Why Is The Third World The Third World

WHY IS THE THIRD WORLD THE THIRD WORLD? REVISED, UPDATED 2009

Ideally, hard copies of the text material should be produced first to have the background material available for reference when reviewing these slides. The subjects are indexed on the next slide, and more fully on page 2 of the text. Slides are divided into groups by colored numbers on the upper left corners. Text location of slides are noted on the bottom left corners. Reference sources are noted at the bottom of each slide. Peter M. Crockford, M.D., F.R.C.P.C, F.A.C.P., Global Health Initiative, Faculty of Medicine & Dentistry, University of Alberta, Edmonton, Canada. Pg. 4

INDEX DEFINING THE THIRD WORD (White numbered slides 1-15, text pages 5-10) ORIGINS (White numbered slide 16, text page 11) PLACE (Green numbered slides 1-45, text pages 12--19) POPULATION (Violet numbered slides 1-31, text pages 20-30) POLITICS (Red numbered slides 1-6, text pages 31-33) I. POLITICS BY SWORD (Red numbered slides 7-34, text pages 34-43) II. POLITICS BY PEN (Yellow numbered slides 1-87, text pages 44-70) WHAT CAN ONE DO? (Blue numbered slides 1-10, text pages 71-74) Pg. 2

DEFINING THE THIRD WORLD 1 Pg.5

(UN Development Programme. http://www.undp.org/mdg and links; “Common Wealth”, J.D. Sachs, The Penguim Press, New York, 2008) 2 Pg. 6
Eradicate extreme poverty and hunger
Achieve universal primary education
Promote gender equality and empower women
Reduce child mortality
Improve maternal health
Combat HIV/AIDS and other diseases
Ensure environmental sustainability
Develop a global partnership for development
MILLENNIUM DEVELOPMENT GOALS

% change in per capita yearly income 1970-1979 1980-1989 1990-1999 5 4 3 2 1 0 -1 0.5%/year -0.4%/year -0.5%/year 2.5%/year 4%/year CONVERGING TRAPPED THIRD WORLD ECONOMIES (“The Bottom Billion”, P. Collier, Oxford University Press, New York, 2007) 4%/year 3 Pg. 6

4 Gross National Income (GNI) = Over period of time, total value of Goods produced Services provided including items such as military, pensions, welfare Return on foreign investment Gross Domestic Product (GDP) = GNI minus Return on foreign investment Pg. 6

GDP NOMINAL PER CAPITA 2007 Source: International Monetary Fund (IMF) as of April, 2008 (GDP nominal per capita. http://en.wikipedia.org/wiki/File:GDP_nonimal_per_capita_world_map_IMF_2007.PNG) 5 Pg. 7

Where the Extremely Impoverished Live (S. Chen & M. Ravallion. World Bank Policy Working Paper 4703, The developing world is poorer than we thought, but no less successful in the fight against poverty. http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2008/08/26/000158349...) 24.1% 1.7% 1.0% 27.4% 42.6% 3.2% 24.1% 6 Pg. 7

Millions of Extremely Poor Percent of Population REGION 1981 2005 1981 2005 East Asia & Pacific 1087.6 336.9 78.8 17.9 China 835.1 207.7 84.0 15.9 Eastern Europe & Central Asia 6.6 23.9 1.6 5.0 Latin America & Caribbean 44.9 45.1 12.3 8.2 Middle East & North Africa 14.9 14.0 8.6 4.6 South Asia 557.3 595.8 60.3 40.4 India 420.5 455.8 59.8 41.6 Sub-Saharan Africa 202.1 384.2 50.8 50.4 (S. Chen & M. Ravallion. World Bank Policy Research Working Paper 4703, The developing world is poorer than we thought, but no less successful in the fight against poverty. http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2008/08/26/000158349...) TOTALS 1913.4 1399.8 52.2 25.7 7 Pg. 7

1.4 BILLION PEOPLE TRY TO LIVE ON LESS THAN $1.25 PER DAY (WORLD BANK) Zimbabwe mother and child (S. Chen and M. Ravallion. World Bank Policy Research Working Paper 4703 http:econ.worldbank.org/docsearch; The Associated Press File photograph; article by B. Willis, Books and Authors, Edmonton Journal May 1, 2005) Pg. 8 8 20,000 died each day from extreme poverty when the threshold was $1.00 per day! Is that true today as well?

WHERE GNI, GNP, GDP MEASUREMENTS FAIL Lack recognition of inequalities between: sexes, age groups, urban and rural communities, etc. Exclude informal (non-taxed) work Include costs of: military and military action; work created by riots, war, environmental damage Include unsustainable resource loss Being purely financial, they don’t measure health, literacy and education Pg. 8 9

Equality diagonal Lorenz curve Percent of Total Income 100 50 0 25 50 75 100 Percent of Population A B Gini Index for Inequality Gini coefficient (GC) = A/A + B Gini index = GC x 100 10 ( “Economic Development” (9 th edition), M.P. Todaro & S.C. Smith, Pearson Addison Wesley, Boston, 2006; United Nations Human Development Report 2007/2008 http://hdrstats.undp.org/indicators/147.html) 75 25 Pg. 8

Beautiful Rio de Janeiro Contrasts the Gini coefficient finds: the yachts in the harbour, the penthouses with the views, and the favelas (slums) on the hillsides Pg. 8 11

Equality diagonal Percent of Total Income 100 50 0 50 100 Percent of Population Gini Index for Income Inequality Rough comparisons: Canada 32.6 Brazil 57.0 Namibia 74.3 12 (United Nations Human Development Report 2007/2008 http://hdrstats.undp.org/indicators/147.html) Pg. 8

Human Development Index (HDI) = GDP per capita in purchasing power parities ($U.S.), adult literacy rate & average enrollment into education up to 23 years, plus life expectancy at birth GDP HDI 10,000 8,000 6,000 4,000 2,000 Costa Rica Brazil South Africa Vietnam (UN Human Development Report 2007/2008. http://hdr.undp.org/en/statistics/...) 13 .850 .800 .750 .700 .650 .600 Pg. 9

FIRST WORLD ECONOMIC DOWNTURN THIRD WORLD GDP FALL FROM EXPORTS DIRECT FOREIGN INVESTMENT BANK LENDING Microcredit REMITTANCES Support of Relatives, Local Projects FOREIGN AID UNEMPLOYMENT AND POVERTY WITH… (“Crisis comes to Sylhet”, D. Saunders, The Globe and Mail, December 27, 2008) 14 Pg. 9

1950 1960 1970 1980 1990 2000 40 30 20 10 U.S. Genuine Progress Indicator U.S. Gross Domestic Product (GDP) (J. Venetoulis and C.Cobb, Redefining Progress initiative; diagram appeared in “Vital Signs 2005”, article by E. Assadourian, WorldWatch Institute, W.W. Norton & Co., New York, 2005) Genuine Progress Indicator U.S. dollars in thousands per person 2003 Pg. 9 15

The Concerns:
Place
Population
Politics
Pg. 11 16

1 PLACE Down to Zagora, Morocco Pg. 12

(Temperature lines derived from “Inside the Third World” 3 rd edition, P. Harrison, Penguin Books, London, 1993; GDP (Nominal) per capita from Wikipedia http://en.wikipedia.org/wiki/File:GDP_nominal_per_capita_world_map_IMF_2007.PNG) x x x x x 2 Yearly average temperatures greater than 20 degrees C Pg. 13 GDP (Nominal) Per capita 2007 TEMPERATURE VERSUS GDP 2007 GDP (Nominal) Per Capita Source: International Monetary Fund as of April, 2008 Note: Brazil’s recent economic growth now makes it a tropical exception

Northern summer Northern winter SUN 3 axis Pg. 13

23.5° Equator 4 Pg. 13 Solar rays

Pg. 13

Equator Temperature January July 6 ( “The Changing Geography of Africa”, A.T. Grove, Oxford Univ. Press, Toronto, 1989) Pg. 13 > 32ºC (90ºF) 24 - 32ºC (75 - 90ºF) 12 - 24ºC (54 - 75ºF) < 12ºC (54ºF)

Percentage Departures from Normal (Mean) Annual Rainfall 7 ( “The Changing Geography of Africa”, A.T. Grove, Oxford Univ. Press, Toronto, 1989) Pg. 13 < 15% 15 – 20% 20 – 25% 25 – 35% 30 – 40% > 40%

Rainfall Variability Monthly Annual 1 st World (temperate) 1.5 – 2.5 x* < 15% 3 rd World (tropical) up to 50+x* 15 – 40% * times 8 ( “Inside the Third World”(3 rd edition), P. Harrison, Penguin Books, London, 1993; “The Wealth and Poverty of Nations”, D.S. Landes, W.W. Norton & Co., New York, 1998) Pg. 13

A horizon (below humus layer) containing: roots & rootlets, mycorrhizal fungi, organic matter, minerals Transpiration Humus 9 Water flow Pg. 14

< 20º Temperate *not to scale Average temperature 10 A horizon Humus* Bedrock Other soil horizons A horizon Pg. 14

Humid rain forest at sunrise 11 Pg. 14

< 20º Temperate Tropical 20º – 25º+ 12 A horizon Pg. 14 Humus Bedrock

< 20º Temperate Tropical Exposed 20º – 25º+ > 25º 13 A horizon Pg. 14 Humus Bedrock

-5 -4 -3 -2 -1 0 1 2 South America Africa Asia Europe North & Central America Oceania 1990-2000 2000-2005 ANNUAL NET CHANGE IN FOREST AREA (million ha per year) 14 (“Global Forest Resources Assessment 2005”, Forestry Paper 147, United Nations Food and Agriculture Organization, Rome. www.fao.org/forestry/faris/data/fra2005/kf/common/GlobalForestA4-ENsmall.pdf)) * *Primarily as a result of large-scale afforestation reported by China Pg. 14

15 Pg. 14

Energy and Development ( “The End of Oil”, P. Roberts, Houghton Mifflin Company, Boston, 2004) 16 “ Developed world” 5 billion “undeveloped” world 2.5 billion burn bio-mass as sole source of energy! Laos Pg. 14

Dung patties and wood fuel, Namche Bazaar, Nepal 17 Pg. 14

Wood gathering, Ethiopia 18 Pg. 14

19 (New York Times article reprinted in “The Edmonton Journal”, December 2, 2004) Pg. 14

< 20º Temperate Tropical Exposed Deluge 20º – 25º+ > 25º > 25º Oxisols (laterite) Fe, Al oxides nutrient leach 20 A horizon Pg. 15 Humus Bedrock

Oxisol, Amazon basin 21 Pg. 15

Laterite walls of ruins near Sukhothai, Thailand 22 Pg. 15

(FAOSTAT data, graph adapted from “A long wait for farm growth”, The Africa Report, October-November, 2008) AFRICAN AND ASIAN FERTILIZER USE Average cereal yields (tons/ha) Fertilizer consumption (m tons) 1970 1975 1980 1985 1990 1995 2000 2005 4.0 3.0 2.0 1.0 Asia Asia Africa Africa 23 Pg. 15

