‘All We Got Was More Debt’: Lumpy Skin Disease Kills Cattle, Adding to Financial Struggles of India’s Poor

Editor’s Note: This analysis originally appeared in People’s Dispatch.

Between August 22 and September 1, the United States and South Korea concluded their largest joint military drills in the Korean Peninsula since 2017, under the name ‘Ulchi Freedom Shield’. Over the last four years, the scope of the annual exercises had been scaled back, first because of U.S. President Donald Trump’s attempts at diplomacy with North Korean leader Kim Jong-un and later because of the COVID-19 pandemic.

With these drills, however, the United States and South Korea seem to be attempting to send a clear message to both North Korea and China of their united military posture in the region, and come at a time when the U.S. encirclement of China continues rapidly.

The military relationship between the United States and South Korea, officially the Republic of Korea (ROK), has a long history, stretching back at least as far as the Korean War. The United States has maintained a force of at least tens of thousands of troops in South Korea since prior to the Korean War, and, while South Korean forces are otherwise independent, at times of war they are subordinated to the command of a U.S. general as part of the ROK/U.S. Combined Forces Command. About 28,500 U.S. troops are stationed in South Korea, making it the country with the third-highest number of U.S. troops outside of the United States.

While the recent exercises have been conducted against a nameless enemy, it is not hard to see towards whom their message is aimed. The site of the exercises is only 32 kilometers from the border and De-Militarized Zone (DMZ) between North and South Korea. Live-fire tank and troop maneuvers have been practiced as the United States and the ROK engage in simulations and seek to increase interoperability of their deployments and technologies. War-gamed attempts to seize “weapons of mass destruction” and mount a defense of Seoul suggest that they are preparations for potential conflict with North Korea.

Trump’s attempts to seek a diplomatic end to the North Korean nuclear program were unsuccessful, as have been U.S. economic sanctions and blockades. These exercises must be seen as a continuing show of force towards the same chief end. As part of his campaign and even more recently, new South Korean Premier Yoon Suk-yeol has touted his willingness to engage in “decapitation strikes” against the North Korean leadership, as part of a broader turn towards support for, and from, U.S. interests in the region.

He has also more recently offered a bouquet of economic enticements for North Korea to abandon its nuclear program, an offer that was rejected out of hand by Kim Jong-un’s sister, Kim Yo-jong, who pointed out that it was merely the restatement of a similar offer that had been made and dismissed in the past. The North sees its nuclear arsenal as non-negotiable and the key to its global legitimacy, and is no doubt also aware of what has happened to other countries, such as Libya and Iran, that have agreed to put holds on their military nuclear capabilities at the behest of the United States. With U.S. bases and troops having been positioned so close to its border for almost its entire existence as a country, it is easy to understand why North Korea does not see a reduction in its military capabilities as a particularly pressing or, indeed, sensible priority.

The resumption of these joint military exercises has also been viewed with alarm by China, which, like North Korea, has repeatedly pointed to U.S. attempts to set up a NATO-like organization in Asia. As tensions in the region reached unprecedented levels recently following U.S. politician Nancy Pelosi’s provocative visit to Taiwan, it seems the U.S. military presence in the region is only likely to increase in the near future.

South Korea and the United States also recently participated in trilateral military exercises with Japan near Hawai’i, signaling what might be a new low in hostilities that trace their roots to the Japanese occupation of Korea, which only ended in 1945, when the administration of South Korea was handed over briefly to the United States. This too has been noted with concern by China, and suggests that the United States is coordinating its allies in the region as it attempts to extend its global hegemony ever-further eastward.

Last month, U.S. Special Presidential Envoy for Climate John Kerry visited India in an effort to bolster the United States’ bilateral and multilateral climate efforts ahead of the 26th Conference of Parties (COP26), which will be held in Glasgow in just a few weeks. Countries that signed the United Nations Framework Convention on Climate Change (UNFCCC) will attend the conference to deliberate as well as negotiate actions needed to combat the climate crisis.

Kerry’s visit to India also marked the launch of Climate Action and Finance Mobilization Dialogue (CAFMD). CAFMD is part of the U.S.-India Agenda 2030 Partnership Indian Prime Minister Narendra Modi and U.S. President Joe Biden announced in April at the Leaders Summit on Climate. The talks took place within the context of India’s membership within an alliance colloquially referred to as “The Quad.” The alliance comprises Australia, Japan, India and the United States, and is aimed at countering a growing China in the Indo-Pacific region.

Soon after Kerry’s visit to India, Quad leaders met at the White House for discussions on a host of issues, including climate change. They agreed to work on climate targets aimed at 2030 and pursue enhanced actions in the 2020s.  

