Sunday, March 9, 2008

Decline of the American dollar

Fiscal policies over the years take toll on the greenback

The days when the greenback ruled with absolute supremacy and simultaneously commanded the unparalleled confidence of chiefs of international and domestic financial institutions along with the man in the street in the remotest parts of the planet are over. The American dollar is no more “The Currency” that can be relied on for value, as was evident by a recent CNN news clip showing an antique store in New York preferring Euro over the local currency.

Since World War II, when the American dollar started replacing gold as a means of transaction on the international level, the dollar has taken some hard knocks in recent years.

With the launch of the Euro nearly a decade ago, much was written in the pro-dollar media and EMU, as the Eurozone is called, and it was compared with the “EMU,” a bird that cannot fly. But then, compared to the launch and subsequent drop as the nascent currency took baby steps, the Euro has come of age and has crossed the threshold One Euro=USD 1.5 plus. And the dollar has also lost against the other leading currencies, like the Japanese Yen and British Pound.

With the way things are going, one must understand why and when the American dollar got to that place on the pedestal. Only then does it become clear what is happening now. As mentioned earlier, a walk down memory lane shows that till World War II the exchange rates of major currencies were reflected in terms of the price of gold in the respective countries, but with the manipulation of costs of other goods then, gold was a growing discomfort among trading partners across the globe, and the dollar came as a suitable solution.

World War II ended with the emergence of the United States as the dominant military and economic powerhouse, and as countries gathered to this epiccentre for military and financial support, the dollar emerged as the financial powerpoint of the financial world.

With the issuing of US government securities there was an added charm of earning interest over dollar deposits.But to the discerning eye, there was a Catch-22 situation that stayed afloat all these decades - and still is. The use and abuse of the technical term “Balance of Payments” was so rampant by the US that one shudders to look at the figures over the years. The United States consumed more than it produced, financing the payments with printed paper and all had been well till 1971 arrived.

The US devalued the “International Currency” unilaterally. Internationally-held dollar reserves overnight lost value and that was quite a hard knock for some of the poor countries of the world.Five years later, in 1976, came the Jamaican Agreement that gave the financial world a floating exchange rate system where the markets started playing a lead role.

But again, it was not a free float and, instead, government intervention in the form of buying and selling determines the final results at the end of the day.With the arrival of the Euro in the world F/X (foreign exchange) market scene, things started changing.

And let us not forget that the Euro has replaced 15 European currencies, and some of them, like the German mark, French franc and Italian lira were backed by strong economic and industrial giants of the world.

With the Euro surging not only in value but also as a dependable currency, the world commodity markets, especially relating to oil, will start contemplating a switch to the Euro to protect themselves against instability or the falling dollar.

The US administration will definitely want to sabotage such a move by hook or crook as its financial survival depends on the role of dollar as a legitimate international currency. Now, a look at what is really going on behind the scene.

US statistic reports have repeatedly shown the American C/A (current account) deficit has expanded continuously with billions in fiscal deficit.With China shifting some of its foreign reserves into Euro, there is already a warning ringing for the United States as more countries shift to Euro; more falls in the dollar will result.

Add to those factors the role played by the locomotive economies of Asia including China and India growing by leaps and bounds in the current years. But the financial mechanism needed to keep the dollar at a price that will sustain the US C/A deficit without putting pressure on its import/export ratio, which in turn enhances or erodes the lifestyle of its citizens, will not garner support internationally over a long-term period and US will have to pay the price at some point.

Saturday, February 23, 2008

European Parliament faces fraud enquiry

MEP Davies confirms "OLAF has the report"


European Anti-Fraud Office (OLAF) moved in swiftly on February 22, 2008 to secure a copy of "The Document," from the European parliament within 24 hours of requesting a copy, about which one member of the European Parliament (MEP) quipped, "This report is dynamite." The report prepared by European parliament's internal auditors focuses on how MEPs spent or allegedly misspent the taxpayers’ money.

So perilous is the extent of the fraud, it is claimed by a parliamentary source that the report can only be seen by members of the Budget Control Committee in a secret room, under surveillance and without taking notes or making copies.

Realising the gravity and extent of the possible misuse of public funds, Chris Davies, the young British MEP took the first step to bring it to light calling upon Franz Bruener, OLAF's Director General in a letter (see below), "As a member of the European Parliament's Budget Control Committee I was this morning permitted to read a copy of Internal Audit Report 06/02 on the parliamentary assistance allowance paid to MEPs for the employment of their staff. Currently I believe this amounts annually to more than 140 million Euro and represents some 10 percent of the Parliament's total expenditure."

