By Esther Ngumbi
URBANA, Illinois, USA, Jan 27 2023 – Recently, the United States Department of Agriculture granted a conditional license for the first-ever honeybee vaccine. This is an exciting step that will protect bees from American foulbrood disease and ultimately help to stop the alarming decline in their numbers.

But the honeybee is just one of the many described insect species whose declining numbers has entomologists like me, environmentalists, and everyday citizens who love insects including Monarch butterflies worried. Across the U.S. and around the world there is a growing body of evidence and trend of insect decline. It’s so bad, that many are calling it the insect apocalypse.

Currently, there are over 1 million described species. But in study after study, review after review the story has remained the same: we are losing insects at unprecedented rates. The rapid decline of insects is caused by multiple factors including climate change and agriculture, increases in the usage of insecticides and  herbicides, deforestation, urbanization, and light pollution.

Currently, there are over 1 million described species. But in study after study, review after review the story has remained the same: we are losing insects at unprecedented rates

Everyone should be worried about this trend. Insects, including bees, ants, butterflies, dragonflies, beetles, and grasshoppers, make up over 80% of terrestrial species on Earth. Insects are a keystone species that provide invaluable ecosystem services  – from pollination, to biological control to serving as bio-indicators of healthy soils and streams.

Annually, in the United States, the economic value of the vital ecosystem services performed by insects is estimated to be $57 billion.  In addition, over 75% of agricultural crop species and 85% wild flowering plants are pollinated by insects Furthermore, insects like dung beetles perform important functions like breaking down manure which is a service important to the U.S. cattle industry.

A world without insects would be disastrous. Insects are food to other species including birds and their demise would have catastrophic effects on food webs.

Human food and nutrition security also benefits from insects. Essential micronutrients in the human diet (antioxidants, vitamins A and C, lycopene, folic acid, and tocopherol) are derived from insect-pollinated crops, primarily citrus and other fruits and vegetables including tomatoes.

In total, pollinator mediated crops account for about 40% of global nutrient supply for humans. Conversely, the loss of insects can worsen hidden hunger (micronutrient deficiencies), which afflicts over 2 billion individuals globally. It can further threaten global food security and public, human, and environmental health.  Ultimately losing insects contributes to decreasing biodiversity with a devastating impact on life on Earth.

Clearly, we need insects. The U.S. government, policy makers, scientists like me and everyday citizens should act with urgency to prevent further declines in their numbers

Protecting insects from national and global declines will require a combination of approaches including several actions that individuals can take.

First, since habitat destruction is among the largest drivers of insect declines, it is important that countries — beginning with the U.S. — create diverse landscapes. This includes forestland, meadows, and prairies to provide a variety of food and nesting resources for insects.

Everyday citizens can contribute to the attainment of this goal by planting native plants and maintaining pollinator gardens. In addition, individuals who keep lawns can consider converting them to diverse natural habitats.

Second, we must reduce insecticide and herbicides usage. Managing pests and weeds can be done by using integrated pest management approaches or integrated vegetation management approaches. These approaches promote the use of safer alternatives and encompass multiple non-chemical methods such as the use of resistant cultivars, trap cropping, and crop rotation.

Third, we can reduce light pollution. Evidence available suggests that light pollution is a driver of insect declines as it interferes with insect foraging, development, movement and their reproductive success. Simple actions like turning outdoor lights off at night can make a huge difference.

Fourth, do your part to help reduce carbon emissions. Climate change is among the biggest drivers of insect decline. Simple actions by everyday citizens like biking to work and using renewable energy sources can make a difference.

Fifth, you can choose to become an ambassador and advocate for insects and insect conservation. Begin by learning about the local, regional, national, and global policies that are in place to protect insects to prevent further insect decline.

Furthermore, encourage elected officials and all forms of governments – from local to state to federal — to pass laws and policies to protect insects while implementing measures such as setting aside protected land spaces including parks to serve as refuge spaces for insects.

Complementing the above actions is the need to support research and educational institutions, professional societies, and  nonprofit organizations that are actively addressing insect decline issues through research and taking actions to protect our natural world and conserve ecosystems that are home to insect species. These include the Entomological Society of America , The International Center for Insect Physiology and Ecology, and  The Xerces Society.

