Poor Need More Help To Adapt To Warming - Wolfowitz

“The world is pouring money into the battle to slow climate change but doing too little to help the poor adapt to it, World Bank President Paul Wolfowitz said on Tuesday. …  

With billions of dollars pouring into emissions trading and the Kyoto Protocol's Clean Development Mechanism to cut the greenhouse gases entering the atmosphere, the world's poorest people are being forgotten in the green goldrush. Wolfowitz said the reason for the imbalance was that while there were trading mechanisms to deal with mitigation - cutting emissions of climate changing gases like carbon dioxide - there was nothing similar to help people survive its effects. …  

Carbon emissions trading is forecast to be worth some $200 billion a year before long - with half flowing to the developing world. That is far more than what is currently spent on development aid but is in turn dwarfed by the $1.5 trillion that the world spends on oil alone. ‘One of the things that we are going to have to do is pay more attention to adaptation in our basis work,’ Wolfowitz said. ‘We are trying to climate-proof our own projects as far as possible. He said he expected a major growth in public-private investment projects, with the World Bank active on both sides of the equation. …” [Reuters/Factiva]

The FT reports that Wolfowitz’s call for ‘a global framework’ on cutting greenhouse gas emissions “… stopped short of calling for a global mandatory cap on emissions but [he] said he wanted ‘a framework that allows carbon markets to thrive and bring financial flows to developing countries to the tune of $100 billion within a few decades.’ Such flows have been predicted for the carbon trade under the Kyoto protocol, which [US President George W.] Bush has rejected. The Bush administration has also consistently rejected calls for a ‘global regulatory framework’ on emissions, insisting instead on signing bilateral and some multilateral deals with countries such as China, India and Japan.

In his strongest remarks yet on climate change since taking over at the World Bank in June 2005, Wolfowitz said: ‘Today, we are faced with compelling evidence that our consumption of fossil fuels is seriously hurting the environment - and the longer we delay action, the more costly it will be to try to correct it.’” [The Financial Times (UK)]

In related news, NYT writes that “As nations and politicians in many parts of Europe compete to burnish their green credentials, Britain on Tuesday became the first national government to propose binding laws enforcing a steep cut in carbon emissions, in this case a 60 percent decrease by 2050. If approved, the draft Climate Change Bill could affect many Britons in many ways. Officials might be summoned to appear before judges for failing to meet targets, households could be pressed to switch to low-energy light bulbs and install home insulation, and manufacturers could be asked to build TV sets without standby modes that consume energy when the devices are not in use. … Although the global warming caused by Britain is considered modest, the nation has striven to put itself at the forefront of efforts to address what Prime Minister Tony Blair on Tuesday called ‘the biggest long-term threat facing our world.’ …” [The New York Times/Factiva]

AP adds that “… Blair hopes Germany - which holds both the EU and the Group of Eight presidencies - and Britain can lead work on a new global pact to curb emissions. The next step is getting the US, China and Indiato make similar commitments, he said. The bill must be approved by both houses of Parliament to become law. The government hopes it will be enacted in the first half of next year. …” [The Associated Press/Factiva] 

Destruction of Forests In Developing World ‘Out Of Control’

“Progress in forest management in the industrial world is being overwhelmed by accelerating deforestation in the developing world, a global report from the United Nations has revealed.  

Many countries in Europe and North America have been able to reverse centuries of deforestation and even, in some cases, increase their forest cover, according to the UN’s Food and Agriculture Organization (FAO) [in its State of the World's Forests 2007 report]. But the global picture is blighted by uncontrolled felling in poorer countries - home to the majority of the world’s forests.