MEP Davies told this journalist, "I believe the auditor's report was intended to be published and I think it a disgrace that it is being kept secret by the parliamentary authorities. The Parliament preaches the virtues of transparency and openness and it should start to practice them. The next step is that a copy should be given to every MEP and made public. Let the taxpayers judge what it says for themselves."

Asked to comment on reactions from fellow MEPs, Davies noted, "Support yes from some MEPs (Dutch for example, who have to work within a strong code of conduct agreed by the parties in that country)." He admitted to "some pressure from other British MEPs to shut up. Never on the basis that they are doing something wrong, but always from those who are passionate pro-Europeans, know how difficult it is to argue the pro-EU case in Britain, and believe that these revelations undermine the reputation of the Parliament. They also argue that attempts are being made to achieve reform."

MEP Davies said, "Too often it is a case of blame the messenger instead of blaming the cheats."

According to a parliamentary source, the report was kept in a secret room in an undisclosed location protected by biometric locks and security guards. Those few who enter can only do so after signing confidentiality agreements, and are prohibited from discussing what they discover inside.

The reliable source said on a condition of anonymity, "The secret room houses a confidential dossier on the ‘extensive, widespread and criminal abuse’ by Euro-MPs of staff allowances. So explosive are the figures that officials are terrified by the damage it could do should its contents be revealed to the public."

According to sources who have seen the report, the secret enquiry documents abuses of staff allowances by a sample group of 167 Euro MPs. Although the report does not name and shame any individual MEP, the detailed account of how in an unaccountable way the tax-payers' hard earned money is squandered with no taps or checks is appalling.
B
According to another reliable source, "It is widely rumoured that Italian MEPs have in many cases set up shadow companies/organisations to manage their staff budget. These organisations comply with the Parliament's rules but actually allow the money to be channelled towards individuals or political parties."

Asked to comment on it, MEP Davies said, "But what can you do? I am told that there is no mention whatsoever of this scandal in the Italian or Greek press, so how do you generate any pressure for change?"

Explaining the way the alleged fraud may have worked, MEP Davies added, "The Parliament provides a second pension scheme that the majority of MEPs have joined voluntarily. Parliament pays two thirds (GBP 18,000 pa or 24,000 Euro approximately) and the MEP is supposed to pay one third (GBP 9000 pa or 12,000 Euro). But the MEPs' contribution is deducted from their office costs allowance ‘for administrative convenience.’"

The catch lies in the fact that MEPs are supposed to pay it back personally but then the question arises how many do and how many just are too lazy to make that transfer. Commenting on this MEP Davies said, "I regard this equivalent to embezzlement and it is another disgrace that the Parliament has refused to change the arrangements that permit it."

Moreover, the fact to be noted is that the office allowance is worth more than GBP 30,000 pa (40,000 Euro) and "NO RECEIPTS WHATSOEVER" have to be provided to justify expenditure according to MEP Davies.

In the light of all this there was a panic among the lawmakers at what damage the report can inflict in the run-up to the European parliamentary elections in 2009.

"I love the Parliament. I am proud of the work that I and my colleagues do as MEPs. But I am angry that we allow procedures to exist that bring us all into contempt," MEP Davies concluded.

The report, its findings and its recommendations, are due to be discussed at the next Tuesday (February 26) meeting of the Budget Control Committee under the item 2006 discharge: EC general budget.

------------------------

COPY OF LETTER TO THE EU ANTI-FRAUD OFFICE


Mr Franz Bruener
Director-General
OLAF

Dear Mr Bruener

As a member of the European Parliament's Budget Control Committee I was this morning permitted to read a copy of Internal Audit Report 06/02 on the parliamentary assistance allowance paid to MEPs for the employment of their staff. Currently I believe this amounts annually to more than €140 million and represents some 10% of the Parliament's total expenditure.

Disgracefully in my view the document has been declared confidential under the Parliament's rules, pursuant to Article 4 of Regulation (EC) No 1049/2001, that gives such authority to the President of Parliament, the chairmen of the parliamentary committees concerned and the Secretary-General and/or any person they have duly authorised by written delegation. I was therefore allowed to read the document only under supervision and was not allowed to make notes. Members authorised to read it are required to sign a confidentiality statement that prohibits the dissemination of the information.

