Monday, March 30, 2009

Global Compact is "effectively useless", according to Global Witness

In a recent interview about Turkmenistan’s public funds held in accounts at Deutsche Bank, Tom Mayne, a campaigner with Global Witness, said that the UN Global Compact is "paraded by businesses as a kind of good-governance marketing tool". Moreover, he said that it is "effectively useless" because it "does not have any mechanism to see whether businesses are living up to its ideals".

Global Witness' latest report, entitled Undue diligence: how banks do business with corrupt regimes, which was released on March 11, looks at Turkmenistan as one of a number of resource-rich states whose leaders used western banks to deposit foreign currency earnings belonging to the state, and in some cases used their access to these accounts to embezzle and fritter away these funds.

More than two years after the death of former president Saparmurat Niazov, Global Witness believes Turkmenistan may still be placing large amounts of natural gas revenues in off-budget accounts abroad. The report reveals that "Deutsche Bank held the central bank accounts for gas-rich Turkmenistan for 15 years, despite the fact that the money was being kept out of the national budget and was effectively under the personal control of Niayzov." According to Global Witness, Deutsche Bank acted as the main banker for the government of Turkmenistan under President Niazov. Though Deutsche Bank has confirmed that it did not hold personal accounts for Niazov, because of the nature of Niazov’s rule, all of Turkmenistan’s money was under his control.

When campaigner Tom Mayne confronted Deutsche Bank with Global Witness' findings, the German bank cited its participation in the UN Global Compact. Even when the organization raised the matter of the Turkmen accounts at the Deutsche Bank's annual general meeting in 2008, the head of the bank simply referred to the Compact again. The bank also replied in the media through its press officer, who again stated that the bank is a member of the UN Global Compact. "Without explaining how they are living up to this Compact by banking for autocratic Turkmenistan", said Tom Mayne.

Global Witness investigated submitting a complaint to the Global Compact, but decided not to proceed. According to the report, the most that the Global Compact could offer was to facilitate a dialogue with the bank, with whom Global Witness was already "having such an unsatisfactory correspondence".

Interestingly, Global Witness itself has been a participant in the Global Compact since 2003. Which makes one wonder: isn't it about time to withdraw from this "effectively useless" initiative?

The interview with Tom Mayne is available here.

Friday, March 27, 2009

CNPC / PetroChina's controversial dealings in Burma

In February this year, over 80 civil society organizations submitted an open letter to the United Nations Global Compact (UNGC) in support of a formal complaint against PetroChina, a Global Compact participant. The civil society groups allege that CNPC, PetroChina's parent company, is a major financer of the Sudanese government and that it indirectly supports the Sudan regime that is responsible for the human rights crisis in Darfur. CNPC / PetroChina seems more than happy to turn a blind eye to the fact that it is largely funding the Government of Sudan's six-year reign of terror over its own people in its Darfur region. Labeled genocide by the US Congress in 2004, this massive humanitarian crisis has resulted in the deaths of over 300,000 people, the displacement of at least 2.7 million and the rapes of countless women and young girls.

But Sudan is not the only country where CNPC / PetroChina fails to uphold the ten principles of the UN Global Compact.

In a March 19 Time Magazine feature-length article, "The Scramble for a Piece of Burma", Hannah Beech reports on the impacts of oil and gas development in the ethnic territories of military-ruled Burma. The exposé focuses in part on Arakan State in western Burma, where a consortium led by South Korea’s Daewoo International, in partnership with CNPC and the Burmese regime, are developing the Shwe Gas Project, Burma's largest ever natural resource extraction project, intended to transport gas to China via an overland pipeline. The article notes how the planned Shwe gas pipeline to China "will likely result in extensive village relocations" and how dissidents in ethnic Arakan State are currently being rounded up by the authorities and disappeared.