Finally, research and research funding are needed both now and in the future. This can help facilitate discovery of more insect species, monitor and document insect biodiversity across a diversity of landscapes and ecosystems and help us understand all facets of insect biology in natural and managed settings.

We need insects. Our ecosystems need insects. We must commit to doing something to protect them. Their existence is essential for a sustainable future.

Esther Ngumbi, PhD is Assistant Professor, Department of Entomology, African American Studies Department, University of Illinois at Urbana-Champaign

By Ed Holt
BRATISLAVA, Jan 27 2023 – While recent reports highlight the growing list of human rights abuses and war crimes committed by Russian troops in Ukraine, new research has laid bare the massive scale of arguably Russia’s most systematic and deadly campaign of rights violations in the country – the targeting and almost complete destruction of healthcare facilities.

According to a report released by the Ukrainian Healthcare Centre (UHC), 80% of healthcare infrastructure in one of Ukraine’s largest cities, Mariupol, was destroyed as Russian forces occupied the city.

It was left with practically no primary care, general hospitals, children’s hospitals, maternity hospitals, or psychiatric facilities, and large areas of the city were thought to have no medical care available at all.

On March 3, 2022, a Russian aircraft dropped unguided heavy bombs on the residential apartment buildings in the city center of Chernihiv; Chernihiv Regional Cardiac Center (Chernihiv oblast) was affected during the attack. At 12:16 pm, an aircraft dropped at least eight unguided bombs on Viacheslava Chornovola Street, according to verified dashcam footage. The bombing killed 47 civilians (38 men and nine women); another 18 people were injured. According to witnesses, the FAB-500 “dumb” bombs were used. No military targets in the area were confirmed by witnesses and international investigative organizations. Credit: UHC

Reports have been circulating for some time that a humanitarian catastrophe has already unfolded in the occupied city, and with the almost complete lack of healthcare provision, the threat of disease and sickness looms large among those still living there.

UHC says the destruction of Mariupol can only be compared with what happened to Grozny in Chechnya or Aleppo in Syria where Russia did its utmost to destroy each of these cities. And it claims that with its massive, indiscriminate shelling of civilian infrastructure, Russia “did not only violate certain regulations of international humanitarian law —[but] waged the war as if this law did not exist”.

“This destruction of healthcare facilities is a very, very serious war crime. Russia did the same in Syria, but in Ukraine, what it has also done is that it has not distinguished between military and civilian infrastructure – the goal has been to just destroy everything, and in Mariupol, we saw this philosophy at its most concentrated,” Pavlo Kovtoniuk, UHC co-founder and former Deputy Minister of Health of Ukraine, told IPS.

The Russian siege and eventual occupation of Mariupol was one of the earliest and clearest examples of the destruction and brutality which have come to define the war in Ukraine.

Pictures and drone footage of the city at the time showed the consequences of massive, indiscriminate bombardment by Russian forces, and in the months since Mariupol fell, Ukrainian officials have reported on what they claim are the appalling conditions facing those still living – its population has dropped from 425,000 pre-invasion to an estimated around 100,000 today as people have fled or been killed – in the city.

It is difficult to verify any such reports as access to the city and information about life there is strictly controlled by occupying authorities.

The Adonis Medical Center in Makariv was totally destroyed. The facility was situated close to the city center, surrounded by residential buildings, shops, and the City Council of Makariv. The hospital was not far from the bridge over the Zdvyzh River (around 200 m north). The bridge had an essential role in supply and reinforcements connecting Makariv to the E40 highway leading directly to the western part of Kyiv. Source: Kyiv Regional Health Department for UHC

But there were confirmed reports as early as last summer of mass protests in the city over a lack of water, electricity and heat, and sources with some access to locals in Mariupol have told IPS that the reports of severe hardship are largely accurate and that war crimes and human rights abuses are regularly being committed against the population.

Kovtoniuk said even without any direct access to Mariupol, it was certain that the situation there was “dire” for many and would almost certainly be the same in other occupied areas.

“It is difficult to know too much about exactly what is happening in occupied areas, but we can see [the situation there] from the experience in areas which were once occupied and then retaken by Ukraine,” he explained.