The report, its findings and its recommendations, are due to be discussed at the meeting of the Budget Control Committee on 26 February under the item 2006 discharge: EC general budget.

OLAF was established to uphold the principle that the European Institutions have a duty to guarantee, with regard to the taxpayer, the best use of their money and in particular to fight as effectively as possible against fraud and any other illegal activity harmful to the financial interests of the Community.

In my view the findings of the Parliament's internal auditors fall within OLAF's terms of reference.

If a copy of report 06/02 has not yet been provided to you I believe you should insist that the parliamentary authorities provide you with one, and thereafter that the auditors should give you such further information as may be needed to commence investigations against individuals.

There is a great reluctance amongst some MEPs to ensure that the financial procedures of the European Parliament in relation to its members are put on the same sound basis that we would expect of other public institutions. Maybe when some MEPs are named, exposed for defrauding the Parliament and the public, and are sent to prison, a more acceptable approach will be adopted.

I would be pleased to discuss this matter with yourself or Ms Heinkelmann.
Yours faithfully

Chris Davies MEP
European Parliament

Sunday, February 17, 2008

Afghanistan likens itself to US Mexican border woes

Need personnel, modern equipment, neighbours’ help


More than seven years since the ouster of the Taliban, Afghanistan is suffering its worst spell of violence in recent years with hundreds of foreign troops and thousands of civilians killed in what is termed a resurgence of the Taliban.

As the population reels under severe weather conditions, economic hardships and the ever-present threat of terrorist attacks, there is an urgent need to build and supplement Afghan defence forces.

Afghan Defence Ministry spokesman General Mohammad Zahir Azimi on February14 reiterated the need for a stronger and well-equipped Afghan defence system arguing that it’s even cheaper to sustain than the foreign troops in the country.

Addressing Brussels-based journalists through a satellite link, General Azimi said, “Afghan National Army is a confident defensive institution with more than 60,000 personnel who have been able to get the confidence of international community and people of Afghanistan.

Afghanistan Army has led some important operations such as Maiwand, operation Khybar and recently the operation in Musa Qala.” Advocating that increasing the size of the Afghan National Army is much cheaper than paying for thousands of NATO and US troops, currently deployed in Afghanistan General said, “From an economical point of view, expenses of Afghanistan Army is much lower. It means expenses of one foreign soldier could be the equivalent for 60 to 100 Afghan National Army soldiers.”

Outlining the three main challenges facing the army today, the General said, “First, the number of Afghan National Army which is agreed for 86,000 troops should be increased in case of necessity.

Second: Lack of heavy weapons like tanks which can increase the morale of troops.

Third: Lack of airpower which can perform logistic, transport, air strikes and reconnaissance activity.”

On the question of recruitment of youth in the national army vis-a-vis the terrorist organisations like the Taliban, General Azimi said, “I can tell you that Afghan youth are interested to be in Afghanistan Army and economical aspect of this army is not important for our youth.”

“The thing which is important for them is that they are interested to defend their country. They are interested to defend democracy and they are interested to defend their national values. For instance, in March 2007 it was decided to increase the number of National Army by two times by the end of 2007. During the eight months we have been able to complete the number of our Afghan National Army. It means that we have been able to attract Afghan youth to Afghan National Army.”

On the subject of the present winter lull in the terrorist activities and projected situation in upcoming Spring, General said, “We don’t expect that upcoming spring or the spring of 2008 to be harder than the spring of 2007 because when we started spring of 2007, we had around 30,000 troops ... we didn’t have advanced equipment in the beginning of 2007.”

“But now by the beginning of 2008 or by the beginning of the spring of 2008, we will have around 70,000 troops, we will have advanced equipment; we will have M16 weapons, we will have M4... we don’t expect that this spring will be harder and we are not concerned at all about upcoming spring.”

Commenting on the urgent needs to monitor the Afghan border, General said, “I think Afghanistan’s border needs four important points. First of all, we need a strong border force for our border. For example, we have more than 5,600-kilometre border with different countries and the number which is determined for Afghan National Border Police is just 12,000. So 6,000 or 7,000 of them could be busy in headquarter services. We will just have 5,000 or 6,000 troops. So they won’t be able to protect all the borders because there is more than 5,600 kilometres.”