Rice paddies, Indonesia 24 Pg. 15

Arable Land per Capita, 1999 - 2001 (The World Bank Group http://www.worldbank.org/data/maps/images/arableland.jpg; article from New York Times, reprinted in Edmonton Journal, August 16, 2005) 25 The need for more land Hectares per capita <0.10 0.10 - 0.19 0.20 - 0.29 0.30 - 0.49 ≥ 0.50 No data Pg. 15

1974-76 79-81 84-86 94-96 96-97 % change 200 100 China (192.3%) Asia (144.3%) India (130.5%) Europe (105.0%) S. America (117.2%) N./C. America (100%) Africa (96.0%) Food Production Per Capita (1979-81 Baseline) ( “Development as Freedom”, A. Sen, Anchor Books, New York, 1999; “Hungry for Trade”, J. Madeley, Fernwood Publishing Co. Ltd., Halifax, 2000) 90 26 Pg. 15

1974-76 79-81 84-86 94-96 96-97 % change 200 100 China (192.3%) Asia (144.3%) India (130.5%) Europe (105.0%) S. America (117.2%) N./C. America (100%) Africa (96.0%) 90 27 Influences on Food Production: Poor soils Desertification Salination Disasters and global warming Underfunded agriculture Foreign debt/export crops Financial speculation Lack of crop diversity Production of animal feed Health concerns, e.g. AIDS Neglect of women farmers Loss of fisheries Unequal distribution, famine Conflict Biofuel, plastics production? Food Production Per Capita (1979-81 Baseline) ( “Development as Freedom”, A. Sen, Anchor Books, New York, 1999; “Hungry for Trade”, J. Madeley, Fernwood Publishing Co. Ltd., Halifax, 2000; “Plastic Plants”, J. Thomas, New Internationalist, September, 2008; “Who caused the world food crisis?”, T. Corcoran, National Post, April 8, 2008) Pg. 14

Not the easiest job in the world. Landmine clearing crews, Siem Reap, Cambodia. Four million mines still desecrate its arable land. 28 Pg. 15

MYANMAR (BURMA) THAILAND Irrawaddy River Course of cyclone (hurricane) Low lying Irrawaddy delta where 65% of country’s rice is grown, most of 130,000 deaths occurred CYCLONE NARGIS MAY 2, 2008 (Diagram modified from that of The Globe and Mail, May 8, 2008, page A13; Burma: Seeing the Whole Story, The Guardian Weekly, October 8, 2008) 29 Pg. 16

FECES FLUIDS FIELDS FLIES FINGERS FOOD NEW HOST (“The Cinderella problem: thousands die every day for lack of sanitation”, J. Vidal, The Guardian Weekly, March21-27, 2008; “Toilets – The Facts”, New Internationalist, August, 2008) THE F-DIAGRAM 30 Pg. 16

31 Caught in the colonoscope’s glare – Trichuriasis (whipworm) causes anemia, weight loss, growth retardation, gastro-intestinal symptoms (Slide courtesy Dr. K. Kowalewska-Grochowska) Pg. 16

Malarial ring forms in human red blood cells. Malaria causes 900,000 deaths yearly in Africa, costs $12 billion yearly through impact on health and productivity. (Photograph courtesy Dr. S. Houston; J. Carlin,”War Against Malaria”, The Guardian Weekly, February 29, 2008; “One quick shot may not be enough”, The Economist, April 12, 2008.) 32 Pg. 16

Dengue fever is the “most important mosquito-borne viral infection affecting humans with 2.5 billion at risk.” (U.S. Centers for Disease Control and Prevention, September, 2005) 33 Siem Reap, Cambodia Pg. 16

34 (World Health Organization data 2001 (from Global Health Council http://www.globalhealth.org) Leading Causes of Death in Children Under 5 years of age Pg. 16 Perinatal (22%) All other causes (29%) HIV / AIDS (4%) Diarrhea (12%) Measles (5%) Malaria (8%) Pneumonia (20%) Malnutrition underlying factor (60%)

Mother and child, Cameroon. Mother died from AIDS. 35 Some of the AIDS educational challenges in Africa: traditions and beliefs perceptions of life and death witchcraft, ancestor punishment power hierarchies gender norms demands of male virility control of female sexuality pressure for widows to marry close relatives of husband dead from AIDS (Photo courtesy Dr. and Mrs. D. Lemke; “Our Common Interest: An Argument”, Commission for Africa, Penguin Group Canada, 2005) Pg. 17

(UNAIDS 2008 Report on the global AIDS epidemic. http:www.unaids.org/en/KnowledgeCentre/HIVData/GlobalReport/2008/…) Global HIV/AIDS Epidemic 2008 1990 95 2000 05 07 40 30 20 10 Millions 33m 22m 2m Living with HIV Sub-Saharan Africa Living with HIV Global Deaths Global 36 Pg. 17

Fractured upper arm -> no formal care -> vascular occlusion -> gangrene (Photo courtesy Dr. D. and Mrs. M. Lemke) 37 Pg. 17

Care not available until late (Photo courtesy Dr. D. and Mrs. M. Lemke) 38 Pg. 17

Studies in U.S. and Europe have shown productivity falls 50% when temperatures >35° (The Associated Press photograph, Edmonton Journal, May 19, 2005) 39 Pg. 17

(Diagram from “Physical Geology” (7 th ed), C.C. Plummer & D. McGeary, Wm. C. Brown Publishers, Times Mirror Co., Dubuque,1996) 40 Tectonic Plates Pg. 18 Map shows major fault lines between plates

TECTONIC MOVEMENTS (a) The transformation boundary , with slippage as along the San Andreas fault in California (b) The collision boundary , as in the Himalayas where the Indian land mass has converged with Asia 41 Pg. 18

(c) The subduction boundary with convergence , as seen around the Pacific “rim of fire” Volcanoes Mudslides Earthquakes Tsunamis Oceanic plate Continental plate 42 Pg. 18

(“Edmonton Journal”, October 9, 2005; number of dead quickly rose to over 70,000. Diagram from “Physical Geology” (7 th ed), C.C. Plummer & D. McGeary, Wm. C. Brown Publishers, Times Mirror Co., Dubuque, 1996) 43 Pakistan earthquake, October 9, 2005 Indonesian tsunami, December 26, 2004 Bam earthquake, Dec. 26, 2003 Pg. 18 The headline gave a low number – 80,000 died.

44 (Reprinted in the “Edmonton Journal”, May 27, 2004) In the Third World 35 metropolitan areas with populations 2 million or more are within earthquake zones Pg. 18

45 Percent 80 60 40 20 100 East Asia, Pacific Europe, Central Asia Latin America, Caribbean Middle East, North Africa South Asia Sub- Saharan Africa Developing countries High income countries Disaster (greater than 50 deaths or affected more than 100,000 people) Disaster-related deaths (USAID, OFDA 1999 in “World Development Report 2000/2001: Attacking Poverty”, World Bank, Oxford University Press, Toronto, 2001) Natural Disasters 1990-1998 Pg. 18

POPULATION Hmong children, Thailand 1 Pg. 20

(Picture from “Evolution: The Triumph of an Idea”, C. Zimmer, Harper Collins Publishers, New York, 2001) Population must increase because “the passion between the sexes is necessary and will remain” - Thomas Malthus London, England cartoon 1851 2 Pg. 21

1750 1800 1850 1900 1950 2000 2050 2008, estimated 6.6 billion 2050, UN projection 9.1 billion The era of Thomas Malthus 10 8 6 4 2 Population (Billions) ( “Economic Development (8 th edition)”, M.P. Todaro & S.C. Smith, Addison Wesley, Boston, 2003; “Population Newsletter”, UN Population Division, June, 2005 http://www.un.org/esa/population/publications/popnews/Newsletter_No_79.pdf) More and More Homo Sapiens 3 Pg. 21

1800 1850 1900 1950 2000 40 30 20 10 Birth rate Death rate Stages Of The Demographic Transition Birth and death rates per 1,000 in Western Europe (Adapted from “Economic Development” (8th edition), M.P. Todaro and S.C. Smith, Addison Wesley Publishers, Toronto, 2003) Stage 1 Stage 2 Stage 3 4 Pg. 21

Pre-industrial Europe Third World ↑ births, ↑ deaths ↑ births, ↑ deaths Economic development ↑ income Societal change, ↓ births Public health, ↓ deaths No or minimal economic development No / minimal income change No / minimal societal change No/minimal change in births (Children material, spiritual assets) Public health, ↓ deaths 5 Pg. 21

Population change (2005 equals 100) 250 200 150 100 50 1950 60 70 80 90 2000 10 20 30 40 2050 Years More developed Less developed Least developed Population Change and Predictions (Adapted from “World Population Prospects: The 2004 Revision”, Population Newsletter, UN Population Division, June, 2005 http://www.un.org/esa/population/publications/popnews/Newsltr_No_79.pdf) 6 Pg. 21

20 15 10 5 0 5 10 15 20 5 0 5 Italy Nigeria Male Female 80+ 70 - 79 60 - 69 50 - 59 40 - 49 30 - 39 20 - 29 10 - 19 0 - 9 Age 2008 Population estimates in millions (CIA – The World Factbook http://www.cia.gov/library/publications/the-world-factbook/...; U.S. Census Bureau, Population Pyramids http://www.census.gov/cgi-bin/ipc/idbpyry.pl?cty....) Representative Population Patterns 7 Fertility rate 1.3 Fertility rate 5.0 Pg. 21

8 (World’s Most Populous Urban Agglomerations:2005, Infoplease. http://www.infoplease.com/ipa/A0884418.html) LARGEST URBAN AGGLOMERATIONS 1 Tokyo 2 35.3 Mexico City 19.0 New York/Newark 2 18.5 Mumbai 18.3 São Paulo 18.3 Delhi 15.3 Calcutta 14.3 Buenos Aires 13.3 Jakarta 13.2 Shanghai 12.7 Dhaka 12.6 Los Angeles plus 2 12.1 Karachi 11.8 Rio de Janeiro 11.5 Osaka/Kobe 2 11.3 Cairo 11.1 Lagos 11.1 Beijing 10.8 Manila 10.7 1 Population in millions 2 Not in Third World Cairo with pyramids distant in the smog Pg. 22

9 EXAMPLES OF LARGE SLUM POPULATIONS % urban Number population (millions) Ethiopia 99.4 10.2 Sudan 85.7 10.1 Bangladesh 84.7 30.4 Nigeria 79.2 41.6 Peru 68.1 13.0 India 55.5 158.4 Philippines 44.1 20.1 China 37.8 193.8 Indonesia 23.1 20.9 Mexico 19.6 14.7 (“Planet of Slums”, M. Davis, Verso, New York, 2006) Pg. 22