‘Many countries have shown the political will to improve forest management by revising policies and legislation and strengthening forestry institutions,’ said David Harcharik, FAO’s Assistant Director General. … But researchers from the FAO, which releases an annual survey of the world’s forests, found that enormous tracts are still disappearing from the developing world. …” [The Independent (UK)/Factiva]

Indo-Asian News Service reports that “… According to the report, the world lost three percent of its total forest area between 1990 and 2005, an average decrease of 0.2 percent per year. The net rate of loss has declined slightly since 2000 thanks to forest planting and natural expansion of forests, but deforestation continues ‘at an alarming rate’ of about 13 million hectares a year, the report found. The world now has just less than 4 billion hectares of forest, covering about 30 percent of its land area. While illegal logging, conflict and poverty pose some of the biggest hazards, ‘evidence is mounting that forests will be profoundly affected by climate change.’ ….” [Indo-Asian News Service (India)/Factiva]

Reuters adds that “… Deforestation accounts for 18 percent of the carbon dioxide produced each year, a significant proportion of the emissions scientists say are causing global warming which also poses risks to forests via increased fires and the spread of pests. Demand for agricultural land is one of the main reasons that forests continue to be erased… . … Although economic growth often contributes to illegal logging, the FAO concluded that development was, on the whole, beneficial to forests as wealthier countries were more likely to establish conservation policies. …” [Reuters/Factiva] 

AFP writes that “… Ten countries account for 80 percent of the world's primary forests, of which Indonesia, Mexico, Papua New Guinea and Brazil saw the highest losses in primary forest in the five years from 2000 to 2005. Europe and North America showed net increases in forest area over the same period, while Africa and Latin America and the Caribbean are the two regions with the highest losses. …” [Agence France Presse/Factiva]

AP notes that “…Africa, which accounts for about 16 percent of the global forests, lost over 9 percent of its trees between 1990 and 2005, the agency said. In Latin America and the Caribbean, home to nearly half of the world's forests, 0.5 percent was lost every year between 2000 and 2005 - up from an annual net rate of 0.46 percent in the 1990s.  

On the positive side, wooded area increased in Asia between 2000 and 2005. The increase was limited to East Asia, where investment in tree plantations in China offset high rates of clear-cutting in other regions, the report said. Forested area in most European countries is also increasing, while it is stable in Canada and the US. …” [The Associated Press/Factiva]  

ICF Fund Set To Tackle Obstacles To Africa Growth

“A fund to help Africa overcome obstacles to trade and investment is set to launch its first projects in East Africa after strong backing from corporate donors, officials said on Tuesday.

The Investment Climate Facility (ICF), a private-public partnership backed by the G8 group of the world's richest nations, said latest contributors to the fund included Microsoft and South Africa's Standard Bank. Niall FitzGerald, the ICF's co-chair and also chairman of Reuters, told a news conference in London the fund had received commitments of $120 million towards its $550 million target since its launch … . … The ICF wants to help African countries improve their regulatory environments, reform tax regimes, reform property rights laws and tighten contract enforcement codes. Fitzgerald said the fact that 25 percent of commitments came from the private sector demonstrated the confidence big business had in opportunities opening up in Africa. …” [Reuters/Factiva]   

The Star reports that “… Launched at the World Economic Forum in Cape Town last [June], the ICF is a private-public partnership to improve Africa’s investment climate. It aims to make Africa a ‘better place to do business’ by removing obstacles to domestic and foreign investment. …” [The Star (South Africa)/Factiva]

Dow Jones notes that “… The board of the ICF also announced the appointment of its first chief executive, Omari Issa, previously Executive Director and Chief Operating Officer of Celtel International in the Netherlands. …

Since its launch, the facility has increased committed donor funding by 50 percent to $120 million from $80 million in June last year. Other sponsors include the UK’s Department for International Development, Ireland, the Netherlands, the European Commission and the International Finance Corporation, Royal Dutch Shell and Shell Foundation, SABMiller, Anglo American, Microsoft, Sasol, Unilever and Celtel.” [Dow Jones/Factiva]

Indonesia To Share Bird Flu Samples After Contract

“Indonesia will resume sending bird flu virus samples to the World Health Organization (WHO) only after a global mechanism on virus sharing is in place, the health minister said on Wednesday. 

In a controversial move, Jakarta declared last month it had stopped sharing H5N1 samples with WHO, saying it would only share them with parties who agreed not to use them for commercial reasons. The two sides then struck a deal on February 16 to resume sharing samples, but under a new framework to give developing nations access to vaccines.