“The second thing is about technology. We should have advanced technology in order to monitor our border areas. So we need night-glasses. We need the equipment that could be used by our border police in order to monitor it.”

“The third point is the collaboration of people. Potentially, people are ready to help government in order to monitor the border.”

“The fourth point or element is the honest collaboration between two countries. So the two countries, those of the border between each other, they should honestly collaborate or co-operate with each other in order to make sure the security or the control of the border.”

Asked to comment on the question of whether Afghanistan had any plans to close the border between Afghanistan and Pakistan, General Azimi said, “From a geographical point of view, there are a lot of terrain which are very difficult to pass or it means Afghanistan a mountainous country.”

Pointing to inability of even the US to close borders, the Afghan General said, “The complete closing of the border is impossible because when we see to the United States, United States is a powerful country, even they cannot shut or they cannot close their border with Mexico.”

The General expressed optimism, saying, “Yesterday Afghanistan was a centre of terrorism that was threatening the world. Today it is the centre of struggle against terrorism with having elected government, parliament, constitution, press freedom and more than six million of our children are going to school and women are struggling beside the men.”

Saturday, February 9, 2008

Kosovo’s clock is ticking

Rumblings in Europe and beyond, not violence, the threat

The European Union, the bastion of peace and prosperity rose from the ashes of two sanguinary World Wars and today it still portrays that tranquil image, notwithstanding the wars and bloodshed of the Balkans in the 1990s.

The impending Kosovo independence, a direct fallout from those Balkan wars, may not trigger an all-out war in the region, but it will definitely result in some major indelible changes not only in the region but also world afar.

Kosovo’s population is 90 percent Albanian, and their goal of independence was reiterated February 8 by Kosovo Prime Minister Hashim Thaci. “We have confirmation by around 100 countries that they are ready to recognise Kosovo’s independence immediately after we declare it. We will have a powerful and massive recognition,” he said.

Addressing journalists after the regular weekly meeting with Joachim Ruecker, chief of the UN mission in Kosovo, Thaci refused to divulge either the names of his list of countries or specify when he plans to declare independence.

In keeping with his declared intentions to keep his supporters mostly Western powers in confidence about intended declaration of independence, there is a general murmur in diplomatic circles that February 17 may be the D-day.

On the other hand, Serbia continues with its hawkish statements as the EU-backed reelected Serbian President Boris Tadic warned of an escalation in conflicts if Kosovo declares independence.

Speaking at the opening of an annual security conference in Munich, Tadic who enjoys the support of powers that are supporting Kosovo independence, said, “Should Serbia be partitioned against its will ... it could in turn result in the escalation of many existing conflicts, the reactivation of a number of frozen conflicts, and the instigation of who knows how many new conflicts.”

But his comments try to cater to the sentiments of Serbian people as well as play along the European officials, especially the EU’s enlargement commissioner, Olli Rehn who has been instrumental in offering all the carrots to Serbia thus openly helping Tadic to win again.

On January 28, before the final round of Serbian presidential elections, EU foreign ministers offered Serbia a deal on free trade and travel, presenting it as a “signal to the Serbian people,” while denying that it was intended to influence the vote.

Now, with the win of the pro-EU Tadic in Serbia, the EU is in a win-win position. First it can go ahead and give recognition to an independent Kosovo and then as Serbia accepts the carrot of EU membership, Belgrade has to regularise its relationship with an independent Kosovo.

Commenting on the victory of Tadic, Jose Manuel Barroso, president of the European Commission said the result was “a victory for democracy in Serbia and for the European values we share.” He added: “Your victory comes at a critical moment for Serbia and for the western Balkans. We wish to accelerate Serbia’s progress towards the European Union.”

The European Union on one hand has been supporting pro-Western Tadic on Serbian political landscape but it has given a go-ahead on the other hand to an EU police and justice mission to Kosovo. Without specifying a launch date, the mission was approved in writing to allow the EU’s 1,800 police and legal officials to take over from the United Nations in Kosovo, under UN Security Council resolution 1244, which refers to an international security presence.

The 16,000-strong NATO force, however will remain in Kosovo, which is still a province of Serbia. Kosovo has been run by the UN since a US-led NATO bombing campaign drove out Serb forces accused of a brutal crackdown on ethnic Albanian separatists.