Indeed, reports from liberated cities and testimony from people who managed to escape from occupied areas paint a picture not just of widespread war crimes and atrocities such as mass executions, rapes, torture, abductions, forced disappearances, imprisonment, and unlawful confiscation of property, but also of humanitarian catastrophes. People are without money, and jobs, unable to access any services, and are completely reliant on humanitarian aid.

Kovtoniuk highlighted that in Mariupol alone, the destruction has been so great – since the start of the invasion, four out of five general hospitals have been destroyed, but also five out of six maternity facilities, and there is no mental health care available – that there is no way comprehensive medical care can be continuing in the city.

“There may be some facilities still going, but there is no system, which is just as bad if not worse. What we also don’t know is the situation with drugs and their supply. What about people with chronic conditions who need them? Are there drugs for them, and if so, where are they coming from? Are some people simply not taking them anymore? This is course can be fatal for some people with certain conditions,” he said.

“Russian strategies have been to completely destroy healthcare, healthcare staff have been deported, civilians are being denied access to healthcare as facilities are being used solely to treat Russian soldiers, healthcare facilities are looted for equipment,” Kovtoniuk added.

Ukrainian Minister of Health Viktor Liashko said earlier this month that about one thousand Ukrainian medical facilities had been damaged or destroyed, while as of January 23, the World Health Organisation (WHO) has documented 747 attacks on healthcare facilities in Ukraine since the start of the invasion. Its officials have said these attacks are a breach of international humanitarian law and the rules of war.

Other groups, like UHC, are documenting and collecting evidence of alleged car crimes during the invasion and have said the attacks on healthcare are part of a wider, even more, destructive Russian military strategy in Ukraine.

“Attacks on medical facilities are considered particularly condemnable under international law. They have serious negative consequences for the safety and health of Ukrainians. Since Russia is using war crimes as a method of warfare, we can talk [of these attacks as being] deliberate actions to create a humanitarian catastrophe in Ukraine and a desire to make it uninhabitable,” Svyatoslav Ruban of the Centre for Civil Liberties human rights organisation in Kyiv told IPS.

Regional Children’s Hospital On March 17, 2022, Russian forces shelled the area in the city center of Chernihiv, where the hospital is located. Cluster munitions were used, launched presumably from the Uragan MLRS. Fourteen civilians were killed and another 21 injured as a result of the attack. Credit: UHC

Other rights groups have also condemned the targeting of healthcare facilities and workers. In its latest global report, Human Rights Watch (HRW) castigated Russian forces for a “litany of violations of international humanitarian law” in Ukraine, and Rachel Denber, Deputy Director of the Europe and Central Asia Division at HRW, told IPS: “Attacks on critical infrastructure which are carried out with the seeming intent to instil terror in the population and deliberately deprive people of essential services could be potential war crimes and illegal. These attacks in Ukraine are unlawful.”

“It is obvious that the authors of these attacks are fully aware of the harm they will cause, and the aim is to make living cumulatively untenable. These attacks on infrastructure impact millions of people, having an effect on hospital operation, water supplies, heating etc,” she added.

She also warned that the apparent Russian strategy of deliberately targeting Ukrainian civilian infrastructure was chillingly reminiscent of what its forces had done in Idlib in Syria in 2019-2020 – hospitals, schools and markets were repeatedly targeted during an 11-month Syrian-Russian offensive which ultimately left 1,600 people dead and another 1.4 million displaced.

HRW’s own report on the Idlib offensive documented scores of unlawful attacks in violation of international humanitarian law, or the laws of war. Meanwhile, UN investigators claimed Russian forces had been responsible for multiple war crimes.

“It would not surprise me if it turned out that the Russians are doing the same in Ukraine as they did in Idlib,” said Denber.

While Russian attacks on civilian infrastructure, including medical facilities, continue, the situation will not improve, said Kovtoniuk.

He pointed to Russian forces’ ongoing deliberate destruction of power, heating, and water plants, and potential subsequent health risks – damage to water and sewage systems led to a serious risk of a cholera epidemic in Mariupol last summer – as well as the effects of such attacks on the ability of medical facilities to continue functioning.