EarthRights International (ERI) and the Shwe Gas Movement (SGM) – a local ethnic Arakan opposition to the Shwe project – documented these and other current and potential impacts of the Shwe Project in a 2008 OECD complaint to the Korean Government. The complaint focused on violations of international law and breaches of the OECD Guidelines for Multinational Enterprises by South Korea's Daewoo International and the Korea Gas Corporation (KOGAS), through their involvement in the Shwe project. Filed in Seoul at the office of the Korean OECD National Contact Point (NCP) on October 28, 2008, the complaint was rejected on November 27, 2008, with the Korean government claiming that it "finds it hard to assume that the involved corporations breached the OECD Guidelines for Multinational Enterprises…[and] does not see a necessity to initiate an additional investigation or an arbitration."

The Shwe gas is estimated to be worth upwards of 40 billion US dollars, according to the Shwe Gas Movement. Time Magazine quotes ERI co-founder and Executive Director Ka Hsaw Wa, who commented, "Multinationals are getting rich off Burma, and so is the military regime [...]. It is the local people who are suffering and dying."

In June 2008, an agreement was signed in Burma between the consortium led by Daewoo International, the military regime in Burma, and CNPC for the sale and transport of natural gas from Burma's Bay of Bengal to Yunnan Province, China. The deal marked a significant step toward a transnational gas pipeline to China that will result in massive human rights abuses in Burma, according to the Shwe Gas Movement.

ERI is working to stop the Shwe project until it can proceed without adverse human rights and environmental impacts, and is working to strengthen corporate accountability worldwide. According to Time Magazine, "In the end, it may be the foreign participants in this new Great Game, unschooled in how to navigate ethnic complexities, who will get bitten."

For more information on the Shwe Project, click here.

© Photo by Jean-Marie Hullot.

Monday, March 23, 2009

Privatizing water is denying people a human right: UN president

By Bobby Ramakant.

The president of the United Nations General Assembly has told delegates at the 5th World Water Forum (WWF) in Istanbul, Turkey, that, "those who are committed to the privatization of water, making it a commodity like oil, are denying people a human right as basic as the air we breathe."

In a speech delivered by his senior advisor on water Maude Barlow, UN president Miguel d'Escoto Brockmann said, "We must work quickly to guarantee that access to drinking water constitutes a fundamental right of all peoples..."

"Water belongs to the people, to the ecosystem and the species and it belongs to the future" had said Maude Barlow earlier this week in Istanbul.

Ms. Barlow, who is also the national chairperson of the Council of Canadians, delivered the president's message to the People's Water Forum, a counter-forum being held by hundreds of civil society members from nearly 70 countries whose voices have not been at the WWF. The speech was later released to the World Water Forum, which is being attended by 20,000 delegates from 150 countries.

The UN president also questioned the legitimacy of the forum itself. His speech stated, "The forum's orientation is profoundly influenced by private water companies. This is evident by the fact that both the president of the World Water Council and the alternate president are deeply involved with provision of private, for-profit, water services."

He added that future forums should, "conduct their deliberations under the auspices of the United Nations."

D'Escoto Brockmann also criticized the World Water Forum's draft Ministerial Declaration, which sees water as a "human need" rather than a human right. He said, "As it stands, this important statement undermines the efforts of those who are struggling for access to clean water and sanitation."

"Global water justice movement advocates welcome this being the last World Water Forum in its present format," adds Barlow. "There is an urgent need for an accountable and legitimate global water forum to be held regularly to address the grave threats facing our blue planet."

Earlier last week, a group of 118 organizations from 33 countries had signed and issued a letter to United Nations Secretary General Ban Ki-Moon that calls on him to withdraw his support for the 'CEO Water Mandate', a corporate driven water initiative under the 'UN Global Compact' that facilitates corporate control of water resources. Representatives of the letter's signatories had delivered a copy of the letter to the Deputy Director of the UN Global Compact, Gavin Power, at the 5th World Water Forum.

The CEO Water Mandate's leading endorsers currently include water bottlers Coca-Cola, Nestlé, and Pepsi, as well as Suez, one of the world's largest privatizers of water services and systems.

"All of these corporations have a vested interest in controlling water resources and profiting from water scarcity, so there is a great danger in leaving international water policy in such hands," said Richard Girard, researcher for the Polaris Institute.

"Those who are dealing with corporate control of water's manifold downsides – water takings, water shut-offs, price hikes, short cuts on water treatment – are people deeply affected by the water crisis and corporations' actions," said Mark Hays from Corporate Accountability International. "Yet these same people, who are going thirsty, don't have a true voice at these meetings – their voices need to be heard, and they should be in the drivers' seat."