1990 2001 2005 2010 2015 2020 T T T T T _ _ _ _ _ 5 4 3 2 1 Population (in billions) Slum Populations World Developing world Developed world & Eurasia (“Ideas on the Future of the World’s Cities”, P. Witcher, The World Urban Forum, UN Chronicle Online Edition. http://www.un.org/Pubs/chronicle/2006/issue2/0206p30.htm) 10 Pg. 22

Income, education, health, electricity Government funds 11 Addis Ababa Rural Ethiopia Pg. 22

10 20 30 40 50 60 70 80 90 100% Sub-Saharan Africa Burkina Faso Ghana Kenya Bangladesh India Philippines Thailand Guatemala Panama Paraguay Peru Asia Latin America Rural Poverty as a Percentage of Total Poverty* (World Bank, as reported in Economic Development (9 th edition), M. Todaro and S. Smith, Pearson Addison Wesley, New York, 2006) *2003 12 Pg. 22

750 600 450 300 150 43 159 265 275 308 434 473 269 382 158 91 111 Urban Rural Total Urban Rural Total *Darker colors millions served, lighter millions unserved; Rural and Urban Contrasts in Least Developed Countries, 2004 (WHO-UNICEF Joint Monitoring Programme, http://www/wssinfo.org/html_graphs/san_leastDev_graph.html) 13 Improved Sanitation* Improved Water Supply* Pg. 22

Percentage of Women Giving Birth by Age 20, by Level of Education None Primary Grade Secondary Grade Africa Latin America, Asia Caribbean (U.N. Population Fund. “State of the World Population 2003” http://www.unfpa.org/swp/2003swpmain.htm ) 14 100 75 50 25 Pg. 23

Lifetime Risk of Maternal Death One in: 15 16 43 100 160 360 770 4000 East/South Africa West/Central Africa South Asia Mid East, N. Africa Latin America, Caribbean East Asia, Pacific CEE/CIS* Industrialized countries (“State of the World’s Children” 2007: Women and Children”, United Nations Children’s Fund (UNICEF), New York, 2006) *Central and Eastern Europe/Commonwealth of Independent States 15 Pg. 24

Canada 1.57 China 1.7 Indonesia 2.3 Ethiopia 6.17 Replacement 2.1 Fertility Rate (Children Per Woman) India 2.9 Female literacy 35.1% GDI 0.393 Very limited contraception Agrarian (CIA – The World Factbook 2008 http://www.cia.gov/library/publications/the-world-factbook; UN Human Development Report 2007/2008 http://hdrstats.undp.org/indicators/269.htmlf; Development as Freedom, A. Sen, Anchor Books, New York, 1999; picture from Ethiopian postcard) Female literacy 100% GDI 0.956 Contraception education Industrialized 16 Pg. 24

9 19 10 24 7 22 10 22 13 63 Ethiopia Guatemala Wealth Quintiles Lowest Highest Public Sector Family Planning Users (A. Karim et al, presented at 11 th Annual Mtg., Can.Soc.Int.Health, Ottawa, October, 2004) 17 Pg. 24

Female literacy 86.5% GDI 0.776 Contraception education Work controls Infanticide Industrializing 18 Canada 1.5 China 1.77 Indonesia 2.3 Ethiopia 5.7 Replacement 2.1 Fertility Rate India 2.9 (CIA – The World Factbook 2008 http://www.cia.gov/library/publications/the-world-factbook; UN Human Development Report 2007/2008 http://hdrstats.undp.org/indicators/269.html; Development as Freedom, A. Sen, Anchor Books, New York, 1999) Pg. 24

Female literacy 86.8% GDI 0.721 Contraception education “Transmigrasi” Industrialization 19 Canada 1.5 China 1.7 Indonesia 2.34 Ethiopia 5.7 Replacement 2.1 Fertility Rate India 2.9 (CIA – The World Factbook 2008 http://www.cia.gov/library/publications/the-world-factbook; UN Human Development Report 2007/2008 http://hdrstats.undp.org/indicators/269.html; The World Guide (11 th edition), New Internationalist Publications, Oxford, 2007; Development as Freedom, A. Sen, Anchor Books, New York, 1999) Pg. 25

Average Age for Work Done by Children in Rural Java, 1977: 7 years, 9 months Caring for chickens, ducks 8 years, Caring for younger children 8 years, 9 months Fetching water 9 years, 4 months Caring for goats, cattle 9 years, 6 months Cutting fodder 9 years, 8 months Harvesting rice 9 years, 10 months Transplanting rice 12 years, 9 months Working for wages 13 years, Hoeing “ By age 10 or 12, boys and girls produce more than they cost. By age 15, most boys already have produced as much as they cost their families since birth.” Fertility rate in late 70s 5.5-6.0 (Quoted from “Helping Health Workers Learn” (12 th edition), D. Werner & B. Bower, The Hesperian Foundation, Berkeley, 2001) 20 Pg. 25

Female literacy 47.8% GDI 0.600 Contraception education Prior forced sterilization Infanticide Industrializing 21 Canada 1.5 China 1.7 Indonesia 2.3 Ethiopia 5.7 Replacement 2.1 Fertility Rate India 2.76 (CIA – The World Factbook 2008 http://www.cia.gov/library/publications/the-world-factbook; UN Human Development Report 2007/2008 http://hdrstats.undp.org/indicators/269.html; Development as Freedom, A. Sen, Anchor Books, New York, 1999) Pg. 25

“… fertility has fallen in the third world, with the steepest drops generally occurring in countries where economic growth has been highest, income distribution most equitable, the basic needs of ordinary people most attended to, and the status of women most improved.” Nepal Fertility rate 3.91 ( “Promises Not Kept”, 7 th edition, J. Isbister, Kumarian Press, Bloomfield, 2006; CIA – The World Factbook http://www.cia.gov/library/publications/the-world-factbook/2127rank.html) 22 - J. Isbister Pg. 25

Report from Statistics Canada, 2003 23 (J. Paraskevas, Edmonton Journal, October -, 2003) Pg. 25

World More developed Less developed Least developed Latin America and Caribbean Western Asia South-central Asia Sub-Saharan Africa Less developed excluding China 2000 2010 2020 2030 2040 2050 (“United Nations Population Fund 2003” http://www.unfpa.org/swp/2003/swpmain.htm) Peak of Demographic Window of Opportunity 24 Pg. 26

25 800 600 400 200 Northern Latin Sub-Saharan Europe Arab Asia & America America, Africa States Pacific Caribbean 2003 2050 (UN Population Division 2003. http://www.unfpa.org/swp/2003/swpmain.htm) Adolescent Populations Population between 10-19 years (millions) Pg. 26

Producer (Plants) Primary Consumer (Herbivores) Secondary Consumer (Humans) 10% Efficiency Casava preparation (in a new bowl), Amazon River village 26 Pg. 26

Protein-energy Malnutrition in Under 5-year Olds in Third World Stunting Underweight Wasting Africa 39% 28% 8% Asia 41 35 10 Latin America, Caribbean 18 10 3 Oceania 31 23 5 (U.N. Food and Agriculture Organization figures as found in “Malnutrition and health in developing countries”, O. Müller & M. Krawinkel, Can. Med. Assoc. J. 173:279, 2005) 27 Swaziland Pg. 27

Malnutrition with Kwashiorkor: wasting, edema, reddish hair and skin ulcers (Photo courtesy Dr. D. and Mrs. M. Lemke) 28 Pg. 27

Entitlement Food Production Food Purchase National lack of alternate employment or social safety net Speculative withdrawal Selective ↑ in purchasing power Government decrease in purchasing power National, local ↓ in production Some of Famine’s Roots (“Development as Freedom”, A. Sen, Anchor Books, New York, 1999; “Perilous Passage”, A. Bagchi, Rowman and Littlefield Publishers Inc., New York, 2005; Associated Press articles from Edmonton Journal August 6 and 13, 2005) Disease Drought, flood, pestilence War, civil unrest 29 Increased price Unemployment Loss of market or land ownership Pg. 27

Entitlement Food Production Food Purchase National lack of alternate employment or social safety net Speculative withdrawal Selective ↑ in purchasing power Government decrease in purchasing power National, local ↓ in production … and Added New Concerns (“Development as Freedom”, A. Sen, Anchor Books, New York, 1999; “Perilous Passage”, A. Bagchi, Rowman and Littlefield Publishers Inc., New York, 2005; articles from Victoria Times Colonist, April 23, 2008 and The Guardian Weekly, June 13, 2008) Disease Drought, flood, pestilence War, civil unrest 30 Increased price Unemployment Loss of market or land ownership Pg. 27 First World speculation, purchase Globalization Global warming Soil, fisheries loss Biofuels

0 0.5 1.0 1.5 2.0 Pakistan Syria Iran Germany Jordan Tanzania China U.K. Chad United States MAJOR REFUGEE HOSTING NATIONS UNHCR REPORT FOR 2007 (Article from The Guardian Weekly, September 5, 2008; United Nations Commissioner for Refugees http://www.unhcr.org/statistics.html) 31 Pg. 28

1 POLITICS Photo from Hulton Deutsch Pg. 31

Africa (“Guns, Germs and Steel” by J. Diamond, W.W. Norton and Co., New York, 1997; “The Birth of Plenty” by W..J. Bernstein, McGraw Hill Publishers, 2004) Temperate zone 50,000 years B.C. Plant, animal domestication 10,000 – 4,000 B.C. 2 Mediterranean Egypt Black Sea Persian Gulf Caspian Sea Turkey Iraq Iran Syria Jordan Saudi Arabia The Fertile Crescent Pg. 32

THE TRANSFER OF INNOVATION (“Guns, Germs and Steel”, J. Diamond, W.W. Norton and Company, 1997) 3 Transfer limited by isthmus of Panama, rainforest Transfer limited by desert, rainforest Pg. 32

Dates of Innovations Innovation Asia The West Cotton cloth or clothes 3 rd millennium B.C. (India) 16 th century Iron casting 2 nd century B.C. (China) 13 th century Planting with automatic seeder 1 st century B.C. (China) 1700 Curved iron plows 1 st century (China) 1700 Paper 2 nd century (China) 1150 Rotary fan for ventilation 2 nd century (China) 1556 Wheelbarrow 3 rd century (China) 1200 Porcelain 3 rd century (China) 1709 Watertight ship compartments 5 th century (China) 1790 Printing with wood blocks 8 th century (China) 1400 Gunpowder 10 th century (China) 13 th century Bombs 1000 (China) 16 th century Printing with movable type 1045 (China) 1440 Iron-clad warships 1592 (Korea) 1862 (“Thunder from the East”, N.D. Kristof & S. WuDunn, Vintage Books, New York, 2000) 4 Pg. 32