He said people outside Ukraine, including leaders in countries already supporting Ukraine, must not allow the current situation to be accepted as a new normal, nor let the conflict drag on.

“We have learnt to survive and adapt, but it is important that this situation is not normalised – that is the Russian aim, to normalise it like what happened in Syria. People have to understand that the pattern of Russian strategy is to not make a distinction between waging war on civilians and on the military. It is also critical to end this war as soon as possible. Its protraction is bad for Ukraine and bad for Europe,” he said.

IPS UN Bureau Report

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By Alon Ben-Meir
NEW YORK, Jan 27 2023 – As Turkey approaches its centennial anniversary this October, President Erdogan is stopping short of nothing to win the election in June to fulfill his life-time dream of presiding over the celebration. The Turkish people should deny him this historic honor because of the reign of terror to which he has mercilessly subjected his countrymen.

Righting the Wrong

Had Turkey’s President Erdogan continued with his most impressive social, economic, judicial, and political reforms that he initiated and implemented during his first years in power, today’s Turkey would have been a great country, respected and prosperous while enjoying tremendous regional and global influence under his leadership.

Instead, Erdogan reversed his remarkable achievements on all domestic and international fronts in pursuit of building an authoritarian regime that could satisfy his unquenchable thirst for ever more power. Erdogan will stop short of nothing to win the upcoming elections in June.

He certainly hopes to preside on October 29 over the hundredth anniversary of the establishment of the Turkish Republic by Mustafa Kemal Atatürk and to be recognized as the new Atatürk (father) of modern Turkey. The Turkish people must deny him that honor because of his continuing horrific human rights violations.

To put in perspective as to why Erdogan does not deserve to preside over the anniversary and should be handedly rejected in the June elections, it is first necessary to provide a brief account of his relentless reign of terror and his unremitting campaign to harass and delegitimize the opposition parties to achieve his sinister objective.

Following the failed coup of July 2016, Erdogan arrested tens of thousands of innocent people, including hundreds of security officials, academics, and military personnel suspected of belonging to the Hizmet (Gülen) Movement and charged them with participating in the coup. He uses Article 301 of the Anti-Terror Act to crack down on dissent and even criminalize criticism of “Turkishness.”

He arrested hundreds of journalists accusing them of spreading anti-government propaganda, shut down scores of TV and radio stations, and imposed restrictions on the use of social media. Nearly 200 journalists have been imprisoned since 2016; currently 40 remain incarcerated in subhuman prisons, which blatantly defies the convention of freedom of press, especially in a NATO member state.

Thousands of university graduates are leaving the country in the search for job opportunities and to free themselves from Erdogan’s shackles. Leaving their country behind is causing an alarming brain drain, which is affecting just about every industry.

The Council of Europe and the University of Lausanne reports that Turkey has the largest population of prisoners convicted on charges related to terrorism. As Turkish journalist Uzay Bulut notes, “The report, updated in April 2021, shows that at the time there were a total of 30,524 inmates in COE member states who were sentenced for terrorism; of those, 29,827 were in Turkish prisons” [emphasis added].

As Leo Tolstoy observed in War and Peace, “One need only to admit that public tranquility is in danger and any action finds a justification… All the horrors of the reign of terror were based only on solicitude for public tranquility.” To that end, Erdogan proclaims to be a pious man, but he cynically uses Islam as nothing but an evil political tool to project a divine power to assert his dictatorial whims unchallenged.

The World Organization Against Torture (OMCT) reports that Erdogan conveniently uses Anti-Terrorism Law No. 3713, which was enacted by his AK Party-led, rubber stamp parliament to stifle freedoms and silence the voices of those who defend human rights. The law allows him to label peaceful human rights defenders as ‘terrorist offenders’.

OMCT states that “Official data show that in 2020, 6551 people were prosecuted under the anti-terrorism law, while a staggering 208,833 were investigated for ‘membership in an armed organization,’” typically those involved with the Gülen movement.

Erdogan continues his crackdown on his own Kurdish community which represents nearly 20 percent of the population, depriving them of basic human rights. His systematic persecution of the Kurds seems to have no bounds, as he accuses thousands of being supporters of the PKK, which he considers as a terrorist organization and which successive Turkish governments have been fighting for more than 50 years at staggering human and material cost.