The Global Water Justice Movement activists are calling on the United Nations to take the lead in creating transparent, democratic space to decide international water policy. But to date, the UN continues to be in a contradictory position by, on the one hand, raising awareness about the world water crisis and calling for needed change, and on the other housing the CEO Water Mandate. Groups like the Polaris Institute and Corporate Accountability International are challenging the CEO Mandate because it allows corporations to undermine democratic control of water under the aegis of the United Nations.

Source: Citizen News Service (20/3/2009) / © Photo by Eskinder Debebe.

Thursday, March 19, 2009

Global Compact Society in India counters accusations

In January, Suresh Pramar submitted a letter of complaint to the president of the Global Compact Society, the local network of the Global Compact in India. In the letter, Mr. Pramar alleged that the functioning of the Society is "steeped in irregularities and illegalities". His organization, the Global Gandhian Trusteeship and Corporate Responsibility Foundation, is a participant in the Global Compact.

Yesterday, the Global Compact Society forwarded us a copy of the reply sent to Mr. Pramar about a week ago. It seeks to refute the assertions Mr. Pramar made in his letter of complaint. According to Mr. Satish Rao, the current secretary of the Global Compact Society, Mr. Pramar should refrain from designating himself as the joint secretary of the Society, because his term as "honorary joint secretary" was not renewed after June 2008.

The letter also refers to Mr. Pramar's accusations of abuse of power against Dr. Uddesh Kohli, the coordinator of the Focal Point for the Global Compact in India. Mr. Satish Rao states that "Dr. Uddesh Kohli is a highly respected member of the Governing Council as well as senior adviser to the United Nations Global Compact (UNGC). Let it be categorically clarified that Dr. Kohli has never availed any undue financial favors through the society, nor has he been engaged in misrepresenting or finalizing the record notes and minutes of the meetings."

According to Mr. Satish Rao, "significant changes have been undertaken" to improve the functioning of the Society. In the letter, he says that many of the concerns that were raised in a research report published in 2007 by the German Development Institute (DIE) have been addressed in a new strategic plan.

The letter is available here.


© Photo by Amy Alldis.

Wednesday, March 18, 2009

Global Compact Board will discuss PetroChina complaint on July 24

According to an e-mail from the executive director of the UN Global Compact, the Global Compact Board will discuss the complaint against PetroChina at its next meeting on July 24, 2009.

In February, the group of civil society organizations that had submitted the complaint received a
letter from Sir Mark Moody-Stuart, vice chair of the Global Compact Board. In the letter, Mr. Moody-Stuart said that the Board would discuss the matter "fully" at its next meeting and that it would "review the processes described" in the Compact’s Integrity Measures.

Last week, UN's Secretary-General Ban Ki-moon appointed six new members to the Board. The appointments followed the recommendations made by the Board's own Nominations Committee.

Chaired by the Secretary-General, the Board was created in 2006 as a "multi-stakeholder" body to provide strategic and policy advice for the initiative as a whole and to make recommendation to the UN Global Compact Office, participants and other stakeholders. With now 23 members representing business, civil society, labor, and the United Nations, the Board oversees implementation of the UN Global Compact's Integrity Measures. The vast majority of its members are business representatives (13 companies and two business associations). The Board is further comprised of two representatives of international labor organizations, four representatives of civil society organizations, the executive director of the Global Compact, and the chairman of the Foundation for the Global Compact.

A request by the group of civil society organizations to clarify the complaint in a brief presentation to the Board was denied. In his e-mail to the group the executive director of the Compact said: "On your request to make a presentation to the Board, this is not possible as the Board meetings are private. However, the matter will be raised and, as is our practice, the full report of the meeting will be available afterwards on our website."

Tuesday, March 17, 2009

World Water Forum starts with a bang: activists challenge CEO Water Mandate

By Mark Hays*.

Initiatives like the CEO Water Mandate allow corporations, not elected officials, to exert greater influence and control over global water policy.