‘But we have to make that agreement become a legally binding one. For that purpose, we have to hold a ministerial meeting and then make it a consensus,’ Siti Fadillah Supari told reporters. She said WHO has agreed that virus samples sent to it would be used only for research and not commercial purposes. Supari said the sharing mechanism would be discussed at a meeting of health ministers from the Asia Pacific region and select countries on March 27-28 in Jakarta, but the new mechanism would still need to be discussed at a WHO advisory board meeting in May. …” [Reuters/Factiva] 

Dow Jones writes that “… Indonesia's decision to withhold its virus strain - a major departure from WHO's virus-sharing system - sparked international outcry. But WHO eventually acknowledged that the country had a point. However, Chan assured Supari in a February 28 letter that WHO would use Indonesia's strain of the virus ‘for public health risk assessment purposes only.’ Until a formal agreement is reached, WHO will obtain authorization from Indonesia before sending any ‘H5N1 strain as a vaccine seed virus to a vaccine producer for production of influenza H5N1 vaccine,’ said the letter, which was seen by The Associated Press.” [Dow Jones/Factiva]  

AFP notes that “… Indonesia is the country worst-hit by bird flu, with 64 deaths - the world's highest toll - and 85 confirmed cases, the latest announced on Tuesday. …

Indonesia has already signed a cooperation agreement with US company Baxter International to jointly develop a human bird flu vaccine, partly to try to ensure it benefits from any commercial treatment for the deadly virus. …” [Agence France Presse/Factiva]

Slovakia On Right Path Towards Euro Adoption In 2009 - IMF

“Slovakia will most probably meet the criteria for Euro adoption so as to be able to adopt the single European currency in January 2009 as planned, Biswajit Banerjee, the head of IMF mission for Slovakia, told journalists Tuesday.  

Slovakia is on the right path towards lowering inflation and already now more or less meets the demands for entering the Euro zone, he added. … Of the five Maastricht criteria for Euro adoption, Slovakia has thus far met the conditions of public debt and long-term interest rates. …” [CTK Business News (Czech Republic)/Factiva]

Dow Jones adds that “… Slovakia is the fastest-expanding economy in central Europe but the growth is expected to slow to 7.1 percent on the year from 8.3 percent annual growth last year. ‘We've concluded that the (Slovak) economy is doing well and stands on solid foundations,’ Banerjee said. ‘It also seems the outlook for the quality of growth is also good.’ …” [Dow Jones/Factiva] 

TASR reports that “… The IMF's mission to Slovakia ran from February 28-March 13, and will result in an assessment report on the Slovak economy. …   Banerjee identified certain risks. According to him, Slovakia needs to ensure that not only the government, but also other levels of public administration manage their finances in accordance with the budget. In the medium term, Slovakia's economy needs to become more flexible. … In addition, Banjeree stressed that proposed labor market reforms shouldn't be allowed to have an adverse effect on labor market flexibility and threaten the competitiveness of the Slovak economy.” [TASR - Tlacova Agentura Slovenskej Republiky (Slovakia)/Factiva]

Reuters adds that “… Banerjee said the government must work to make budget spending even tighter and more flexible because after Euro adoption the country will no longer control monetary policy. He also said the central bank's (NBS) monetary policy was appropriately set at the moment to meet the Maastricht inflation criterion, but declined to say whether there was room to cut interest rates soon to curb the crown currency's strength. The NBS held its key interest rate unchanged at 4.75 percent for the fifth month in a row in February, but debated a 25 basis point cut. The bank forecasts annual inflation at 1.5 percent using the EU measure in December, compared with January's 2.2 percent. It intervened last week to knock the crown off a record high of 33.800 per Euro.” [Reuters/Factiva]

AFX writes that “… Keeping inflation in check has been one of the government's main concerns regarding Euro adoption. Prime Minister Robert Fico has however criticized the EU's inclusion of inflation discipline as one of the adoption requirements, because high inflation often goes hand in hand with fast economic development in new EU member states. Fico's government has pledged to cut the public deficit to 3 percent of GDP this year, to 2.5 percent in 2008 and 2 percent in 2009. This would put the country well under the 3 percent limit set for Euro membership.” [AFX International Focus (France)/Factiva]

AFP notes that “… Slovakia took the first step towards Euro entry in November 2005 when it joined the Exchange Rate Mechanism II, which forces the Slovak koruna to move within a narrow trading band against the Euro. Bratislava's Euro entry date would make it the first country in Central Europe to adopt the single currency with Poland still to fix a target, the Czech Republic saying 2012 is the earliest opportunity and Hungary looking ahead to 2013.” [Agence France Presse/Factiva] 

Briefly Noted...