Africa (“Inside the Third World” (3 rd edition), P. Harrison, Penguin Books, London, 1993; “Guns, Germs and Steel”, J. Diamond, W.W. Norton and Co, New York, 1997.; “The Birth of Plenty”, W..J. Bernstein, McGraw Hill Publishers, New York, 2004) Temperate zones Development Third World conquest 50,000 years B.C. (Plant, animal domestication) (Includes European industrial revolution*) 5 * For textiles period was from 1770-1870. Required firm agricultural base, recognition of physical & intellectual property rights, knowledge of the scientific method, development of capital markets, speed of communication & transportation, recepient markets 1492 A.D. and beyond Pg. 32

Modernization theory Industrialized, developed nations’ social scientists emphasize absence of Third World democracy, capital, technology Dependency theory Third World countries emphasize growth in capitalist countries created Third World poverty in its wake Marxist theory Focuses on class structure in the Third World country Other references: “The Challenge of Third World Development” ( 3 rd ed.), H. Handelman, Prentice Hall, 2003; “The Wealth and Poverty of Nations”,D.S. Landes, Norton & Co., 1998; “Non-Western Theories of Development”, H.J. Wiarda (editor), Thomson Wadsworth Publishers, 1999; “Economic Development” (8 th ed.), M.P. Todaro & S.C. Smith, Addison Wesley Publishers, 2003; “From Free Trade to Forced Trade”, P. Urmetzer, Penguin Books, 2003; “Development and Disorder”, M. Mason, Univ. Press of N. Engl.,1997; “The Birth of Plenty”, W.J. Bernstein, McGraw Hill Publishers, 2004) 6 Some of the Theories: Major reference: “Promises Not Kept” (6 th edition), J. Isbister, Kumarian Press Inc., Bloomfield, Ill, 2003. Pg. 32

Politics by Sword 7 Pg. 34

Why Empire? The Pull… Adventure Fame Fortune (personal, company and country) The Push… Cecil Rhodes, noting England’s unemployment, poverty and class strife: “If you want to avoid civil war, you must become imperialists!” (“Inside the Third World” (3 rd edition), P. Harrison, Penguin Books; 1993; picture from Wikipedia http://en.wikipedia.org/wiki/Image:Cecil Rhodes.jpg) 8 Pg. 34

9 This map shows the 1494 boundary line cutting through the South American continent (http://www.hmbooks.ca/3rdworld/!0165brasile.jpg) TO PORTUGAL TO SPAIN Pg. 34

African Language Groups Afro- Asiatic Koisan Saharan Nilo- Niger-Congo (Bantu) Afro-Asiatic (H. Johnston in “Problems in African History”, R.O. Collins (editor), Markus Wiener Publishers, Princeton, 2005) Centres of some of the various dialects 10 Pg. 35

Hausa (Islamic) Yoruba (Animist) Ibo (Catholic) The three prominent ethnic groups among the 250 Nigeria 11 Pg. 35

12 Mount Kenya Mount Kilimanjaro (“Our Common Interest”, Commission for Africa, Penguin Group Canada, Toronto, 2005) Pg. 35

Common culture Emergence of middle class National market YES NO QUASI-NATION TRUE NATION 13 (“The Myth of Development”, O. de Rivero, Fernwood Publishing, Halifax, 2001) Pg. 35

14 TURKEY SYRIA IRAQ IRAN BLACK SEA CASPIAN SEA KURDISTAN Kurdistan, home of the Kurds – a country that doesn’t exist (“Struggle of the Kurds”, C. Hitchens & E. Kashi, National Geographic, August,1992, pages 32-61) Pg. 35

Mahatma Gandhi, 1916 “ Our languages are the reflection of ourselves, and if you tell me that our languages are too poor to express the best thought, then say that the sooner we are wiped out of existence the better for us. … every Indian youth, because he had reached his knowledge through the English language, lost at least six precious years… … even our wives are not the sharers in our best thought.” 15 (Gandhian Institute Bombay Srvodaya Mandal http://www.mkgandhi.org/index.htm; picture from Wikipedia http://en.wikipedia.org/wiki/Image:Mohandas_Gandhi) Pg. 36

Félix Houphouet-Boigny First President of Côte d’Ivoire, 1960-1993. No opposition parties were legal. “ The Ivory Coast’s First Lady is coiffed by one of the most exclusive Paris hairdressers…and dressed by Dior whose salon is strategically located across the street from (their) apartment…The affluent Houphouet-Boigny’s also have a villa in the stylish Swiss resort of Gstaad (her six-year-old adopted daughter is attending school in Switzerland).” (Picture only from http://e.wikipedia.org/wiki/F%C3%A9lix_Houphou%C3%ABt-Boigny; comments from“Development and Disorder”, M. Mason, Univ. Press of N. England, Hanover, 1997) 16 Pg. 36

17 Slaves being brought to the African coast. Picture source unknown Pg. 37

>1 million deaths 3 million displaced 250,000 rapes >1 million orphans 1 in 9 had AIDS Spill-over war continues in D.R. Congo today (Genocide Watch. Case Study: Genocide in Rwanda 1994. http://www.genocide.org/case_rwanda.html; “The DRC was the host of Africa’s first world war. Can it now hope for peace?”, C. McGreal and S. McCrummen, Washington Post and reprinted in The Guardian Weekly, May 30, 2008) 18 Rwanda, 1994 Pg. 37

“ It is an offence to manufacture salt wherever there are facilities for doing so. The possession and sale of contraband salt, which includes natural salt or salt earth, is also an offence… To carry away the natural deposits on the seashore is likewise violation of law.” - Mahatma Gandhi, 1930 19 (Gandhian Institute Bombay Srvodaya Mandal http://www.mkgandhi.org/index.htm) Pg. 37

“ The introduction of culture and industry among the Negroes is contrary to the known established policy of this country, there is no saying where this might stop, and that it might extend to tobacco, sugar and every other commodity which we now take from our colonies; and thereby the Africans, who now support themselves by wars, would become planters…..” - British Board of Trade, 1751 (Quote from “Global Rift”, R.S. Stavrianos, William Morrow and Co., Inc., New York, 1981) 20 Pg. 37

Percent of Total Area 100 50 0 50 100 Percent of Total Holdings Agricultural Land Distribution Gini index values: Bangladesh 42 Brazil 84* Venezuela 91* *latifundio-minifundio system (large-small landholders) (K. Otsuka et al., J. Economic Literature 30:1965, 1992; “Economic Development” (9 th ed.), M.P. Todaro & S.C. Smith, Pearson Addison Wesley, Boston, 2006) 21 Pg. 38

. 22 (Map modified from “The Opium Wars”, W.T. Hanes III & F. Sanello, SourceBooks Inc., Naperville, 2002; old photographs reproduced in “Opium Regimes”, T. Brook & B.T. Wakabayashi, Univ. of California Press, Berkeley, 2000 & “Narcotic Culture”, F. Dikötter et al, Univ. of Chicago Press, Chicago, 2004) ...ALL FOR A CUP OF TEA? The opium wars 1839-42, 1856-60 Hong Kong Peking Shanghai . . . . . . . . . . . . . . . . . . . . . . Some ports forced open by British . Opium – for rich or poor Pg. 38

British sign in captured Zhenjiang: Visit Sui-Shan “where opium is on sale very cheap – an opportunity not to be missed!” Bad advertising is not new! 23 (“The Opium Wars”, W.T. Hanes III & F. Sanello, SourceBooks Inc., Naperville, 2002) Pg. 38

By wars’ end 70% (?) of Chinese males using opium. Still 40 million Chinese addicts in 1939 (one tenth of population). (“The Opium Wars”, W.T. Hanes III & F. Sanello, SourceBooks Inc., Naperville, 2002) 24 Opium pipes Pg. 38

(South African vineyard; articles from Edmonton Journal May 19, 2006 on right and August 14, 2006 on left) 25 Pg. 39

France in Vietnam 26 Some of the mixed contributions of France: baguettes (postcard), architecture, Hao Lo prison, and the guillotine. Pg. 39

Per Capita Levels of Industrial Output Region 1750 1800 1830 1860 1880 1900 1913 Developed 8 8 11 16 24 35 55 U.K. 10 16 25 64 87 100* 115 France 9 9 12 20 28 39 59 U.S. 4 9 14 21 38 69 126 Canada – 5 6 7 10 24 46 3 rd World 7 6 6 4 3 2 2 China 8 6 6 4 3 2 2 India 7 6 6 3 2 1 2 * Set at 100 (“International Industrialization Levels from 1750 to 1980”, P. Bairoch, J. Europ. Econ. Hist. 11:294, 1982 and noted in “Promises Not Kept” (6 th edition), J. Isbister, Kumarian Press Inc., Bloomfield, 2003) 27 Pg. 39

Price of Agricultural Products* 1980 1990 2001 1000 500 (World Bank, Global Development Finance 2002, as quoted in “Who Owes Who?”, D. Millet and E. Toussaint, Fernwood Publishing, Nova Scotia, 2004) Ground nut oil ($/ton) Palm oil ($/ton) Rice ($/ton) Cocoa (cents/kg) Cotton (cents/kg) Coffee (cents/kg) Sugar (cents/kg) *In constant $ in 1990, and prior to the recent surge in price of primary food products 28 Pg. 40

(“Who Owes Who?”, D. Millet & E. Toussaint, Zed Books, New York, 2004 quoting IMF statement from April 15, 2002.) PRINCIPAL EXPORT PRODUCT SHARE OF EXPORT REVENUE 2002 Benin Mali Burkina Faso Chad Uganda Rwanda Ethiopia Nicaragua Honduras Malawi Mauritania Zambia Bolivia 0 25 50 75 100% Cotton Coffee Tobacco Fishing Copper Natural gas 29 Pg. 40

To the Americas from 1501: 9.5 million slaves delivered 40-50 million deaths en route Shades of the past: Charleston, South Carolina 30 Pg. 40

Effects Of The Slave Trade (Other Than Captivity and Death) “ Maleficent congealing of African political institutions and practices” “ Obstruction of traditional interregional trade within Africa” Prohibition of development of crafts, technical skills and factories Inhibition of cash crop agriculture Helped introduce the mythology of African ignorance Underpinning of European rule and capitalism Finance of the industrial revolution Entry of plants from the Americas (maize, etc.) into Africa (“Global Rift”, L.S. Stavrianos, William Morrow and Co., New York, 1981) 31 Pg. 40

(Associated Press article and photograph published in “Edmonton Journal”, March 8, 2005) 32 Pg. 40

The Effects of Empire National boundaries Imposition of European culture, language Impact on rule Destruction of local industry Displacement from lands, primary exports Slave trade Urbanization Public health 33 Pg. 41