Istanbul, Turkey – The 5th World Water Forum (WWF) is now in full swing in Istanbul Turkey. Water justice activists have convened from around the world to challenge the corporate driven agenda of the Forum while presenting an alternative vision for water justice that upholds and protects water as a human right and ecologist trust.

Such a response to the Forum is not new; every three years, the opening of each Forum has been marked by demonstrations, counter forums and other actions around the world that seek to challenge the role of private water corporations in setting the agenda for global water justice and policy.

The theme of this year’s forum, Bridging Divides for Water, is especially appropriate given the growing inequality in access to clean drinking water that plagues the planet. The UN estimates that currently a billion people in the developing world, mainly poor and marginalized communities, lack access to water and that figure is projected to grow to two out of three people in the near future.

However, the title of the Forum is ironic given the role of corporations in further creating “divides” in water, not bridging them. The Forum is organized by the World Water Council – an organization founded, led and influenced by transnational corporations, international financial institutions and their allies; all of whom have a stake in maximizing profits from water services delivery and the current global water crisis.

This year may prove to be a particularly challenging one for Forum proponents. More and more governments, NGOs, social movements, and other actors on the global stage are beginning to raise questions about the Forum’s legitimacy, and are calling on government leaders, including leaders of the UN, to move towards creating a more legitimate process and venue that fosters full democratic participation and decision-making regarding global water policy.

One stark illustration of the contrast between these competing visions for water policy is the meeting of the CEO Water Mandate in Istanbul, in conjunction with the Forum.

The CEO Water Mandate, an initiative launched in March 2008 and sponsored by the United Nations Global Compact Program, is presented to the world as an initiative by corporations and CEOs that encourages and enables corporations to take responsibility for their impact on global water resources. It is one of an increasingly dizzying array of ‘corporate social responsibility’ initiatives that make big promises about improving corporate practices, but in many cases have yet to deliver meaningful results. The Mandate is no exception.

To begin with, the companies that first launched CEO Water Mandate all have a vested interest in securing control over water sources and services in times of increasing water scarcity, and all have come under scrutiny for practices that have had hindered people’s access to water. A key player in the Mandate is Coca Cola, which has a highly questionable track record when it comes to water takings and water pollution. Suez, another signatory of the Mandate, is one of the world’s largest privatizers of water services. Nestlé is the world’s leading bottled water company, and Pepsico and Groupe Danone are also major players in the global bottled water industry. A host of other companies from the mining, timber, chemicals and other industrial sectors whose processes are inherently water intensive and impactful, are now signatories to the Mandate as well.

Perhaps more importantly, however, is that the Mandate itself has no mechanisms within it to allow ordinary people to hold corporations accountable for their actions. The program is a ‘voluntary’ initiative, meaning that ultimately the corporations involved have full say over how much they do or don’t do to honor the terms of the Mandate itself.

Last year, in response to the creation of the Mandate, NGOs from around the world signed and delivered a letter to Ban Ki-Moon, the Secretary-General of the UN urging him to withdraw UN support for the CEO Water Mandate because of its inherent conflicts of interest and lack of transparency.

The response from leaders of the Mandate was swift; there was an immediate acknowledgment of the short-comings of the Mandate as a real tool for accountability. However, the proponents of the Mandate have pushed on; they have developed a so-called Transparency Framework, which they claim will improve the level of disclosure by Mandate participants regarding their activities.

However, looks can be deceiving. While under pressure, the leaders of the Mandate have begun to develop these new processes, the Mandate continues to work closely with a series of hand-picked stakeholders, including a few friendly NGOs. In Istanbul, the agenda of the Water Mandate meeting includes a few opportunities for ‘external stakeholders’ to express their views or ask questions of the Mandate leaders – if, that is, they can afford to pay the minimum registration fee of upwards of US$300 that gets them inside the Forum (a steep admission price for many people from the developing world who stand to be impacted by these corporations’ practices).

Meanwhile, several events related to the CEO Water Mandate are closed door sessions off-site of the Forum, including several key meetings directly with the endorsers of the Mandate. It is clear that while the Mandate now has a public face that it presents to the world, the real decisions are still being made out of sight.

Global water justice organizations, including Corporate Accountability International and the Polaris Institute, are once again raising the call to challenge this corporate driven water initiative, and are calling upon UN leaders to withdraw from the program.