He consistently demands that various Balkan and EU states extradite Turkish nationals whom he accuses of being terrorists to stand trial in his corrupted courts, denying them due process and subjecting them to ferocious torture in order to extract confessions for offences they never committed.

He is preventing Finland and Sweden from joining NATO unless Sweden extradites about 130 political refugees, mostly Turkish Kurds, to stand trial in Turkey. Sweden has rejected his demand knowing that once they reach Turkish soil, it will be tantamount to the kiss of death. To be sure, the rule of law in Erdogan’s Turkey has been effectively dismantled.

To improve his chances of being re-elected, Erdogan wants to ensure that the Kurdish political parties are denied representation in the Parliament. He has incarcerated many of the 56 members of the pro-Kurdish Peoples’ Democratic Party (HDP) and removed its remaining members from the legislative process; he is determined to close the party altogether.

In addition, he arrested many members of the Democratic Regions Party (DBP), accusing them of unfounded terrorism-related offenses and illegally replacing them through government-appointed trustees.

Erdogan is asking the Biden administration to issue a statement in support of his policies to help him in his bid for reelection when in fact he is at odds with President Biden on a host of critical issues, including his egregious human rights violations, his refusal to allow Sweden and Finland to join NATO, his purchase of the Russian-made S-400 air defense system, his money laundering, and his ceaseless corruption.

And in 2019, he tried to block NATO’s plan for the defense of Poland and the Baltic states unless NATO identified the Kurdish-led Syrian Democratic Forces as terrorists.

One would think that if he is so desperate to be re-elected come June, he would make significant concessions both domestically and in his relations with the US and the EU. Why not offer amnesty to all political prisoners, free the journalists, stop harassing and jailing leaders of opposition parties, and fully adhere to human rights and the rule of law?

Why not drop his opposition to Sweden’s admission to NATO? Why not rescind his purchase of a second batch of S-400s and decommission those currently in use, which are totally incompatible with NATO’s air defense systems? Finally, why not restore the democratic principles which every member state of NATO is required to uphold?

But then, Erdogan’s obsession with absolute power has blinded him from seeing and feeling the plight of his own people, which only demonstrates his ignorance and shortsightedness. As Jorge Luis Borges aptly observed, “Dictatorships foster oppression, dictatorships foster servitude, dictatorships foster cruelty; more abominable is the fact that they foster idiocy.”

A number of years ago, Erdogan’s former prime minister Davutoglu told me that by the year 2023, Turkey will have restored the glory, the global influence, and prestige that the Ottoman Empire enjoyed in its heyday. Needless to say, Davutoglu’s prophecy has not come to pass.

To the contrary, today, Turkey’s economy, social and political order, and democracy are in complete disarray; Turkey is far from having “zero problems with neighbors,” and remains estranged from the US and the EU.

If Erdogan manages to be re-elected through cheating and by disenfranchising the opposition parties, he will celebrate the centennial anniversary while presiding over a country in retreat, with a disillusioned and despairing citizenry and diminishing regional and international stature. He will not be the new Atatürk even though he so frantically wants to portray himself as a great reformer leading a constructive and great power on the world stage.

Instead, Erdogan will be remembered with scorn and contempt for having squandered Turkey’s huge potential while degrading the anniversary that could have been Turkey’s greatest celebration in one hundred years.

Dr. Alon Ben-Meir, a retired professor of international relations at the Center for Global Affairs at New York University (NYU), taught courses on international negotiation and Middle Eastern studies for over 20 years.

IPS UN Bureau

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By Anis Chowdhury
SYDNEY, Jan 27 2023 – As the year 2022 drew to an end, the United Nations Conference on Trade and Development (UNCTAD) warned, “Developing countries face ‘impossible trade-off’ on debt”, that spiralling debt in low and middle-income countries (LMICs) has compromised their chances of sustainable development.

Anis Chowdhury

In early December, an opinion piece in The New York Times headlined, “Defaults Loom as Poor Countries Face an Economic Storm”. And the World Bank’s International Debt Report highlighted rising debt-related risks for all developing economies—low- as well as middle-income economies.