The standard Mercator map exaggerates the size of Europe, places it on top of its conquests (Derived by combining maps by New Internationalist Publications, Toronto) 34 Pg. 41

1 Politics By Pen – The Politics of Lawyers and Accountants Pg. 44

Chapter XI, Charter of the United Nations, signed June 26, 1945 2 (Aescirian University Network http://aun.acscir.net/charter.htm) Pg. 44

1945 - Europe devastated by war; U.S. has 2/3 of world’s manufacturing, 1/3 of world’s gross product; United Nations Charter drawn 1946 – International Monetary Fund (IMF) and International Bank for Reconstruction and Development (IBRD) formed 1947 – India achieves independence 1952 – Alfred Sauvy coins term “Third World” as cold war deepens 3 Pg. 44

Strategic Poor Non-aligned Countries (THIRD WORLD) Capitalist Democracies (FIRST WORLD) Socialist Communist Countries (SECOND WORLD) (“The Debt Threat”, N. Hertz, Harper Collins Publ.; Jubilee 2000, www.jubileedebtcampaign.org) 4 Pg. 45

“ With the end of the Cold War, the Southern African region has witnessed the withdrawal of superpower intervention, the end of apartheid, the termination of conflict in Namibia and Mozambique, a 30 per cent decline in regional military expenditure, and the demobilization of tens of thousands of soldiers. However, the debts and costs of destruction that accumulated during the Cold War will remain a burden for generations to come. Children not yet born will have to pay the price of debt for wars they did not fight, for ideas they do not hold, for a regional and global system that no longer exists and for decisions made by regional and world leaders no longer in power.” - S. Willett, Campaign Against Arms Trade, May 1999 5 Pg. 45

6 Organization of The Petroleum Exporting Countries (OPEC) 1960 Founding Members: Iran, Iraq, Kuwait, Saudi Arabia, Venezuela Later Additions: Qatar, Indonesia, Libya, United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon (http://www.opec.org/aboutus/history/history.htm) Pg. 45

7 Moammar El-Gadhafi*, Libyan strongman who stirred the OPEC pot. (Picture from Wikipedia http://en.wikipedia.org/wiki/Image:Muammar_al-Qaddafi.jpg) *Spelt variously Pg. 45

1970 71 72 73 74 75 76 77 78 79 80 81 82 83 40 30 20 10 (Energy Information Administration http://www.eia.doe.gov/emeu/cabs/chron.html) War, Arab oil embargo Revolution in Iran Arabian production cuts U.S. hostages taken in Iran U.S. imported oil price per barrel 8 Pg. 45

“ The country does not go bankrupt. Any country, no matter how badly off, will own more than it owes.” Walter Wriston, President, Citibank “ I had many bankers chasing after me trying to lend me more money.” David Ibarra, Minister of Finance, Mexico “ As long as the country’s flag wasn’t black with a skull and crossbones on it or with a yellow banana on it, it was eligible for a loan.” Karl Ziegler, former employee, First Chicago Bank ( “The Debt Threat”, N. Hertz, Harper Collins Publishers, Toronto, 2004; “Odious Debt”, P. Adams, Probe International, Toronto, 1991) A loan was said to have been granted to Costa Rica on the basis of a single Time magazine article (Hertz) 9 Pg. 46

First world banks Tax havens Third world countries Rulers, elite Petrodollars Questionable projects (“Odious Debt”, P. Adams, Probe International, Toronto, 1991; “The Debt Boomerang”, S. George, Westview Press, Boulder, 1992; “Development and Disorder”, M. Mason, Univ. Press of N. Engl., Hanover, 1997) (Cupidity: thievery of Mobutu, etc. Argentina, Venezuela, Malaysia & Mexico would have been debt-free without capital flight) (Stupidity: military to control country; failed dams, steel plants, machinery, irrigation projects, etc. often due to lack of infrastructure) 10 Pg. 46

1970 71 72 73 74 75 76 77 78 79 80 81 82 83 40 30 20 10 14 12 10 8 6 4 2 U.S. imported oil price per barrel U.S. inflation rate using CPI (Energy Information Administration http://www.eia.doe.gov/emeu/cabs/chron.html; U.S. Federal Reserve Board) 11 Pg. 46

1970 71 72 73 74 75 76 77 78 79 80 81 82 83 40 30 20 10 14 12 10 8 6 4 2 16 4 10 7 13 U.S. imported oil price per barrel U.S. inflation rate using CPI U.S. one year interest rate (Energy Information Administration http://www.eia.doe.gov/emeu/cabs/chron.html; U.S. Federal Reserve Board; Wells Fargo Private Mortgage Bankiing http://www.annapolismortgage.com/ratesaverage.htm) 12 Pg. 46

THIRD WORLD Increased fuel costs for machinery, pumps, etc. Increased petroleum-based fertilizer, pesticide costs Increased debt load Recession with decreased commodity sales Wasted or stolen loans 13 Pg. 46

1970 1975 1980 1985 1990 1995 2000 800 700 600 500 400 300 200 100 Latin America and Caribbean East Asia and Pacific Middle East and North Africa Sub-Saharan Africa South Asia EXTERNAL DEBT (BILLIONS $ U.S.) (“Who Owes Who?”, D. Millet & E. Toussaint, Zed Books, New York, 2004 quoting World Bank, World Development Indicators 2001 and Global Development Finance 2002 from same source) 14 Pg. 46

Riches in the “resource trapped”, poor countries: Presidents Teodoro Obiang Nguema (Equatorial Guinea) Jose Eduardo dos Santos (Angola) Denis Sassou Nguesso (Republic of Congo) Omar Bongo (Gabon) (“Suit reveals African leaders lavish living”, H. Samuel, The Telegraph, article reproduced in “Calgary Herald”, July 16, 2008; photos from Wikipedia en.wikipedia.org; “Poisoned Wells”, N. Shaxson, Palgrave MacMillan, New York, 2007) 15 Pg. 47

TRANSPARENCY INTERNATIONAL CORRUPTION PERCEPTIONS INDEX 2007 Examples of the Best: … and the Worst: (Infoplease http://www.infoplease.com/world/statistics/2007-transparency-international-corruption-perceptions.html) 16 1 Denmark (9.4) Finland (9.4) New Zealand (9.4) 4 Singapore (9.3) Sweden (9.3) 7 Netherlands (9.0) Switzerland (9.0) 9 Canada (8.7) 11 Australia (8.6) 12 United Kingdom (8.4) 16 Germany (7.8) 17 Japan (7.5) 20 United States (7.2) 21 Belgium (7.1) 131 Yemen (2.5) 138 Pakistan (2.4) 143 Indonesia (2.3) Russia (2.3) 147 Angola (2.2) Nigeria (2.2) 150 Kyrgyzstan (2.1) 162 Bangladesh (2.0) 168 Congo (1.9) Sudan (1.8) 172 Afghanistan (1.8) 177 Haiti (1.6) 178 Iraq (1.5) 179 Somalia (1.4) Pg. 47

World Bank President, Robert Zoellick 17 (Both photographs from Wikipedia http://en.wikipedia.org) International Monetary Fund Managing Director, Dominique Strauss-Kahn Pg. 48

International Bank For Reconstruction And Development (IBRD)* International Development Association (IDA)* World Bank Group MULTILATERAL INVESTMENT GUARANTEE AGENCY International Centre for Settlement of Investment Disputes International Financial Corporation Multilateral Investment Guarantee Agency *World Bank generally taken to mean IBRD & IDA together (Based upon information from The World Bank Group http://web.worldbank.org) Settles investment disputes between foreign investors and their host countries Promotes private sector investment by supporting high risk sectors and countries Provides political risk insurance (guarantees) to investors in and lenders to developing countries Provides loans to higher income developing countries at less than commercial rates for poverty reduction, economic growth, social programs, environment; helps fund IDA Grants, interest free loans and technical assistance to low income countries for basic services 18 Pg. 48

% cumulative contributions by mid-2008 (examples): U.S. 22.02 Japan 19.38 Germany 11.40 U.K. 10.30 France 7.36 Canada 3.60 Sweden 3.20 S. Arabia 1.28 AAA rated bond and discount note sales to corporations, pension funds, banks, etc. 185 members Vote % e.g.: U.S. 16.38* Japan 7.86 Germany 4.49 U.K. 4.30 Canada 2.78 China 2.78 India 2.78 S. Arabia 2.78 Indonesia 0.94 International Bank for Reconstruction and Development International Development Association $10 - 15 billion/year Grants, interest free loans to low income countries (<$1025 per capita) with 10-year grace period, 20-40 years to repay. 78 countries eligible. $11.2 billion was committed in 2008. Plus “Heavily Indebted Poor Countries” Initiative (HIPC) Loans to middle-income developing countries at below commercial rates, 3-5 yr. grace on principal, 15-20 to repay 168 members Vote % e.g.: U.S. 12.52 Japan 9.83 Germany 6.49 U.K. 5.23 S. Arabia 3.32 India 3.04 Canada 2.74 China 1.90 In 2008 45 donors agreed to a larger $41.6 billion replenishment over 3 years. Major issues require 85% “super-majority” to pass * Some simplified currency flows (“What is IDA?” The World Bank. http://web.worldbank.org?WBSITE/EXTERNAL/EXTABOUTUS/IDA?... Membership & voting as of October, 2008) 19 Pg. 48

Borrowing From The IDA Requires: Relative poverty as indicated by GNI per person less than US $1,025 per year; Lack of creditworthiness to borrow on market terms; and Good policy performance, defined as the implementation of economic and social policies that promote growth and poverty reduction. (Based upon information from The World Bank Group http://web.worldbank.org and links) 20 Pg. 49

(Photograph http://en.wikipedia.org/wiki/Image:James_D._Wolfenshon_2003.jpg; address http://sitesources.worldbank.org/DEC/Resources/84797-1104785060391/looking back...) 21 James Wolfenson, then President, World Bank addressed 2004 joint meeting of Bank and IMF: “… in the 1950s and the 1960s it (development) was more often viewed as a process of accumulating physical or human capital, with the goal of increasing national income.” “… During the long macroeconomic crisis that started at the end of the 1970s poverty considerations were set aside. The neoliberal stream that dominated the 1980s downplayed distribution and poverty and insisted on re-establishing market mechanisms to promote growth.” He then moved on to note that the philosophy of the Bank had changed, “…moving toward country specific and flexible analysis and away from the twin dogmas of pervasive state control (1960s-1970s) and unregulated markets (1980s-early 1990s).” “ Even the understanding of poverty has broadened from a narrow focus on income and consumption to a multidimensional notion of education, health, social and political participation, personal security and freedom, environmental quality and so forth.” Pg. 49

MILLENNIUM DEVELOPMENT GOALS
Eradicate extreme poverty and hunger
Achieve universal primary education
Promote gender equality and empower women
Reduce child mortality
Improve maternal health
Combat HIV/AIDS and other disease
Ensure environmental sustainability
Develop a global partnership for development
(UN Development Programme. http://www.undp.org/mdg and links) 22 Pg. 49