But what tools are available to India—and other developing countries—to support them as they face climate-change impacts like eroding coastlines and droughts? And how will such tools be made available? 

Mobilizing finance is considered key to helping developing countries meet their emission-reduction targets and adapt to climate-change impacts. At COP15 in Copenhagen in 2009, developed countries committed to a goal of jointly mobilizing $100 billion per year by 2020 to address the needs of developing countries.

But while COP15 set a clear target of $100 billion, it allowed flexibility in terms of what forms of financial support qualify as climate finance. The Paris Agreement, the successor to the Copenhagen Accord, reiterated the $100 billion per year commitment, but it also allows a wide range of financial instruments.

Developing Countries’ Perspective

Developed and developing countries have different perspectives on climate finance. Chandra Bhushan, a public policy expert and founder/CEO of International Forum for Environment, Sustainability & Technology (iFOREST), explained when developing countries speak of climate-finance requirements, they largely mean public grants from developed countries. But when developed countries talk about climate finance, they mean “everything from loans to grants to bilateral and multilateral funding,” Bhushan said. 

Bilateral funding refers to financial support from one country to another. Multilateral funding involves agencies such as the World Bank, which derives its source of funding from multiple countries.

India’s official position on climate finance is only grants and grant-equivalent elements of other instruments, like loans and guarantees, ought to be recognized as climate finance. For example, in a recent interview to CarbonCopy, Rajni Ranjan Rashmi, a former principal negotiator for India at the UN climate change negotiations, said it is “logical” to include only the grant portion, or the concessional part, of the loans in the definition of climate finance.

Publicly available information about CAFMD does not reveal what exactly “financial mobilization” would entail. This reporter filed a Right to Information (RTI) request with the Ministry of Environment, Forests and Climate Change (MoEFCC) for minutes of meetings held between Kerry and the ministry. However, the request was denied.

Bhushan also expressed skepticism, noting how pre-COP launches of dialogues, like CAFMD, are not uncommon. But he said their progress is rarely tracked to ascertain achievements.

Unpacking “Finance Mobilization”

In general, “finance mobilization” can happen on both concessional and commercial terms. Arjun Dutt, program lead at Council on Energy, Environment and Water (CEEW) said concessional capital typically is channeled through grants and soft loans to market segments that are not commercially viable to catalyze investment. And as for finance on commercial terms, Dutt noted it typically flows into sectors that have achieved commercial viability and large-scale deployment, such as utility-scale renewable energy.

Elaborating on what India needs, Dutt said if the world wants India to decarbonize at an accelerated pace and commit to net-zero goals, the country “would likely require greater international [climate-finance] flows on both concessional and commercial terms.”

Through financial instruments such as guarantees, concessional capital could help lower the risk of loan defaults with new clean-energy technologies, which could catalyze more private-sector investments, Dutt explained. And as for commercial international capital, it would be needed because of the sheer scale of India’s decarbonization requirements.

Pays to note, in her meeting with Kerry, Indian Minister of Finance and Corporate Affairs Nirmala Sitaraman also underscored a need for enhanced climate finance for developing countries, or funding beyond the $100 billion commitment made at the Copenhagen summit.

Recently, even African nations called for a 10-fold increase to the $100 billion climate finance target.

Climate Finance’s Track Record

Developed countries have largely failed in fulfilling their climate finance obligations, a September 2021 report shows. Out of 23 developed countries that have a responsibility to provide climate finance, only Germany, Norway and Sweden have been paying their fair share of the annual $100 billion goal. More specifically, it states that the United States has the biggest shortfall in paying its fair share of climate finance, based on historical emissions and national income.

And closer examination of delivered climate finance reveals other issues. According to a report by Oxfam, the share of grants in global public climate finance was only 27 percent in 2019, whereas loans—both concessional and otherwise—totaled 71 percent. The remaining 2 percent comprised finance mobilized from private sources. Oxfam referred to this reliance on loans to fulfill climate-finance obligations “an overlooked scandal.”

Recently, a climate negotiator from a developing country, who anonymously wrote for The Guardian, pointed out how climate finance in the form of loans is creating a debt trap for countries in the Global South, where the COVID-19 pandemic has hit economies.

Interest rates on concessional loans are unequal, too. “The rate of interest in developed countries is around 2 percent and in India, it is around 14 percent,” said Bhushan of iFOREST. “So, if the United States gives a loan for 6 percent, will you consider it as a loan given on concessional terms?”

Funding Mitigation Versus Adaptation

Climate finance usually aids two solutions: Mitigation and adaptation. Mitigation refers to efforts aimed at reducing greenhouse-gas emissions like investments in renewable energy technologies or even making existing energy generation more efficient. Adaptation means remodeling and reorganizing society and the physical environment to address risks posed by climate change. Climate adaptation includes enhancing the resilience of coastal communities with nature-based solutions like restoration of mangroves and providing food security with climate-resilient agricultural practices.