The imminent independence of Kosovo will fan the forces of separatism in rest of Europe and other parts of the world as it comes under the aegis of the UN mandate. In an interview with New Europe recently in Brussels, Joseba Azkarraga Rodero, Minister, Department of Justice, Employment and Social Security, Basque Country in Spain, reiterated its fallout on other simmering conflicts.

Stressing “Fighting for self determination is the right of the people,” Rodero said, “We support the rights of self-determination of Scottish and Kosovo people through peaceful and democratic means to reach such ends.”

On the other cases of such struggles, he added, “People have been fighting for their own states. Large states talk of borders and that is not correct. We can see cases of Kosovo and Scotland – similar cases where people are fighting for self determination.”

Moreover, at the Russia-NATO meeting last December, held in Brussels, Russian Foreign Minister Sergei Lavrov told journalists, “We are for a solution which will be acceptable to both Belgrade and Pristina and only for government bodies which will be fully empowered to ensure security.”

Asked to comment on Moscow’s response to a unilateral declaration of independence by Kosovo, Lavrov said, “Reaction will be based on international law and I very much hope that other members of international community will proceed on that basis too.”

Lavrov called the projected solution “as a precedent,” adding, “How the Kosovo crisis is going to evolve is being looked at by a lot of other countries in the world and not only countries in the Balkans. So it has to do with international law, Helsinki act and any body who goes against them, will certainly go on a slippery path and not help stability of Europe.”

Arguing that such a solution for Kosovo will set a dangerous precedent for separatist inspirations elsewhere like Basque, Scottish and other regions, Russia has supported Serbia’s stance at the UN Security Council to keep Kosovo within Serbia but with greater autonomy.

Last but not least, the European Union along with the US has been again supporting Kosovo independence without reacting to an earlier report in this newspaper about the rise of Wahhabism and the tightening of the grip of fundamental Islam over Kosovo’s society where the majority population is Muslim.

The rampant use of foreign money from Saudi Arabia and other countries to spread “intolerant” and “puritan” form of Wahhabism is going to allow anti-West terrorism to rear its ugly head right in the back yard of the European Union. But until there is no blast, no killings of innocent people and no public outcry, the Western leaders will behave the problem is not festering.

Tuesday, February 5, 2008

Auschwitz: Beyond human understanding

January 27, 2008: Sixty-three years down the road from the day when the liberation of the Auschwitz concentration camp took place in 1945 signalling an end to the campaign of systematic murder which saw the extermination of over six million Jews and millions of other innocent citizens of Europe.

To observer the event at the initiative of the European Friends of Israel (EFI), Marian Turski, a Holocaust Survivor and Chairman of the Board of the Jewish Historical Institute Association in Poland was joined by a delegation of 20 members of the European Parliament and of EU national parliaments to visit the former Auschwitz Nazi death camp in southern Poland.

The group was joined by six Israeli members of Knesset, Israel’s parliament, coming from a variety of political parties including MKs Rabbi Meir Porush (Agudas Israel); Rabbi Nissim Ze’ev (Shas); Nissan Slomiansky (NRP), member of the Lobby for Holocaust Survivors; Colette Avital (Labor), Deputy Speaker of the Knesset and Chairperson of the Lobby for Holocaust Survivors; Yoram Marciano (Labor) and Stas Miszhnikov (Yisrael Beiteinu), the current chairman of the Knesset Finance Committee.

Before Auschwitz became the ultimate symbol of the Shoah or Holocaust, it was just an ordinary town known as Oswiecim. 1.5 million Jews died at the hands of the Nazis at Auschwitz-Birkenau during World War II. Today the Auschwitz Jewish Center which opened in 2000 is trying to teach future generations about the destruction caused by the Holocaust.

The infamous welcome sign “Arbeit Macht Frei” (Work makes you free) hung heavy above the entrance to Auschwitz and I had expected to see the camp without absorbing the pain of its monstrous past but I could not believe what I saw.

In the well-organised rows of desolate blocks of brick houses, there were rooms set out, museum-like, to display crowded images of prisoners being herded off trains, anonymous masses waiting and, everywhere, the horrible Auschwitz stripe. The baby clothes and children’s tiny shoes; a decaying collection of suitcases with names and date of births; piles of adult shoes; a three-dimensional collage of reading glasses and heaps of everyday household items once dear to their owners for usage in their everyday life and who made it to this organised dead-end place under the false hope of a new life.