“ The Millenium Development Goals (MDG) are a very simple but powerful idea whose time has come. They are in effect the international community’s effort to set the terms of globalization not solely driven by the interests of the strong, but managed in the interests of the poor.” “ They have helped provide a firm foundation for a much stronger new partnership between the UN system and the Bretton Woods Institutions.” - Mark Malloch Brown, UN Development Programme Administrator, speaking to joint IMF/World bank meeting, April 13, 2003 (UN Development Programme. http://www.undp.org/dpa/statements/administ/2003/april/13apr03.html) Nepal 23 Pg. 49

1990 2005 2015 1990 2006 2015 1990 2006 2015 1990 2006 2015 % People living on <$1.25/day % Primary education completion Mortality children <5 yrs/1000 % No access to clean water 60 40 20 100 50 75 180 120 60 50 25 0 MILLENNIUM DEVELOPMENT GOALS IN SUB-SAHARAN AFRICA Target Recent (World Bank. Progress on the MDGs: September 2008 update. http://web.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTGLOBALMONITOR...) 24 Pg. 49

(“Edmonton Journal”, April 14, 2005) 25 Pg. 49

(“What is IDA?”, The World Bank, http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/IDA/..., “Edmonton Journal”, April 14, 2005) 2005 new budget items for 3.3 million Albertans: $34.7 billion (Canadian) over 3 years, approximately equal to US $9 billion per year. 2008 IDA budget for one half the total Third World is US $11.2 billion! 26 Pg. 49

The multilateral development banks “have been most effective in contributing to the achievement of our global economic and financial objectives and thereby helping us in our long-term political/strategic interests.” (U.S. Treasury Department statement, 1982) “ American corporations received $1.35 in procurement contracts for each dollar the American government contributed to the World Bank and other multilateral development banks.” (Comment by W. Finnegan, Harper’s Magazine, May 2003 noting statement by Larry Summers, then of the Treasury Department, to Congress, 1995) 27 Pg. 49

“… Many shadow powers are on Wall Street, where the World Bank raises most of its funds, and leverages more money in special consortia. It pays strict attention to the wishes of private investment banks such as Goldman, Sachs and private credit rating agencies like Standard and Poor’s and Moody’s. These rating agencies base their judgments not on Bank effectiveness in aid, least of all in poverty reduction, but rather on Western governments readiness to guarantee Bank solvency.” - From “Give and Take”, D. Sogge, Fernwood Publishing, Halifax, 2002 28 Pg. 50

INTERNATIONAL MONETARY FUND 185 members Voting % examples & SDR* quota (rounded millions): G-7 Countries U.S.** 16.77 (37,149) Japan 6.02 (13,313) Germany 5.88 (13,008) France 4.86 (10,739) U.K. 4.86 (10,739) Italy 3.19 (7,056) Canada 2.89 (6,369) China 3.66 (8,090) India 1.89 (4,158) Indonesia 0.95 (2,079) S. Arabia 3.16 (6,986) Brazil 1.38 (3,036) S. Africa 0.85 (1,869) Nigeria 0.80 (1,753) Tanzania 0.10 (199) Global growth/stability through international macroeconomic surveillance & technical assistance Loan Facilities: Short term (2 ¼ -4 yrs), longer (4 ½ -7 yrs), supplemental large (2 ½ -3yrs) at basic rate plus increasing surcharge Compensatory for abrupt commodity price changes (3 ¼-5 yrs) at basic rate Emergency assistance (3 ¼-5 yrs) at basic or less Poverty Reduction and Growth Facility (5 ½-10 yrs) at 0.5% (International Monetary Fund http://www.imf.org and links. Membership, voting, quotas as of September, 2008) Gold reserve *Specific amounts of 4 major currencies in $US **super-majority veto Heavily Indebted Poor Country & Multilateral Debt Relief Initiatives World Bank Reduced debt payment to other lenders Some simplified currency flows Joint financial sector assessment program 29 Pg. 50

IMF Credit Outstanding 1970 1975 1980 1985 1990 1995 2000 2005 SDR (billions) Year-End 80 60 40 20 (Based upon International Monetary Fund http://www.imf.org/external/np/exr/facts/howlend.htm) Oil price increases Third world credit concerns Central, Eastern European transitions, “emerging market economies” crises 30 Pg. 50

Structural Adjustment Aims… …Some Avenues Increase exports Devaluation of currency Freeing of prices Privatization Decrease government wages Decrease government employees End subsidies Market deregulation Privatization Tax reform Trade reform Foreign investment reform Decrease budget deficits Increase economic efficiency 31 Pg. 50

*Largely in discussion are Thailand, Indonesia, South Korea, Malaysia; not China Anatomy of a Monetary Crisis (“Thunder from the East”, N. Kristof & S. WuDunn, Vintage Books, New York, 2000; “No-Nonsense Guide to Globalization”, W. Ellwood, New Internationalist Publishers, Toronto, 2001; “Globalization and Its Discontents”, J. Stiglitz, W.W. Norton & Co., New York, 2003; “World on Fire”, A. Chua, Anchor Books, New York, 2003) SE ASIA * 32 Pg. 51

SE ASIA 1980s: Foreign financial services, IMF, World Bank, U.S. Treasury push financial liberalization and freer capital flow 1990s: To varying degrees SE Asian governments accede to liberalization demands, raise interest rates, peg currencies to dollar The Build Up to the Crisis of 1997 33 Pg. 51

SE ASIA 1990s: Speculative money flows in Large build up of short term investments, e.g. Thai stock market, real estate inflate Bank lending to companies increases Increase in foreign debt (1997 $274B) The Arrival of “HOT” Money 34 Pg. 51

SE ASIA 1997: Speculative money pulled out ($105B leaves SE Asia) Thai real estate “bubble” collapses ($20B in unsold office buildings) starting string of financial failures Bank withdrawals leave banks shaky Foreign investors run “ Contagion” spreads from Thailand through region: SE Asian governments try to prop up currencies, support banks and industry, eventually devaluate The Crisis Begins 35 Pg. 51

SE ASIA 1997: Speculative money outflow also touches other 3 rd world countries Financial failures continue and spread Bank closures cause run on other Indonesian banks SE Asian governments  costs, employees, subsidies &  interest rates*, taxes; open doors to foreign purchasers IMF financial “rescue package” helps governments repay local banks so that they can pay foreign investors; introduces SAPs; closes 16 shaky banks in Indonesia Other 3 rd World countries *Malaysia ↓ interest rates, controlled currency more tightly opposing IMF and had less damage 36 Pg. 51

SE ASIA Results LOSERS: GDP % change average 1990-96, 1997 Indonesia +7.7, -16 South Korea +7.3, -5 Thailand +8.3, -7 Malaysia +8.7, -6 People: At height worst hit was Indonesia where- 20 million laid off, 100 million in poverty (4-fold increase), 250,000 clinics closed, 6 million out of school The IMF WINNERS: Foreign companies taking over of banks and industries at reduced costs, Currency speculators Gradual recovery of SE Asian countries with  democracy,  of cronyism, corruption, bank instability but with sacrifice of some national control, e.g. “Korea is now owned and operated by our Treasury” (Rudiger Dornbusch, US economist) OTHER LOSERS: IMF riots Racial scape-goats, departing/among dead (e.g. Chinese in Indonesia, Jews in Malaysia) 37 Pg. 51

“ Like some physicians, we were too busy – and too sure of ourselves – to listen to patients with their own ideas. Too busy, sometimes, even to look at individual countries and their circumstances. The economists and development experts of the Third World, many of them brilliant and highly educated, were sometimes treated like children. Our bedside manner was dreadful; and, as one patient after another couldn’t help noticing, the medicine we dispensed abroad was, in important aspects, not really the same stuff we drank at home.” - J. Stiglitz (J. Stiglitz. The Roaring Nineties, Penguin Books Canada Ltd., Toronto, 2003) 38 Pg. 51

3 rd World Nation Meets IDA, etc. criteria Poverty Reduction Strategy Paper World Bank & IMF guidance Approval by World Bank, IMF Boards Developed countries Other aid sources HIPC loan More Aid 39 (Based upon information at World Bank and IMF sites www.worldbank.org and www.imf.org) Pg. 51

Huge thyroid enlargement (goiter) surrounds the neck of an Ethiopian boy. Nutritional deficiency of iodine produced this enlargement causing difficulties eating and breathing. Surgery cancelled day picture taken – they were out of rubber gloves. 40 Iodine deficiency in Africa (Newsletter, Int. Council for Control of Iodine Deficiency Disorders, February, 2003) Pg. 52

Accepted by G-8 for Debt Relief : Afghanistan Honduras Benin Liberia Bolivia Madagascar Burkina Faso Malawi Burundi Mali Cameroon Mauritania Central African Republic Mozambique Chad Nicaragua Democratic Republic of Congo Niger Republic of Congo Rwanda Ethiopia São Tomé & Príncipe The Gambia Senegal Ghana Sierra Leone Guinea Tanzania Guinea-Bissau Togo Guyana Uganda Haiti Zambia Heavily Indebted Poor Country Initiative Sunset on the Zambezi …and on some debt 41 Pg. 52 (“Debt relief under the HIPC initiative”, IMF http://www.imf.org/external/np/exr/facts/hipc.htm)

Developmental, grant ≥ 25%* Multilateral institution (e.g. IDA) Third World Country Developmental, grant ≥25% OFFICIAL DEVELOPMENT ASSISTANCE (ODA) OTHER OFFICIAL FLOWS (OOF) BILATERAL AID *Grants include: debt relief, technical cooperation, humanitarian aid, contributions to NGOs, administrative costs, etc. (OECD Factbook 2008. http://titania.sourceoecd.org/vl=936602/cl=19/nw=1/rpsv/factbook/...) AID DEFINITIONS Non-developmental, e.g. military, export credits 42 Pg. 53

Bilateral development projects, programs & technical cooperation Multilateral ODA Humanitarian Debt forgiveness grants Iraqi, Nigerian debt forgiveness Asian tsunami, Pakistan quake (“Aid slipping out of reach”, OECD. http://www.oecd.org/dataoecd/47/25/41724314.pdf) Components of DAC Donor’s Net ODA 2000 2001 2002 2003 2004 2005 2006 2007 120 100 80 60 40 20 Constant 2006 U.S. dollars 43 Pg. 53

