Global inequality prompts call for new UN conference on Financing for Development

Jim Hodgson

The massive tragedies provoked by Russia’s invasion of Ukraine have pushed all other news to the margins. But urgent challenges remain: 

  • climate change – extreme  weather events will only increase (even as some politicians demand more oil and gas production)
  • vaccine apartheid – the global North continues to hog the means to stop the spread, while ignoring risks posed by new variants
  • debt-loads sustained by the most impoverished countries have risen as health and other emergency costs increased 

This week, civil society organizations around the world are calling for renewed conversation about Financing for Development (FfD). For all of its flaws (including the Security Council veto held by each of the 1945-era global powers), the United Nations is still a space where on some topics at least, countries can gather as equals.

The UN Conference on Financing for Development “remains the only place where developing countries are at the table with equal voice and vote on issues of global finance and development.”  

In the face of the power accrued to international financial institutions (IFIs, including the World Bank), developing countries and civil society organizations are demanding a fourth global conference, sometimes referring to “FfD4.”

“The FfD process is unique, as it is the only truly democratic space where global economic governance is addressed, while having the issues of climate change, inequalities and human rights at its core,” say the organizations pressing for a new global conference.

“FfD4 should ensure democratization of global economic governance, recognizing the right of every country to be at the decision-making table, and not only those with concentrated power or resources.”

“Globalizing the Fullness of Life”

Twenty years ago, in Monterrey, Mexico, the first International Conference on Financing for Development happened in Monterrey, Mexico. 

Some of the participants in the 2002 ecumenical pre-event in Monterrey.

Concerned that whatever goals we had for the “development of peoples” (a phrase offered by Pope Paul VI in his encyclical Populorum Progressio in 1967) were being sacrificed by corporate-led globalization, I attended an ecumenical pre-event that was organized by the Council of Latin American Churches (CLAI). Some participants stayed on for the UN event.

My own presentation focused on good experiences I had had in Canada and Mexico of church collaboration in ecumenical and multi-sector coalitions, encouraging participants to join with others beyond their Protestant churches to achieve goals of economic justice.Our closing declaration said participants were motivated to speak out because:

“Poverty, exclusion, misery, unemployment, underemployment, labour instability, the bankruptcy of small and medium-sized businesses, and the deterioration of the environment, have reached an unsustainable limit.” 

We then affirmed several proposals and ethical principles:

  • The market must not define the life projects of our countries. 
  • All economic growth must have the objective of improving the conditions of all of all of society, without exclusions.  
  • Globalization must be regulated with clear and just rules. This implies:
    • Strengthening participatory democracy in decision-making.
    • Creating mechanisms for control and arbitration at the national level that promote codes of conduct to regulate investments, capital flows and loans. 
    • Creating an international arbitration agency and mechanisms for the cancellation of foreign debt.
    • Reforming the international financial architecture, transforming its institutions and revising its mandates, methodologies and decision-making processes. 
  • The urgent need to cancel the debt of our peoples, so as to provide sustainable social development. But we firmly sustain that the roots of the debt be investigated, and that the creditors and debtors in the North and in the South who irresponsibly contracted these debts be made to pay them.
  • The need to amplify the access to information and technology by our developing countries. 

Our declaration closed with a call on “the powers of this world” to “place the market and the international financial system at the service of all people.” We added: “We affirm that the Reign of God is justice and that the blessing of the creator will be with those who hear the cry of the people.” 

One of the documents that inspired the World Council of Churches to participate in the Monterrey conference was “Justice, the heart of the matter,” prepared two years earlier by staff of the Canadian Ecumenical Coalition for Economic Justice (ECEJ) – one of the predecessors of KAIROS.

Salvadorans remember peace accords, celebrate martyrs, dream of a different possible world

by Jim Hodgson

This is a historic week in El Salvador. January 16 was the 30th anniversary of the Peace Accords that ended the country’s long civil war. And this weekend, four Christian martyrs will be beatified – a step toward sainthood – by the Roman Catholic Church.