Debt on the rise
Debt build-up accelerated in the wake of the 2008-2009 global financial crisis (GFC). The World Bank’s, Global Waves of Debt reveals that total (public & private; domestic & external) debt in emerging market and developing economies (EMDEs) reached an all-time high of around 170% of GDP ($55 trillion) – more than double the 2010 figure – by 2018, before the onset of the COVID-19 pandemic.

Total debt in low-income countries (LICs), after a steep fall from the peak of around 120% of GDP in the mid-1990s to around 48% ($137 billion) in 2010, increased to 67% of GDP ($270 billion) in 2018.

Pandemic debt
The COVID-19 pandemic greatly lengthened the list of EMDEs in debt distress as rich nations and institutions dominated by them, e.g., the World Bank, failed to provide any meaningful debt reliefs or increase financial support to adequately respond to the health and economic crises.

The World Bank’s chief economist advised, “First fight the war [pandemic], then figure out how to pay for it”. The IMF’s managing director counselled, “Please spend, spend as much as you can. But keep the receipts”.

The World Bank’s International Debt Statistics 2022 reveals that the external debt stock of LMICs in 2021 rose to $9.3 trillion (an increase of 7.8% compared to 2020) – more than double a decade ago in 2010. For many countries, the increase was by double digit percentages.

Riskier debt
Over the past decade, the composition of debt has changed significantly, with the share of external debt owed to private creditors increasing sharply. At the end of 2021, LMICs owed 61% of their public and publicly guaranteed external debt to private creditors—an increase of 15 percentage points from 2010.

The private creditors charge higher interest rates, and offer little or no scope for restructuring or refinancing at favourable terms, as they maximise profit. The private creditors also usually offer credits for shorter duration, while development financing needs are for longer-terms.

Failed aid promises
Development needs of developing countries have increased many-folds, especially for meeting internationally agreed development goals, such as the Millennium Development Goals (MDGs) and now Sustainable Development Goals (SDGs). The LMICs’ estimated aggregate investment needs are $1.5–$2.7 trillion per year—equivalent to 4.5–8.2% of annual GDP— between 2015 and 2030 to just meet infrastructure-related SDGs. But the rich nations spectacularly failed to honour their promises of finance made at the 2015 UN conference on financing for development (FfD) in Addis Ababa.

In fact, they failed all their past aid promises, e.g., to provide 0.7% of their gross national income (GNI) as aid, a promise made over half a century ago. While aid hardly reached half the promised percentage of GNI, it in fact declined from the peak of around 0.55% of GNI in the early 1960s to around 0.34% in recent years. Oxfam estimated 50 years of unkept promises meant rich nations owed $5.7 trillion to poor countries by 2020!

At their 2005 Gleneagles Summit, G7 leaders pledged to double their aid by 2010, earmarking $50 billion yearly for Africa. But actual aid delivery has been woefully short. G7 and other rich OECD countries also broke their 2009 pledge to give $100 billion annually in climate finance until 2020.

Promoting private finance
Meanwhile institutions dominated by rich nations – the World Bank and OECD, in particular – promoted private financing of development. The World Bank, the IMF and multilateral regional development banks, e.g. Asian Development Bank jointly released From billions to trillions, just before the 2015 FfD conference.

The document optimistically but misleadingly advised governments to “de-risk” development projects for enticing trillions of dollars of private capital in public private partnerships (PPPs). While de-risking effectively meant governments bearing financial risks, or socialise private investors’ loss, PPPs are found to have dubious impacts on SDGs, especially poverty reduction and enhancing equity.

Meanwhile the OECD donors advocated “blended finance” (BF) to use aid money to leverage, again trillions of dollars of private capital. But as The Economist noted, BF is struggling to grow, stuck since 2014 “at about $20 billion a year…far off the goal of $100 billion set by the UN in 2015”, despite suspected double counting. Like PPPs, BF has effectively transferred risk from the private to the public sector. On average, the public sector has borne 57% of the costs of BF investments, including 73% in LICs.