44 Also Includes: Debt cancellation; Issuance of new loans to pay old debts; Replenishment of development bank funds; Administration overhead; Cost of asylum seekers; Cost of 3 rd world students in 1 st world; “War on terror” Provides Funds For: Humanitarian needs (short term in war, upheaval, natural disasters and long term for poverty, human rights); Strategic socio-political purposes (client onside, maintain loyalty, etc.); Mercantile reasons (market opportunities, technical cooperation, expansion and protection of trade/investment); Common interests (crime, infection); Compensation for colonial acts ( “Give and Take”, D. Sogge, Fernwood Publishing Ltd., Halifax, 2002.; “The Debt Threat”, N. Hertz, Harper Collins, Publishers Ltd., Toronto, 2004; One World Aid Guide 2009 http://uk.oneworld.net/guides/aid?gclid=CJi4m860jpgCFRYiagodxyBp8A)) Official Development Assistance Pg. 53

Official Development Assistance as Percentage of Donor’s Gross National Income (GNI), 2007 0.5 1.0 UN target 0.7% GNI (OECD Development Co-operation Directorate http://www.oecd.org/document/8/0,3343,en_2649_34447_40381960...) 45 Norway Sweden Netherlands Denmark Ireland Austria Belgium Spain Finland France Germany U.K. Australia Canada New Zealand Japan Greece U.S.A. * U.S.A. is the largest donor (near $22B ), Germany next (over $12B), U.K. and France (each near $10B), Canada 10 th (near $4B) Pg. 53 *

Gross bilateral ODA* from DAC Countries 2004-2006 *Includes large debt cancellations for Iraq and Nigeria (OECD Factbook 2008: Economic, Environmental and Social Statistics. http://titania.sourceoecd.org/vl=936602/cl=19/nw=1/rpsv/factbook/100303-g2.htm) >23%* <36%* 46 Pg. 53

‘ CIDA brags on its own website: “70 per cent of its ODA is returned to Canada in the form of goods and services provided by Canadian firms; 30, 000 Canadians are sustained by our aid program; 2,000 businesses receive contracts from the federal government…”’ -P. Carrick, CAUSE Canada, Edmonton Journal, February 28, 2005 47 Pg. 54

Increasingly, aid is tied to requirements for democracy and good governance (W. Wakabi, “The Monitor”, Kampala, Uganda, May 17, 2005; courtesy Dr. L. Laing) 48 Pg. 54

2010 ODA promised in 2005 Actual ODA 2004-2007 (trend, excludes debt relief) 2004 2007 2010 120 100 80 ODA (2004 bn dollars (“G8 is $40 bn in arrears on African aid pledges”, T. McVeigh & J. Borger, The Guardian Weekly, June 20, 2008; “Aid targets slipping out of reach?”, OECD, http://www.oecd.org/dataoecd/47/25/41724314.pdf) 49 Pg.54

INDUSTRIALIZEDWORLD CORPORATION COMMERCIAL BANK EXPORT CREDIT AGENCY THIRD WORLD COUNTRY Risk-free loan repayment with interest if default ( “Give and Take”, D. Sogge, Fernwood Publishing Ltd.; “The Debt Threat”, N. Hertz, Harper Collins, Publishers Ltd., FoodFirst Backgrounder, vol. 9, no. 1 http://www.foodfirst.org/pubs/backgrdrs/2003/w03v9n1.html; ECA Watch http://www.eca-watch.org/eca/ecas_explained.html) 50 GOVERNMENT REVENUES Insurance, low interest loans, equity investment Loan at low commercial rate, but higher than World Bank BENEFITS TO CORPORATION: Reduced risk Subsidies Employment Profit BENEFITS TO THIRD WORLD COUNTRY: Product, perhaps unachievable otherwise At least temporary employment Technology CONCERNS: Increasing debt Negative effect on fledgling industries Graft Environmental effects Arms purchases Pg. 54

51 Also Includes: Debt cancellation; Issuance of new loans to pay old debts; Replenishment of development bank funds; Administration overhead; Cost of asylum seekers; Cost of 3 rd world students in 1 st world; “War on terror” Provides Funds For: Humanitarian needs (short term in war, upheaval, natural disasters and long term for poverty, human rights); Strategic socio-political purposes (client onside, maintain loyalty, etc.); Mercantile reasons (market opportunities, technical support; expansion and protection of trade/investment); Common interests (crime, infection); Compensation for colonial acts ( “Give and Take”, D. Sogge, Fernwood Publishing Ltd., Halifax, 2002.; “The Debt Threat”, N. Hertz, Harper Collins, Publishers Ltd., Toronto, 2004; One World Aid Guide 2009 http://uk.oneworld.net/guides/aid?gclid=CJi4m860jpgCFRYiagodxyBp8A)) Official Development Assistance Pg. 54 Export credit agencies with arms sales, etc.

40% 21% 22% 10% 7% (OECD, Joint BIS-IMF-OECD-World Bank Database reproduced by A. Goldzimer in “FoodFirst Backgrounder”, vol. 9, no. 1, 2003 <http://www.foodfirst.org/pubs/backgrdrs/2003/w03v9nl.html>) 52 Export Credits World Bank* IMF* Other multilateral Bilateral Official Debt: All Developing Countries *Reduced subsequently by 2005 G-8 agreement Pg. 54

(Cartoon by Austin, Manchester Guardian, at height of Darfur crisis, 2004) 53 Pg. 55 Blair is no longer Prime Minister. The U.K. was the top arms merchant in 2007, so the cartoon still applies.

54 (Associated Press article published March 26, 2005) Pg. 55 U.S. $63bn U.K. $53bn Russia $33bn France $17bn Germany $9bn Israel $9bn (R. Evans & R. Norton-Taylor. “UK is world’s top arms exporter (2007)”, The Guardian Weekly, June 26, 2008) Top global arms exporters over past five years

55 Luiz Inácio “Lula” da Silva, President of Brazil (“The Debt Threat”, N. Hertz, HarperCollins Publishers Ltd., Toronto, 2004; photo fromWikipedia http://en.wikipedia.org/wiki/Image:PresidentLuladaSilva.jpg) This former laborer, thought “socialist” with “unfriendly” financial policies, so frightened the money markets in 2002 that interest rates on Brazilian debt rose from 7% (4% of GDP) to 24% (15% of GDP, one-half of all taxes) when it appeared he would be elected. Interest rates are now far lower. He wasn’t so frightening after all! Pg. 55

SPECULATIVE MONEY TRADERS (BANKS, OTHERS) $1.5 TRILLION/DAY! THIRD WORLD & OTHER CURRENCY VALUES, INTEREST RATE FLUCTUATIONS MILLENNIUM DEVELOPMENT GOALS MAKING MONEY FROM MONEY ALONE * * 80% of speculative transactions less than one week; 40% 2 days or less (R. Round in “No-Nonsense Guide to Globalization”, W. Ellwood, New Internationalist Publications, Toronto, 2001; D. Hillman et al, Stamp Out Poverty, “Implementing a Currency Transaction Development Levy” http://www.globalpolicy.org/socecon/glotax/currtax/...) 56 Pg. 56 CURRENCY TRANSACTION DEVELOPMENT LEVY

Exports Border Imports FREE TRADE is present when there is no government interference and only the market decides the price. QUOTAS limit the quantity of a specific good which may be imported over a determined period of time. TARIFFS are taxes placed on imports to protect local producers from foreign competition. SUBSIDIES are government payments to producers allowing them to compete internationally. Recipient country may respond by adding “countervailing” duties (taxes). Rich countries can afford to pay subsidies; poor countries can’t. DUMPING occurs when a country sells a product below cost, perhaps to get a foothold in the market. Recipient country may respond by adding anti-dumping duties. Unjustly accusing other countries of dumping can be a form of protectionism. BANS are introduced to keep harmful goods out of a country. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ ¢ ¢ $ The Trade Game 57 $ $ $ $ Pg. 56

(Calgary Herald editorial, August 4, 2003 using OECD, ODA figures from that year) 1.6 0.8 European U.S. Canada Union Agricultural subsidies as percentage of GDP 1.7 0.9 0.7 * 2.6 billion people live on less than $2 per day 58 Pg. 57 *

60 40 20 Winter Spring Summer Fall Labor in hours per acre U.S. Labor Before Mechanization 20 Now Labor in U.S. Cotton Production “… he did not believe that there was a mechanical picker in all of Africa.” - comment by Terry Townsend, International Cotton Advisory Committee to P. Rivoli (Graphs from R.H. Day, reproduced in “The Travels of a T-Shirt in the Global Economy”, P. Rivoli, J. Wiley & Sons, Inc., Hoboken, 2005) 59 Pg. 57

North Carolina in the rain. Never a financial rainy day for cotton 3-4 billion dollar subsidy 25,000 cotton producers Increased cotton production Injury to 10 million African farmers Decreased income of all those who supply farmers (“Fair Trade for All”, J.E. Stiglitz & A. Charlton, Oxford Univ. Press, Toronto, 2005; “Making Globalization Work”, J.E. Stiglitz, W.W. Norton & Co., New York, 2006) Low cotton prices 60 Pg. 57

(“Fatal Indifference”, R. Labonte & T. Schrecker, IDRC, Ottawa, 2004; “Navigating a New World”, L. Axworthy, Knopf Canada, Toronto, 2003; “Promises Not Kept”, 6 th ed., J. Isbister, Kumarian Press, Bloomfield, 2003; “From Free Trade to Forced Trade”, P. Urmetzer, Penguin Books, Toronto, 2003; Oxfam International report April, 2002) FIRST WORLD PRODUCER FIRST WORLD CONSUMER THIRD WORLD PRODUCER THIRD WORLD CONSUMER Consumer buying power Subsidies easing sales Limited consumer buying power Tariffs, quotas limiting sales 61 Pg. 57

General Council Meeting As Trade Policy Review Body (World Trade Organization http://www.wto.org/english/thewto_e/whatis_e/tif_e/org2_e.htm) Ministerial Conference General Council Meeting As Dispute Settlement Body Appellate body dispute settlement panels Council for Trade in Goods Council for Trade-Related Aspects of Intellectual Property Rights Council for Trade in Services Committees or working parties on: Trade & environment Trade & development Regional trade Balance of payments Budget & finance Trade, finance & debt Trade & technology Etc. Committees on: Market access Agriculture subsidies & countervailing measures Anti-dumping practices Customs valuation Rules of origin Trade-related investment measures Etc. Committees or working parties on: Trade in financial services GATS rules Etc. Doha Development Agenda: Trade negotiations committee Etc. General Council 62 Pg. 57

(Reprinted in Edmonton Journal, January 3, 2004) Kung Hae Lee, Korean farmer, protesting at WTO meeting, before fatally stabbing himself 63 Pg. 58

As the WTO falters, regional trade agreements increase: 1960 70 80 90 2000 07 200 150 100 50 Diagram adapted from “Regional Trade Agreements: A second-best choice”, The Economist, September 6, 2008 Text by Heather Stewart from The Guardian Weekly, August 8, 2008. 64 Pg.58