The commemorations take place in a political and social context that is not what we hoped for when we watched news coverage showing the government and the rebels sign the accords at the Chapultepec Castle in Mexico City in 1992. The president today, Nayib Bukele, has dismissed the Accords as a “farce.” The country is on the edge of insolvency; Bukele flirts with cryptocurrencies that no-one understands; between 200,000 and 300,000 people leave the country each year.

Sometimes looking at the past can offer some signs for the future, and that’s why the celebration of the lives and witness of the martyrs this weekend matters.

Beatification of the Servants of God, Saturday, Jan. 22. Celebrant is Cardinal Gregorio Rosa Chávez.

Best-know in the group is Father Rutilio Grande, a Jesuit priest who was driving with 15-year-old Nelson Rutilio Lemus and 72-year-old Manuel Solórzano, to the small town of El Paisnal to join the town’s celebration of the feast of St. Joseph when they were gunned down on March 12, 1977, in Aguilares, 33 km north of San Salvador. 

The fourth man celebrated is Father Cosme Spessotto, an Italian missionary priest of a Franciscan order who had served in El Salvador since 1950, and was murdered on June 14, 1980, as he prepared to celebrate an evening Mass in his parish church in San Juan Nonualco, La Paz department. Like other church leaders, including Saint Oscar Romero (the archbishop of San Salvador, slain March 24, 1980), he had denounced the crimes of the military junta in the 1970s including the murder of Fr. Rutilio, thus drawing threats against his own life.

Fr. Rutilio’s death came as El Salvador’s civil war was beginning. Over the next dozen years, at least 75,000 people were killed; about 8,000 more were made to disappear; a million people fled. In 1993, the United Nations Truth Commission report attributed at least 85 per cent of the killings to government security forces and related paramilitary death squads. 

Salvadorans recognize many martyrs, among them the four U.S. church women who were killed near the San Salvador airport in December 1980, and the six Jesuit priests, their housekeeper and her daughter who were killed in November 1989 at their home in the University of Central America (remembered in the photo above). May they all be recognized soon too! As James T. Keane wrote in America magazine this week, “We need more dangerous saints.” Photo: Jim Hodgson (2019).

It’s important to remember what the martyrs represent: a persistent witness to life as experienced by people long oppressed, marginalized, landless, impoverished, unemployed, violated on a daily basis. Their sacrifice amplifies the cry of the poor, and I believe influenced the negotiations that produced the Peace Accords in 1992.

The Peace Accords brought about a new legal regime in El Salvador. One of the negotiators for the Farabundo Martí Liberation Movement (FMLN) at Chapultepec was Nidia Díaz, who spoke recently with Jacobin magazine:

“All those laws that oversee the new institutions that are the product of the peace accords were made in COPAZ, the National Peace Commission. They weren’t a whim. In COPAZ, you had the FMLN and the government as parties, and, as observers, the Catholic Church and the UN and the parties that were in the legislature at that moment. All the laws — the law for the National Civil Police, the army, the Supreme Electoral Tribunal, the Human Rights Ombudsman, etc. — were made in COPAZ and sent to Congress. There was a debate process. 

“Now Bukele comes along and says, ‘I don’t agree with these responsibilities and powers,’ and he tries to annul the laws and the constitution. He’s dismantling the democratic process that permitted his very election.”

Rev. Miguel Tomás Castro speaks at a Romero memorial event, March 24, 2009. Photo: Jim Hodgson

Another prominent defender of the peace accords is Rev. Miguel Tomás Castro of Emmanuel Baptist Church (known by its Spanish acronym, IBE). Speaking with the newspaper Diario Co Latino this week, he said:

“There is a lot of criticism of the Peace Accords and an attempt to diminish their value. I think we have to commemorate them, and why not celebrate that the Accords put an end to the armed confrontation? Of course there are various sectors, particularly in the city of San Salvador, and perhaps in other cities where people did not live the intensity of the war as it occurred in other parts of the country. We saw so many people suffer, our brothers and sisters in those communities, places where the war was very harsh and caused greater damage: those people celebrated the end of the war with much joy. And that cannot be hidden.

“And there’s more than one reason that it is important to commemorate and to give thanks to God for the end of the armed confrontations: it’s to say to our sons and daughters that we do not believe in hatred or in confrontation. The Peace Accords give a place for us to say to our younger generations that we want peace, a peace that reaches everyone and a peace that is the hand of justice.”