In one of the rooms there were photographs with several pieces of writing paper covered with a scrawl that was unintelligible to me but seemed to speak volumes about helplessness of existence and trying to clutch the last straw to survive.

Then we embarked on the slow tread to Auschwitz II – Birkenau which was created when the original Auschwitz was full and, with its purposebuilt gas chambers (but today in ruins as destroyed by the fleeing Nazis), it looked an even more sinister killing machine, set in a flat, treeless landscape, The amazing organised way how death could be ordered into neat rows and numbers and that the records were kept with a system that counted human beings nothing more than cattle. Nothing could have prepared anyone for this experience seeing how truly massive Auschwitz-Birkenau is.

Turski, the Holocaust Survivor from here came alive as he pointed the different zones and explained the intricate working mechanisms which were shrouded in secrecy to keep victims guessing till the end.

Asked to comment, Turski, with a heavy voice told New Europe, “We should never wait too long. This happened because world waited too long before it reacted.” He added, “It was modern day slavery as my mother was taken away by a company to labour.” His voice flickered like a candle in the wind literally as gusty winds and snow hit us while he slowly spoke amidst virtually untouched environs since the Russian liberation on January 27, 1945.

“This important mission to Auschwitz permitted us not only to commemorate the victims of the Holocaust and to stand against all forms of extremism and to vigorously condemn them but also to tie the bonds between supporters of Israel from all over Europe which, we think, will lead to substantial improvement of the understanding of Europe in Israel as well as the understanding of Israel in Europe. Moreover this mission was a great opportunity for both Members of the European Parliament and National Parliaments to meet their counterparts from the Knesset and further discuss joint activities related to Israel and the EU,” summed up Dimitri Dombret, Director EFI.

On the way back, Elizabeth Svantesson, Member of Parliament, Sweden and member of the Parliamentary Friendship Group with Israel told New Europe, “I visited Auschwitz in 1989 and again today. This horrifying chapter in human history is important for everyone to get involved.” She highlighted the Swedish project to provide families with a book on Holocaust to bring awareness and educate children about it. And last but not the least, going to Auschwitz was a decision with a choice. The millions of Jews, gypsies, Poles and others who died there did not have that choice.

Israeli leader urges education for youth

Silent Auschwitz and survivors’ testimony keep Holocaust alive

On the blood-stained soil of Auschwitz in Poland, Colette Avital, MK, Deputy Speaker of the Knesset, the Israeli parliament and Chairperson of the Lobby for Holocaust Survivors in a candid interview spoke to Tejinder Singh about the Holocaust, birth of Israel, the pains of growth and vision for future.

Today, January 27, 2008, is third anniversary of UN Holocaust Remembrance Day. It took 60 years for the world body to acknowledge this sanguinary systematic annihilation of human beings. How do you feel about it today?

Its better late than never. It took a lot of time, almost 60 years before United Nation decided to adopt this resolution and it was not easy for UN to adopt it. The fact is that for 60 years they did not recognise the special conditions and special holocaust of the Jewish people which is unprecedented in history. I think today it is very important as it’s not just a question of remembering the past and giving recognition to the special history of Jews. It’s a question of educate the younger generation to know that this happened and should not happen again. The ceremony to mark the day is important but much more important is the message.

The question is whether it will be used to educate the younger generation to be more tolerant to accept other religions, to know that human life is sacred and you can not take human life as if its nothing. You can not think that one people is superior and one people is inferior. We all live on the same planet. If my skin is white or black or if I am a Christian or a Muslim or a Hindu or a Parsi, I have right to believe in the God I have chosen to believe in. This should be very much the part of educational system everywhere.

What will you say to a set of statements with “denial” of this Holocaust?

Its true because many people like (President Mahmoud) Ahmadinejad (of Iran) and the leader of Venezuela and some in Muslim world say that the holocaust did not exist and that we invented it in order to make the world feel guilty towards us and in order to pay a heavy price. This is a terrible thing. It’s adding insult to injury. So one of the reasons that we have this group that goes to Auschwitz with political leaders from so many countries to show them what happened there and we are accompanied by a man who is a survivor of Auschwitz. Because as long as they are alive and they can say that I was here and this is what happened. Now the people understand and in many countries there is legislation against Holocaust denials. I believe that the younger generation today needs to know what the facts of the history are and not to deny and say it never happened.

How did Holocaust contribute to the making of Israel?