Briefly Noted… South Africa will Wednesday turn its back on previous HIV/AIDS policies by unveiling a five-year plan setting clear and ambitious targets for combating the epidemic, including halving the number of new infections by 2011. The R45 billion ($6.4 billion) plan draws a line under an era in which the South African government has been repeatedly accused at home and abroad of a slow and obstructive response to the crisis. [The Financial Times (UK)]

Uganda’s government is to start a new fund - called HIV Basket Fund - separate from the Global Fund, to finance activities related to HIV/AIDS.  Director-General of Uganda AIDS Commission, Kihumuro Apuuli, told MPs yesterday that donors had agreed to contribute annually to finance non government organizations involved in HIV/AIDS activities. The donors include UK, US, the EU, Sweden, Ireland, Norway and Denmark. [The New Vision (Uganda)/Factiva]

Democratic Republic of Congo's new government needs to contain public spending and curb inflation as the country's economic growth slows, the International Monetary Fund said on Tuesday. [Reuters/Factiva]

The United Nations Economic Commission for Africa Tuesday called on African countries to promote access to land by its citizenry so as to spur economic development on the continent. UNECA Southern Africa Director Jennifer Kargbo said in Lusaka that land is a vital tool for economic development for most Africa countries that are predominantly agricultural. [Xinhua (China)/Factiva]

The International Finance Corporation Tuesday entered into a $150 million debt and equity package with platinum mining group Lonmin.  The package is the IFC’s largest investment to date in Sub-Saharan Africa, surpassing its $110 million funding of the Mozal aluminium smelter near Maputo and the Chad-Cameroon pipeline, where the unit invested $100 million [The Star (South Africa)/Factiva]

The World Bank and the Asian Development Bank have pledged $1.65 billion in fresh loans to the Philippines this year to support priority government programs, Socio-Economic Planning Secretary Romulo Neri said Wednesday.  Following separate discussions with government oversight agencies, the Bank pledged one billion dollars for tax reform and development projects in the troubled southern island of Mindanao, he said in a statement.  [Agence France Presse/Factiva]

The International Monetary Fund said on Tuesday new EU member Romania faced modest short-term macroeconomic risks but sustainable strong growth would be difficult under current economic policies.  [Reuters/Factiva]

Argentina is "very close" to reaching an agreement to restructure its $6.3 billion debt with the Paris Club, Cabinet Chief Alberto Fernandez said on Tuesday. [Reuters/Factiva]

The International Monetary Fund on Tuesday extended Iraq's $714.7 million loan accord to September 28 at the government's request and said the country faced an important juncture in its economic recovery amid increased violence. [Reuters/Factiva]

 
Aid agencies, including the UN, the World Bank, Oxfam and Save the Children are warning of a potential humanitarian disaster in Sri Lanka. Tens of thousands of refugees are streaming out of eastern Sri Lanka as fighting between government forces and the Tamil Tigers worsens.  [The Independent (UK)/Factiva]

India says it rejects any deadline for completing the Doha Round of global trade liberalization talks and sees no breakthrough unless rich nations address the livelihood concerns of developing countries. WTO officials are pushing for a breakthrough in the talks before the expiry of US President George W. Bush's fast-track Trade Promotion Authority on July 1.  [Agence France Presse/Factiva]

The World Health Organization aims to harness smart technology to stop counterfeit medicines flooding developing world markets with sometimes fatal results.  The UN body sat down with more than 20 technology companies at a conference in Prague on Tuesday to investigate ways to detect bogus drugs, which account for more than a quarter of sales in some poor countries. [Reuters/Factiva]