These groups point out that the UN itself is facing a contradiction on its positions regarding water. On the one hand, the UN General Assembly President Miguel D’Escoto Brockmann, has made it clear he is champion of the human right to water. He recently appointed leading water justice activist Maude Barlow from Canada as a Special Advisor to the UN General Assembly President on Water, and has called on the United Nations to explicitly recognize water as a fundamental human right.

On the other hand, initiatives like the CEO Water Mandate, threatened to undermine that right by allowing corporations, not elected officials and the people that they represent, to increasingly exert greater influence and control over global water policy.

Water justice activists around the world are looking to see how UN leaders, including UN Secretary General Ban Ki-Moon, will respond.

The call for transparency and accountability to the public, especially the billions of people worldwide without access to clean drinking water will echo throughout the World Water Forum this week in Istanbul. Water is the essence of life on this planet. As such, it is both a human right and an ecological trust. Any international policy should look to local communities and representative governments, rather than for-profit corporations, to set the global policy agenda and lead the development of solutions to the world water crisis. For that reason, water justice activists will be in Istanbul, Turkey all this week to demand change.

* Mark Hays is a senior researcher at Corporate Accountability International.

Source: AlterNet (16/3/2009)

Monday, March 16, 2009

CEO Water Mandate spurs mass protest

By Bobby Ramakant*.

Istanbul, Turkey - As the 5th World Water Forum (WWF) begins in Istanbul, activists, social movements and non-governmental organizations from Turkey and around the world are holding counter events and actions that directly challenge the legitimacy of the Forum itself.

As part of these actions, a group of 118 organizations from 33 countries has signed and issued a letter to United Nations Secretary General Ban Ki-Moon that calls on him to withdraw his support for the CEO Water Mandate, a corporate driven water initiative under the UN Global Compact that facilitates corporate control of water resources. Representatives of the letter's signatories will deliver a copy of the letter to and share their concerns with the participants of a CEO Water Mandate meeting in Istanbul at the World Water Forum on the evening of March 16th, 2009, at 6 p.m. in Hasköy Hall, in the VIP Block, on the 1st Floor of the Sütlüce Congress and Cultural Center.

"Those who are dealing with corporate control of water's manifold downsides – water takings, water shut-offs, price hikes, short cuts on water treatment – are people deeply affected by the water crisis and corporations' actions," said Mark Hays, organizer for Corporate Accountability International. "Yet these same people, who are going thirsty, don't have a true voice at these meetings – their voices need to be heard, and they should be in the drivers' seat."

The letter was delivered to the Secretary General last Thursday, and outlines the group's concerns about the transparency and legitimacy of the CEO Water Mandate.

Water justice activists are calling on the United Nations to take the lead in creating transparent, democratic space to decide international water policy. But to date, the UN continues to be in a contradictory position by, on the one hand, raising awareness about the world water crisis and calling for needed change, and on the other housing the CEO Water Mandate. Groups like the Polaris Institute and Corporate Accountability International are challenging the CEO Mandate because it allows corporations to undermine democratic control of water under the aegis of the United Nations.

The Mandate's leading endorsers currently include water bottlers Coca-Cola, Nestlé, and Pepsi, as well as Suez, one of the world's largest privatizers of water services and systems."All of these corporations have a vested interest in controlling water resources and profiting from water scarcity, so there is a great danger in leaving international water policy in such hands," said Richard Girard, researcher for the Polaris Institute."

While the corporate endorsers of the Mandate will be discussing this week how corporations can 'be part of the solution' to the water crisis by exerting more influence over global water policy, people around the world are saying loud and clear that corporations that profit from people's access to water should not be in driver's seat when it comes to decisions about who gets water and who doesn't," said Bobby Ramakant, letter signatory and spokesperson for the National Alliance of People's Movements (NAPM) of UP, India.

* The author is a senior development journalist, World Health Organization (WHO)'s WNTD Awardee (2008), and has been writing on health and development issues since 1991. He can be contacted at: bobbyramakant[at]yahoo.com.

Source: American Chronicle (15/3/2009) / © Photo by McKay Savage.