Here, too, disparities exist between the needs of developing countries and what the developed world actually delivers.

Little doubt remains that climate change disproportionately impacts the Global South, given pre-existing conditions like food insecurity and lack of adequate healthcare. And so, countries in this region need as much financial support, if not more, for adaptation as they do for undertaking mitigation measures to arrest the global temperature rise. Even the Paris Agreement recognizes developing countries need equal amounts of funding towards mitigation and adaptation. But funding flows largely towards mitigation.

Oxfam points out 66 percent of global public climate finance supported mitigation while only 25 percent went toward adaptation. “Profitability drives the flow of money,” Dutt said, noting how climate finance goes toward mitigation efforts—like enhancing deployment in the renewable energy sector—and not to adaptation. But this is where public finance—or that which is provided by taxpayer money—can flow.

It also is unclear if developing countries have undertaken climate-change impact assessments and drafted clear policies aimed at mitigation, which could then be implemented using international climate financing.

Developing Homegrown Climate Technology

Article 4.5 of the UNFCCC states developed countries have undertaken a commitment to 

“take all practicable steps to promote, facilitate and finance, as appropriate, the transfer of, or access to environmentally sound technologies and knowledge to other Parties, particularly developing country Parties, to enable them to implement the provisions of the Convention.” 

But little clarity is available on what “practicable” entails, what “as appropriate” means and what “environmentally sound technologies” encompass.

More rudimentary questions exist about whether developing countries like India need technology transfers.

“Renewable energy technologies like modules and inverters are produced at a mass scale across the world and even in India. These technologies are well-understood,” Dutt said. The only challenge, Dutt added, is India has not been able to produce renewable-energy equipment at globally competitive rates.

Expressing similar concerns, Bhushan spoke of how technologies like solar photovoltaic (PV) panels have hundreds of parts and algorithms that could have hundreds of intellectual property rights (IPRs). “Many of these IPRs are from developing countries themselves,” he noted. These IPRs are then packaged together and sold to companies to manufacture solar PV modules and panels. “Technology transfer is not like giving a formula to someone to produce a chemical. It is a combination of hundreds of formulas, many owned by Indians themselves,” Bhushan said. “The bottomline is, if you have money, you can buy whatever technology you want.” And so, the issue is not about freeing technology, like with the COVID-19 vaccines.

India has largely handled its own mitigation pathway because the country has access to renewable-energy technologies—both imported and domestically produced. Bhushan said talk of technology transfer is largely rhetoric without substantive demands detailing what exactly developing countries need.

Rishika Pardikar is a freelance journalist in Bangalore, India.

Editor’s Note: This analysis was produced by Globetrotter.

On January 21, 2022, Vice Admiral Kay-Achim Schönbach attended a talk in New Delhi, India, organized by the Manohar Parrikar Institute for Defense Studies and Analyses. Schönbach was speaking as the chief of Germany’s navy during his visit to the institute. “What he really wants is respect,” Schönbach said, referring to Russia’s President Vladimir Putin. “And my god, giving someone respect is low cost, even no cost.” Furthermore, Schönbach said that in his opinion, “It is easy to even give him the respect he really demands and probably also deserves.”

The next day, on January 22, Ukraine’s Foreign Minister Dmytro Kuleba summoned Germany’s ambassador to Ukraine, Anka Feldhusen, to Kyiv and “expressed deep disappointment” regarding the lack of German weapons provided to Ukraine and also about Schönbach’s comments in New Delhi. Vice Admiral Schönbach released a statement soon after, saying, “I have just asked the Federal Minister of Defense [Christine Lambrecht] to release me from my duties and responsibilities as inspector of the navy with immediate effect.” Lambrecht did not wait long to accept the resignation.

Why was Vice Admiral Schönbach sacked? Because he said two things that are unacceptable in the West: First, that “the Crimean Peninsula is gone and never [coming] back” to Ukraine and, second, that Putin should be treated with respect. The Schönbach affair is a vivid illustration of the problem that confronts the West currently, where Russian behavior is routinely described as “aggression” and where the idea of giving “respect” to Russia is disparaged.

Aggression

U.S. President Joe Biden’s administration began to use the word “imminent” to describe a potential Russian invasion of Ukraine toward the end of January. On January 18, White House Press Secretary Jen Psaki did not use the word “imminent,” but implied it with her comment: “Our view is this is an extremely dangerous situation. We’re now at a stage where Russia could at any point launch an attack in Ukraine.” On January 25, Psaki, while referring to the possible timeline for a Russian invasion, said, “I think when we said it was imminent, it remains imminent.” Two days later, on January 27, when she was asked about her use of the word “imminent” with regard to the invasion, Psaki said, “Our assessment has not changed since that point.”

