienna Congress, all wars finish around the table of negotiation.
The world urgently needs these negotiations to prevent the current confrontations—which are already so devastating—to prevent them from going even further and pushing humanity into what could be an irredeemable cataclysm, a widespread nuclear war beyond the control of the great powers themselves—the war, about which Einstein, the great atomic theorist, said that it would be the last battle that humans would fight on Earth.
Nelson Mandela, a man of eternal forgiveness, said that peace is a long road, but it has no alternative, it has no price. In reality, the Russians and Ukrainians have no other choice but to take this path, the path of peace.
Moreover, we too should go with them, because we must throughout the world be legions working together in solidarity, and we must be able to impose the unconditional option of peace on the war lobbies.
(Next three paragraphs in Russian)
Now I wish to be direct, and directly address my dear Russian and Ukrainian friends.
Too much blood has been spilled – the sacred blood of your sweet children. It’s time to stop this mass destruction. It’s time to stop this war. The entire world is watching you. It’s time to fight for life, the same way that you courageously and selflessly fought together against the Nazis during World War Two, in particular in Leningrad, Stalingrad, Kursk and Berlin.
Think about the youth of your two countries. Think about the fate of your future generations. The time has come to fight for peace, to fight for them. Please give peace a real chance, today, before it is too late for us all. I humbly ask this of you.”
At the end of the debate on September 26, Csaba Korosi, the president of the General Assembly, acknowledged in his closing statement that ending the war in Ukraine was one of the main messages “reverberating through the Hall” at this year’s General Assembly.
You can read here Korosi’s closing statement and all the calls for peace he was referring to.
And if you want to join the “legions working together in solidarity… to impose the unconditional option of peace on the war lobbies,” as Jean-Claude Gakosso said, you can learn more at peaceinukraine.org.
Flowers reach their final destination on an Ecuadorian farm and are packaged at high speeds in the post-harvesting room. The women strip off leaves with gloves and cut the flowers to the proper size before depositing them in bunches on the conveyor belt (running through the middle of the photo). The flowers are then placed in large refrigerators before being shipped to international destinations / credit: Laura Kraft / Flickr
Editor’s Note: Kawsachun News spoke to Ecuadorian economist Juan Fernando Terán on April 2 about Western sanctions, the Ukraine war and how Latin America can protect its economy. The original interview can be found here.
Who is paying the price of western sanctions on Russia? Ecuador’s banana industry has collapsed without the Russian consumer market.
Juan F. Terán: Countries that export food and agricultural goods are in an incredibly difficult position now. Ecuador, Colombia, Brazil and Argentina are among the worst affected. These countries import almost all the supplies they need for agricultural production; fertilizer, agrochemicals and even seeds in some cases. Sanctions have cut off these supplies. We could have prevented this situation.
Latin America lived through a golden era of development and integration during the period of leaders such as [former Ecuadorian President Rafael] Correa, [former Bolivian President] Evo Morales, [former Brazilian President] Lula [da Silva] and others. During these years, a lot of work went into the issue of how the region can start producing its own agricultural supplies. This was a flagship project of [Union of South American Nations] UNASUR. The aim was to guarantee food security in the face of fluctuations in international markets. There was also the proposal for a Latin American-wide bank and a common currency. This could’ve helped the region’s economy survive this current monetary crisis, too.
What’s happening now, though? Let’s look at the case of Ecuador: We have two main sources of income in exports. The first is oil. Logically, the war in Ukraine should have been beneficial because the price of oil has risen, which should mean more income from sales for Ecuador. However, the conservative President Guillermo Lasso had already promised the IMF the payment from future oil sales. Even if the price of oil goes to $300 (per barrel) it won’t benefit ordinary citizens.
What about agriculture?
JFT: The country also earns a lot by exporting goods such as bananas, coffee, shrimp and flowers. The primary market for Ecuadorian flower production is Russia. Now those producers are facing a dramatic crisis because sanctions have cut them off from their clients. This is a huge industry for Ecuador. In the provinces of Pichincha and Cotopaxi, there are entire regions dedicated almost entirely to flower production. They even have airports there because these flowers are exported to the world by plane. A small part of their production goes to the United States and Europe, but the large majority goes to Russia. Russia is one of the few countries where people buy flowers all year round rather than just for certain dates like Valentine’s Day.