State of Israel was in the making because in 1917 there was Balfour declaration and then League of Nations, the predecessor of United Nations decided to give the British a mandate to prepare Palestine to become a Jewish Homeland. There was a lot of basis in creating Israel but at the end of second World War it became very clear what had happened in Europe. That was something that brought about determination on the part of not only Jews in Israel but also other powers in the world to actually accede to the demands of the Jews to have their own state. Although it was not the origin, it greatly contributed to the creation of the state of Israel, the process becoming much more faster, much more crucial and much more necessary because it was clear that the state of Israel was going to take in all the refugees from the concentration camps and it also became clear to the world that the Jews who were fleeing away from Europe when they knew what was happening, no country wanted to give them refuge including US. So the creation of Israel was seen by many powers as something very urgent and very necessary in order to solve the Jewish problem.

How do you assess the condition today and the ongoing struggle for peace?

The state of Israel was created on its ancient homeland but in the past hundred years there has been an ongoing conflict for the people who lived in the country, the Palestinians and some of the neighbours who did not want to accept the Jewish state. Slowly some of the Arab states did accept over time the existence of the state of Israel and even made peace with it, like Egypt, Jordon. With the Palestinians it has been an existential conflict because you have two people who claim the same land. I think as long as Palestine – Israel conflict is not resolved there will be no peace between us and other neighbours. But I think after seven years of Intifada now, there is a leadership in Palestine that wants to make peace with Israel and the rest of the Arab world also has started changing. Not all of them but majority of Arab states are willing now to live in peace with Israel if Israel resolves the problem with Palestinians.

What is your vision for the future?

My vision about the future and hope is that the state of Israel will continue to develop and be a state that is characterised by justice. My vision is that finally after so many years of war and conflict, we will be able not only to live in peace like everybody else here in Europe but also to normalise our lives. Because the purpose of Zionism at the time was not just to have a country of our own but to live normal lives in many senses. Like in Europe, many of the Jews did not have access to certain professions while they always lived in fear. My biggest vision and my biggest prayer is that we will be able to live normal lives.

What are your comments on the fear of ordinary citizens?

Depends more or less what happens. There was a time a few years ago when it was very difficult to go out in Israel as there were so many suicide bombers who came to cafes and blew up innocent people including children. In cafes, supermarkets and buses! We built a sort of security fence and that improved the situation and you know most Israelis don’t want to be prisoners in their own homes so they take the risks and they do go out. But it’s also true that in past two years, Israel is much more safe today.

What has come out of this ongoing pain?

People react very differently to pain. There are two ways: Some who react to pain wanting revenge and others who say I have suffered and now I don’t want others to suffer like me. The second one is probably nobler. In Israel and in Palestine, we have a group of parents who lost their children in wars, in terrorist attacks and they work together: bereaved parents, Israeli and Palestinian have formed a joint group together and have a strong message. They go everywhere and say we have paid the price but we don’t want you to pay the price. I think this is what should happen.

Finally, you are part of the democratic institution of Israel and what do you think is needed today to make it better?

I think it’s a great democracy. The only thing that sometimes we push democracy a little bit too far. The fact is that when the state of Israel was created it was the wish of its founding fathers to have every group in the population represented in the Knesset. It was a very good idea except that it translated into so many political parties that it became sometime very difficult to rule the country. In the beginning at least there were two big groups so that makes the country manageable but when you have multiplicity of small parties, its very difficult to keep the democracy because part of the democratic regime should be stability. When you have so little political parties that are trying to overthrow the government all the time, and you depend to form a coalition on small political parties then price you pay is very high. So we are very much in need for some political reforms to make the threshold a little bit higher. We all think it should be two and half percent and we are trying to see what kind of political reforms we can make to make political life more stable.

Sunday, February 3, 2008

Blood Flowers: With love, from Kenya

Human sufferings, ethnic tensions add to political warfare

On Valentine’s Day, February 14, when you reach out to buy those flowers for your loved one, stop for a second and think of blood spilled on the streets of Kenya through which those were allegedly transported under police and army protection. Valentine’s Day is a big money spinning date for Kenyan growers, thanks to the country’s perfect match of high altitudes and equatorial sunshine.

By developing an end-product wrapped ready-to-sell on the shelves of the Western supermarkets, Kenya has become the European Union’s biggest source of flower imports but the recent political and ethnic turmoil has threatened the trade. “Trade turn over in 2006 from Kenya to EU was 345 million Euro,” said Rolf Persson, Secretary-General, Union Fleurs (European Flowers Association) based in Sweden.