On January 17, as the idea of an “imminent” Russian “invasion” escalated in Washington, Russia’s Foreign Minister Sergei Lavrov rebuked the suggestion of “the so-called Russian invasion of Ukraine.” Three days later, on January 20, spokeswoman for Russia’s Foreign Ministry Maria Zakharova denied that Russia would invade Ukraine, but said that the talk of such an invasion allowed the West to intervene militarily in Ukraine and threaten Russia.

Even a modicum of historical memory could have improved the debate about Russian military intervention in Ukraine. In the aftermath of the Georgian-Russian conflict in 2008, the European Union’s Independent International Fact-Finding Mission on the Conflict in Georgia, headed by Swiss diplomat Heidi Tagliavini, found that the information war in the lead-up to the conflict was inaccurate and inflammatory. Contrary to Georgian-Western statements, Tagliavini said, “[T]here was no massive Russian military invasion underway, which had to be stopped by Georgian military forces shelling Tskhinvali.” The idea of Russian “aggression” that has been mentioned in recent months, while referring to the possibility of Russia invading Ukraine, replicates the tone that preceded the conflict between Georgia and Russia, which was another dispute about old Soviet borders that should have been handled diplomatically.

Western politicians and media outlets have used the fact that 100,000 Russian troops have been stationed on Ukraine’s border as a sign of “aggression.” The number—100,000—sounds threatening, but it has been taken out of context. To invade Iraq in 1991, the United States and its allies amassed more than 700,000 troops as well as the entire ensemble of U.S. war technology located in its nearby bases and on its ships. Iraq had no allies and a military force depleted by the decade-long war of attrition against Iran. Ukraine’s army—regular and reserve—number about 500,000 troops (backed by the 1.5 million troops in NATO countries). With more than a million soldiers in uniform, Russia could have deployed many more troops at the Ukrainian border and would need to have done so for a full-scale invasion of a NATO partner country.

Respect

The word “respect” used by Vice Admiral Schönbach is key to the discussion regarding the emergence of both Russia and China as world powers. The conflict is not merely about Ukraine, just as the conflict in the South China Sea is not merely about Taiwan. The real conflict is about whether the West will allow both Russia and China to define policies that extend beyond their borders.

Russia, for instance, was not seen as a threat or as aggressive when it was in a less powerful position in comparison to the West after the collapse of the USSR. During the tenure of Russian President Boris Yeltsin (1991-1999), the Russian government encouraged the looting of the country by oligarchs—many of whom now reside in the West—and defined its own foreign policy based on the objectives of the United States. In 1994, “Russia became the first country to join NATO’s Partnership for Peace,” and that same year, Russia began a three-year process of joining the Group of Seven, which in 1997 expanded into the Group of Eight. Putin became president of Russia in 2000, inheriting a vastly depleted country, and promised to build it up so that Russia could realize its full potential.

In the aftermath of the collapse of the Western credit markets in 2007-2008, Putin began to speak about the new buoyancy in Russia. In 2015, I met a Russian diplomat in Beirut, who explained to me that Russia worried that various Western-backed maneuvers threatened Russia’s access to its two warm-water ports—in Sevastopol, Crimea, and in Tartus, Syria; it was in reaction to these provocations, he said, that Russia acted in both Crimea (2014) and Syria (2015).

The United States made it clear during the administration of President Barack Obama that both Russia and China must stay within their borders and know their place in the world order. An aggressive policy of NATO expansion into Eastern Europe and of the creation of the Quad (Australia, India, Japan and the United States) drew Russia and China into a security alliance that has only strengthened over time. Both Putin and China’s President Xi Jinping recently agreed that NATO’s expansion eastward and Taiwan’s independence were not acceptable to them. China and Russia see the West’s actions in both Eastern Europe and Taiwan as provocations by the West against the ambitions of these Eurasian powers.

That same Russian diplomat to whom I spoke in Beirut in 2015 said something to me that remains pertinent: “When the U.S. illegally invaded Iraq, none of the Western press called it ‘aggression.’”

Vijay Prashad is an Indian historian, editor and journalist. He is a writing fellow and chief correspondent at Globetrotter. He is the chief editor of LeftWord Books and the director of Tricontinental: Institute for Social Research. He is a senior non-resident fellow at Chongyang Institute for Financial Studies, Renmin University of China. He has written more than 20 books, including The Darker Nations and The Poorer Nations. His latest book is Washington Bullets, with an introduction by Evo Morales Ayma.