What about our shrimp, coffee, or cacao exports? All that requires fertilizer and other imported agricultural supplies. Now there’s a global shortage, Russia was the world’s leading producer and now they’re sanctioned.
What has been the government’s response?
JFT: Countries can survive this storm if they have an umbrella, but Ecuador doesn’t have a progressive government. It has a neoliberal government. Our economy has no umbrella now.
What has been the neoliberal response to this current crisis? The flower producers were the first to ask for assistance. They asked for loans, so they can sustain themselves temporarily during this drop. President Lasso replied by saying that going into business means assuming risk and that the state has no obligation to bail anyone out. This idea of not bailing anyone out is a great idea in my opinion, but only if it’s applied evenly. We shouldn’t have to bail out the bankers when they have a crisis. But, of course, Guillermo Lasso will never abandon his people. He only abandons small farmers, who are now in crisis.
Electing progressive governments in Latin America is not a question of ideology; it’s also about citizens defending their economy and living standards. If a banker manages to win an election, then these are the results.
Many countries now see Washington as an unreliable ally and are looking to trade in different currencies. Do you think the U.S. dollar will lose its international hegemony? What would that mean for Latin America?
JFT: When the [Brazil, Russia, India, China, South Africa] BRICS countries start trading entirely in Yuan, or any currency that isn’t the dollar, then the world is going to really change. I think we can expect to see this transformation within the next five years. It’ll represent the definitive defeat of the U.S. empire. History shows us that a country’s military power is linked to the power of its currency.
When Britain ruled the world, the British pound dominated international trade. Even Ecuador’s external debt was in pound sterling during those years. The reserves of our central bank were in pound sterling. This came to an end after the end of World War 2 because the U.S. became the new dominant power and built the world’s financial and monetary institutions for its own ends. The current war in Ukraine is also about currency. The U.S. is participating in this conflict against Russia because they need to defend the power of the dollar.
What can the region do?
JFT: Latin America needs to slowly de-link our region from the U.S. dollar. We need to diversify our international currency reserves. Correa began to do this in Ecuador by investing in gold reserves. This was criticized by the opposition at the time. However, this diversification can only happen if we make the necessary changes to our commercial relations. If we’re to start building reserves in the Chinese yuan, then we need to deepen commercial relations with China to achieve this.
I think we should return to the proposal of UNASUR of creating a common Latin American currency with its own central bank. We also need a Latin American payment system. Look at how the U.S. is using SWIFT to cut off any country they don’t like from the global economy. We can’t allow that. It makes us vulnerable. Russia and China are creating their own payment systems. We should have our own as well.
There’s no use in just complaining about U.S. aggression. That’s what they do. They invade and attack countries all over the world. The real problem is that Latin America is exposed and unable to deal with this kind of economic war. In response, we need to turn towards Asia in a serious way. Why isn’t the Ecuadorian government securing new markets for our shrimp and banana in China? There’s huge demand there. Bolivia and Ecuador both have vast mineral wealth, we need to bypass the West and focus on Asia when it comes to trade and investment in these commodities.
U.S. media has attacked countries like Mexico, Brazil and Argentina, for not imposing their own economic sanctions on Russia. Do you think this capricious request from the United States will further break down the U.S. sphere of influence here and across the rest of the global South?
These sanctions are causing an inflation crisis for people everywhere. Europeans are paying 8-9 euros for a gallon of gasoline. In the U.S., it’s $4.75. Up to $6 in places like California and Miami. This is shocking. The sanctions are having a boomerang effect on the U.S. and its citizens. Though not everyone is suffering: Arms manufacturers are not suffering. People like [U.S. President Joe] Biden’s son [Hunter], with shady dealings in the gas business, are not going to suffer.
Financial analysis reports came out this week indicating that if the price of gasoline remains at $4.75 as a national average in the U.S., then the U.S. economy will enter into a recession at the end of this year. None of what they’re doing is reasonable from the perspective of ordinary citizens.