“ ...the WTO needs improved transparency, management, and organization. ” -July 6, 2000 “ Can the WTO be led? Or is it, as I said after a long night in Seattle, a medieval (and thereby ungovernable) institution? ” -April 13, 2002 “ Despite the commitment of many able people, the WTO remains a medieval organization. ” -after failed WTO meeting in Cancun, Mexico,September 14, 2003 Comments made by Pascal Lamy, before becoming Director General, WTO (Ian Austin, Canadian Business, May 23, 2005; photograph from http://europa.eu.int/comm/mediatheque/photo/commprodi/lamy/lamy_1_1.jpg) 65 Pg. 58

HIV/AIDS in South Africa 2007 5.7 million infected including: 3.2 million women 280,000 children 350,000 deaths from AIDS 1.4 million orphans (UNAIDS: 2008 Report. http://www.unaids.org/en/Country Responses/Countries/south_africa.asp) Getting the message out Soweto, South Africa 66 Pg. 58

Nations Transnational corporations 1900 1950 1970 1990 2000 Years (non-linear scale) 60 40 20 Transnational Corporations (thousands) Nations 220 63,000 (Adapted from “Globalinc.”, M. Gabel & H. Bruner, The New Press, New York, 2003) 62 3000 300 200 100 The Rise of Transnational Corporations 67 Pg. 59

68 TRANSNATIONAL CORPORATIONS Unweighted Benefits Employment Capital influx (Local and national economies) Technology introduction Potential Negatives Control of resources Domination of industry/industrial infrastructure Mobility Loss of profits from country Currency manipulation Cultural Pg. 60

(Photo Yue Lizhong, Bloomberg News, article Haris Anwar, Globe and Mail, May 31, 2005; Susan Ferriss, Cox News Service, Edmonton Journal, November 23, 2003; photo Kham/FA/Reuters, article N. Norbrook, The Africa ReportOctober-November, 2008) 69 Pg. 61 The Search for Profits From Mexico… to China… and then, Vietnam…

First World Nation TNC head office Transfer pricing OFC EPZ EPZ EPZ Transfer pricing EPZ Export processing zone OFC Offshore financial centre TNC Transnational corporation Financial flow ( ) Product evolution Management 70 (“Global Inc.”, M. Gabel & H. Bruner, The New Press, New York, 2003; “Transfer Pricing” UNCTAD, New York, 1999; “Offshore”, W. Brittain-Catlin, Picador, New York, 2006) Pg. 61

Product profit* expenses Paperwork Tax haven First world nation profit** expenses profit expenses * tax on profit may be negligible or zero in export processing zone (EPZ) OFFSHORE FINANCIAL CENTRES (TAX HAVENS) SIMPLIFIED 71 Third world nation EPZ ** including intellectual property charges Pg. 62

Edmonton Journal Clipping, March l6, 2005 … and Canadian banks are relatively small 72 Pg. 62

Average Yearly Third World Dollar Inflows and Outflows 2002-2006 (European Network on Debt & Development. Eurodad fact sheet: Capital flight diverts development finance. http://www.eurodad.org/uploadedFiles/Whats_New/...) Inflow: $857 bn Outflow: $1205 bn $84 bn $167 bn $226 bn $380 bn $619 bn $456 bn $130 bn Global ODA Third World migrant remittances Net Foreign Direct Investment (FDI) New loans Illicit flows (estimate) Debt servicing Profit remittances on Foreign Direct Investment (FDI) 73 Pg. 62

From R. Wilkinson, “ How Can Secular Improvements in Life Expectancy be Explained?”, in “Health and Social Organization”, D. Blane et al, editors, Routledge Publications 74 Pg. 64

Epidemiological transition Epidemiological transition Degenerative disease, Degenerative disease, cancer Infectious diseases 75 Pg. 64

76 Fragile Stable Democracy vs. Income for 135 Countries 1950-90, A. Przeworski et al. Literacy 50%? DEMOCRACY VS. LITERACY Democracy vs. Income And Literacy, M. Seligson Pg. 64

Prosperity Citizen Empowerment Democracy (“The Birth of Plenty”, W.J. Bernstein, McGraw Hill Publishers, New York, 2004) Property Rights Scientific Rationalism Capital Markets Transportation & Communication 77 Pg. 64

1950 1960 1970 1980 1990 2000 30 20 10 Per cent incidence of civil war* Sub-Saharan Africa Other Developing Countries (Derived from diagram in “Breaking the Conflict Trap: Civil War and Development Policy”, P. Collier et al, World Bank & Oxford Univ. Press, Washington, 2003 using data from N.P. Gledtisch et al. in “Armed Conflict 1946-2001: A New Dataset”, Peace Res. 39:615-37, 2002) 0 78 *based upon Uppsala University dataset definitions Pg. 64

100 85 Average per cent change in GNI (World Bank, “Breaking the Conflict Trap”, Oxford Univ. Press; P. Collier & A. Hoeffler, “Greed and Grievance in Civil Wars”, Working Paper Series, Centre for the Study of African Economies) 79 Consequences of Civil War Peace / pre-war Post-war Pg. 65

3000 2000 1000 Peru El Salvador Nicaragua Angola Congo Burundi GDP (U.S. dollars) Before civil war Following civil war (“Using Case Studies to Expand the Theory of Civil War”, N. Sambanis, paper for World Bank and Yale University case study project “The Political Economy of Civil Wars”) 80 … and some fair worse than others Pg. 65

Annual per cent probability of renewed civil war 10 5 Marginalized country Successful developers 40 20 Per cent risk of renewed civil war % GDP military spending Risk of Renewed Civil War 2.87 5.74 (World Bank, “Breaking the Conflict Trap”, Oxford Univ. Press; P. Collier & A. Hoeffler, “Greed and Grievance in Civil Wars”, Working Paper Series, Centre for the Study of African Economies) Peace / pre-war Post-war 81 10 5 Pg. 65

20 10 17.1% 14.5% 12.3% Typical low-income country Country with additional 2% growth short term Country with additional 2% growth sustained 10 years (P. Collier and A. Hoeffler: “Greed and Grievance in Civil Wars”, Working Paper Series 2002-01, Centre for the Study of African Economies, Oxford, U.K. http://www.csae.ox.ac.uk) 82 Percent Risk of Civil War within 10 Years Pg. 65

39% 22% 39% 18% 27% 55% Autocracy Intermediate Democracy 1990 2003 UN Reported Democratic Progress (Human Development Report 2005. http://hdr.undp.org/reports/global/2005/pdf/HYDO5_HDL.pdf) 83 Pg. 60

1990 1995 2000 2005 08 140 120 100 80 60 NUMBER OF DEMOCRACIES WORLDWIDE* (Freedom House data, graph adapted from “It never stays long”, The Economist, January 17, 2009) *Freedom House Report 84 Pg. 65

Fragile Stable Democracy vs. Income for 135 Countries 1950-90, A. Przeworski et al. Literacy 50%? DEMOCRACY VS. LITERACY Democracy vs. Income And Literacy, M. Seligson HAITI TODAY : Longevity 57.6 years GDP per capita $1400 Literacy 52.9% 85 (CIA World Factbook http://www.cia.gov/library/publications/the-world-factbook; UNdata http://data.un.org/Country Profile...) Pg. 65

“ People are so poor and hopeless that they are always seeking a messiah…and there is little that a politician can actually do.” - Danny Laferriere, Haitian journalist (As quoted by Benoit Aubin in “Montreal’s Haitians United in Disappointment Over Aristide”, Macleans, March 15, 2004) 86 Pg. 65

“ Overcoming poverty is not a gesture of charity. It is an act of justice!” Pg. 66 87 February 3 rd , 2005. A cold night, Trafalgar Square, London. An overflowing crowd of thousands. Nelson Mandela….

WHAT CAN ONE DO? 1 Pg. 71

“ A first step is to get alternative sources of information.” (As stated by F. Lappé, J. Collins, P. Rosset with L. Esparza. “World Hunger: Twelve Myths” (2 nd ed.), Grove Press, N.Y., 1998) 2 Pg. 72

“ We insist on a program environment that reinforces our corporate messages.” - Manager of Corporate Communications, General Electric (owner of NBC) (As quoted in “The Media Monopoly” (3 rd ed), B.H. Bagdikian, Beacon Press, Boston, 1990) 3 Pg. 72

“ By 1990 , publishers of mass circulation daily newspapers will finally stop kidding themselves that they are in the newspaper business and admit that they are primarily in the business of carrying advertising messages.”
A.R. Megary, then publisher, The Globe and Mail, Canada
(As quoted in “The Media Monopoly” (3 rd ed), B.H. Bagdikian, Beacon Press, Boston, 1990) 4 Pg. 72

Not really, when the World Bank’s data indicates that 1.4 billion are trying to survive in “extreme poverty” – the equivalent of $1.25 per day – as part of the total 2.6 billion (one-half of the Third World) living on $2.00 daily or less! (Article by John Geddes, Macleans magazine, 2007; World Bank. http://siteresources.worldbank.org/DEC/Resources/ Poverty-Brief-in-English.pdf) 5 Pg. 72

Fragile Third World nation Failure of progress in MDGs, civil war Neighboring nations Refugees, spin-off wars, criminality, disease, impaired development Other nations Refugees, disease, criminality, terrorism, peacekeeping and aid costs “ WAVES OF DANGER” (“Fragile States: Securing Development”, speech by R.B. Zoellick, President, World Bank Group, September 12, 2008 http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/ORGANIZATION?EXTPRESIDEN...) 6 Pg. 72

2002 03 04 05 06 2007 3.0 2.0 1.0 N. Africa & Middle East Europe& Central Asia East, South & South-east Asia Latin America & Caribbean Sub-Saharan Africa Anti-AIDS Treatment in Low & Middle Income Countries (World Health Organization. Slide adapted from “AIDS: Getting the message”, The Economist, June 7, 2008) Millions 7 Pg. 73

Nobel laureate Muhammad Yunus. It all started with a loan of twenty-seven dollars. (Wikipedia. http://en.wikipedia.org/wiki/Muhammad_Yunus) 8 Pg. 73

THIRD WORLD DEBT (http://www. jubilee2000uk.org/about/about.htm) 9 JUBILEE 2000 3 RD WORLD DEBT CAMPAIGN GOAL THE WORLD’S LARGEST PETITION, WITH 24 MILLION SIGNATURES IN MORE THAN 60 COUNTRIES, IT HAS HELPED FORCE THE G-7 TO COMMIT TO $100 BILLION IN DEBT REDUCTION Pg. 73 IT STARTED WITH A FEW STUDENTS…

“ Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it’s the only thing that ever has . ” - Margaret Mead 10 (Photo from Wikipedia http://en.wikipedia.org/wiki/Image:Margaret_Mead.jpg) Pg. 74

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Why Is The Third World The Third World

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Why Is The Third World The Third World Presentation Transcript