While the global media attention is focused on the sanguinary clashes resulting in nearly a thousand deaths, voices were raised in Canada, Europe, Kenya, and the United States calling “on the international community to help the people suffering from violence in the Lake Naivasha region of Kenya, not the global industrial flower farms that exploit the lake and its people.”

A report, “Lake Naivasha: Withering Under the Assault of International Flower Vendors,” released January 31, blasted outrageous news coverage sympathetic to the flower industry. Pointing out, “With hundreds of people have been killed and thousands displaced due to violence that intensified recently,” Food & Water Watch Executive Director Wenonah Hauter said, “The situation in Naivasha is a human tragedy, not an investment loss. Our sympathy and aid should go to the people in the region, not the international corporate owners of these flower farms that exploit the workers, the lake, and the environment.”

“The problems in the floricultural industry due to information from Kenya are transports of all kinds,” said Persson, and, according to local reports, army and police are guarding flower transports in Kenya instead of people as the trade is controlled by the rich and influential. The bloody clashes taking place today are a cumulative effect of years of tensions between local tribes and patronage of ruling class to their own people.

Speaking to New Europe, Helena Clarke, Kenyan-British freelance journalist based in Brussels explained, “President Kibaki is from the Kikuyu tribe which stands for the majority, the rich and the elite. Most of the flower farms are owned by the rich, mostly Kikuyu in the Rift Valley.”

“Originally Rift Valley is land of the Kalentin and the Masai but Kenyatta, Father of the Nation and Kenya’s first president, himself a Kikuyu, helped his people to settle in the Rift Valley. During his term he made sure he helped his people and that when he was gone, he would leave his people wealthy.”

“Naivasha Lake is the second largest and highest lake of the central Rift Valley lakes. This fresh water lake has kept much of its colonial charm and is the centre of a prosperous flower export business.”

These sentiments are echoed in the aforementioned report which states, “Public access to the freshwater Lake Naivasha is limited because the flower farms own much of the land around the lake, leaving poor residents to find water from communal taps and waiting in long lines to do so. They’ve created an unsustainable increase in the labor population, depleted the lake’s waters, and pumped the local environment full of toxic pesticides and fertilisers.”

“The farms surround Lake Naivasha. They deplete its waters and poison them with pesticides,” said Maude Barlow, national chairperson of the Council of Canadians. “They are sowing the seeds of economic and environmental devastation that, unless stopped, inevitably will yield a harvest of poverty, water deprivation, and violence.”

“These flower farms are harming people and animals alike,” explained Josphat Ngonyo, director of the Africa Network for Animal Welfare. “Numerous bird and fish species are disappearing from the area and that’s a problem for the environment and the people who depend on the lake.”
Plant life has vanished, and the local hippopotamus population has decreased from 1,500 in 2004 to 1,100 in 2006. Barlow and Hauter witnessed the destruction firsthand when they visited a local flower farm with a documentary film-maker Sam Bozzo during the World Social Forum in 2007.

Barlow recalled seeing “pipes pumping water from the lake to the flower greenhouses and a ditch where waste water drained back into the lake. If action isn’t taken immediately, the lake will not only be polluted, it will be drained.”

Although Persson said, “More than 100,000 people are directly depending on the floricultural trade and without the possibility to export these people will be out of jobs and income and the crisis will be worse,” the ground reality of working conditions and monetary benefits for workers are deplorable.

Chemicals used in the flower facilities are sickening workers. Wenonah Hauter, during a trip, observed some workers in protective gear spraying flowers, while others had no protective clothing.

Persson suggested, “Europe can offer political input to solve the crisis and since a fundamental reason to this sort of problems are unemployment and poverty Europe can offer more business and trade opportunity so more people can get a job and income. The floriculture industry is a good example what Europe can offer to create jobs and income in the developing countries,” but human rights observers and environmental gurus are warning Europeans and others to consider humane factors before indulging in those flowers.

“Factory flower farms have wreaked havoc on Kenya’s rivers and on Lake Naivasha, all to extract floricultural and horticultural commodities for export to wealthy destinations in Europe and elsewhere,” said Olivier Hoedeman of Corporate Europe Observatory. “Europeans don’t want to say ‘I love you’ with flowers that cause that kind of harm.”