Collateral damage
In the wake of the GFC the rich countries followed so-called unconventional monetary policies that kept interest rates exceptionally low – in some cases at zero – for a decade. This saw capital flowing from rich countries to EMDEs in search for higher returns, as exceptionally low interest rates enticed EMDE governments and businesses.

The opportunity to borrow at low rates also made the EMDE governments lazy in their domestic revenue mobilisation efforts. Such policy complacency was rewarded by the donor community, especially the World Bank, through its now discredited Doing Business Report, encouraging a harmful race to the bottom tax competition among countries to cut corporate and other direct taxations. The World Bank and IMF also advised to remove or lower easier to collect indirect taxes, e.g., excise duties in exchange for regressive and difficult to implement goods & services or value-added tax in poorer countries.

Bleeding revenues
Meanwhile transnational corporations (TNCs) continue to avoid and evade paying taxes using creating accounting, aided by tax havens, mostly situated in rich nations’ territories. Developing countries lost approximately $7.8 trillion in illicit financial flows from 2004 to 2013, mostly through TNCs’ transfer mispricing, or the fraudulent mis-invoicing of trade in cross-border tax-related transactions.

African countries received $161.6 billion in 2015, primarily through loans, personal remittances and aid. But, $203 billion was extracted, mainly through TNCs repatriating profits and illegally moving money out of the continent.

International tax rules are designed by the rich nations. They continue to oppose developing countries’ demand for an inclusive international tax regime under the auspices of the UN.

Perfect storm
Global supply-demand mis-matches due to the pandemic, the Ukraine war and sanctions are a perfect recipe for a perfect storm. The advanced countries’ inflation fight is causing adverse spill-over on developing countries.

Higher interest rates have slowed the world economy, and triggered capital outflows from developing countries, depreciating their currencies, besides lowering export earnings. Together, these are causing devastating debt crises in many developing countries, similar to what happened in the 1980s.

In October 2022, a United Nations Development Programme (UNDP) report estimated that 54 countries, accounting for more than half of the world’s poorest people, needed immediate debt relief to avoid even more extreme poverty and give them a chance of dealing with climate change.

Rich nations fail again
As pandemic debt distress became obvious, the G20 countries devised the so-called Debt Service Suspension Initiative (DSSI) for 75 poorest countries, supposedly to provide some modest relief between May and December 2020. DSSI does not cancel debt, but only delays re-payments, to be paid fully later with the interest cost accumulating – thus effectively “kicks the can down the road”. As the private lenders refused to join the G20’s initiative, unsurprisingly only 3 countries expressed interest in DSSI. Moreover, the G20 initiative does not address debt problems facing MICs, many of which also face debt servicing, including repayment issues.

Although the IMF acted innovatively at the start of the pandemic debt distress with debt service cancellation for 25 eligible LICs (estimated at $213.5 million), the World Bank’s Chief refused to supplement, let alone complement the IMF’s debt service cancellation for the most vulnerable LICs. Nonetheless, the Bank’s President hypocritically advocates debt relief as “critical”. He wants to have the cake and eat it too; apparently wanting to increase lending, but without sacrificing the institution’s AAA credit rating.

China debt trap diplomacy?
Meanwhile the rich nations accuse China of “debt trap diplomacy” that China is deliberately pushing loans to poorer countries for geopolitical and economic advantages. Less than 20% of LICs external debt is owed to China as against more than 50% to the commercial lenders.

Most Chinese loans are concessional, and China has provided more debt relief than any other country, bilaterally negotiating around $10.8 billion of relief since the onset of the pandemic.

Unsurprisingly, independent studies debunked the Western accusation. And China has emerged as a major source of development finance for poorer countries. A recent IMF study concluded, “Beijing’s foreign assistance has had a positive impact on economic and social outcomes in recipient countries”.

Damaging trade-off
Rising debt servicing in the face of higher import costs, falling export revenues and declining remittances, are forcing developing countries to a damaging trade-off. They are forced to service external debt owed to rich nations and international financiers at the cost of development.

For many African nations, the increased cost of debt repayments is the equivalent of public health spending in the continent, according to the UNCTAD. But, “No country should be forced to choose between paying back debts or providing health care”.

IPS UN Bureau

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