He was asked what his message would be on this 30th anniversary of the Accords:

“We say that there are two things that we have not been able to accomplish since the Peace Accords. As churches, really there are two themes: on truth, because we have not been able to close the chapter on the Accords without knowing the facts behind the conflict. That’s important; the United Nations recognized it. The second is reconciliation, because you can’t talk about Peace Accords without reconciliation. The church in that has a great responsibility, but it is also an ethical, more and spiritual debt with our people.

“Supposedly we were to go towards reconciliation, but there was an agenda of priorities and the theme of reconstruction was in first place, when reconciliation should have been the principal theme. Apart from whether we lived a conflict or no, the call of God is to see each other as sisters and brother, to build a spirit of family nation, where everyone of us makes an effort so that all of us have lives of dignity. It’s humiliating that every day people leave because there are no conditions here for that life. Something is going wrong.”

The model of reconstruction imposed after 1992 resulted in shopping malls and fast-food restaurants, not sustainable and participatory development or comprehensive land reform.

Even in the face of the current crises in Central America – violence, migration, the impacts of climate change – what gets proposed derives from tired models from the past. Social movements have a different vision.

In the United Church’s Mandate magazine (summer 2020), I reported on a conversation with Miguel Tomás and youth peace-makers in his church:

Mexico and the world: “For the good of all, the poor come first”

JIM HODGSON

As Mexico’s president, Andrés Manuel López Obrador (AMLO), gets ready to meet Thursday, Nov. 18, with U.S. President Joe Biden and Canadian Prime Minister Justin Trudeau on Nov. 18, I prepared a few notes to keep in mind.

In the lead-up to the summit, much attention is paid to U.S. “Buy America” initiatives that threaten the (messy and often-unfair) market created after 1994 by the North America Free Trade Agreement (NAFTA). On that issue, Trudeau and AMLO will each back the other, especially with regard to the automobile industry.

But there are other issues.

Most media fail to understand the Mexican president, or worse: they misrepresent his intent to put impoverished people at the centre of policy-making. I’ll touch on two issues here—energy and Mexican proposals on international development—but their treatment has an impact on climate, deforestation, corruption and migration.

AMLO in Juárez, Chiapas, July 2014–campaigning four years ahead of the 2018 election. Behind him, the lower part of his party’s banner says in part: “We reject the energy reform.” Photo: Jim Hodgson

Energy—and learning about coal and colonialism

One of the points of tension in the Glasgow climate negotiations was the enormous advantage the rich countries of the global “North” have over countries in the global “South,” most of which still struggle to overcome colonial and neo-colonial exploitation. 

And one of the countries that gets criticized for not doing more is Mexico, where energy policy has been a hot topic for most of the past century. (In 1925, when Mexico declared all petroleum products to be of “public use,” and then in 1938 when Mexico expropriated assets of foreign oil companies, the United States (which always sees its corporations’ interests as national interests) objected. Mexico excluded energy from NAFTA, but governments from 2000 to 2018 began allowed limited foreign investment in the sector. AMLO is now trying to reform those reforms.)

While the Mexican representative in Glasgow criticized the last-minute move by India and China to change the language on coal from “phase-out” to “phase-down,” Mexico currently has no phase-out policy in place

In Glasgow, Prime Minister Trudeau repeated his campaign pledge to stop the export of “thermal coal” (the kind used for power production) by 2030. It’s an easy promise to keep: just five per cent of Canadian coal exports are of thermal coal. Most of the Canadian production that is exported is “metallurgical coal” (the kind used for making steel—also harmful to the atmosphere, but harder to do without). 

But Canada does not track shipments of thermal coal that originate in the United States. During the Glasgow summit, a coalition of Canadian groups demanded that Canada end thermal coal exports by 2023

In front, you see the Roberts Bank Superport, and just beyond it, the Tsawwassen B.C. ferry terminal. The superport is owned by Westshore Terminals Ltd., and is the largest single export coal terminal in all of North America. Further back, you see Point Roberts and Mount Baker in Washington state. Photo: Jim Hodgson

Indeed, comparisons of Canadian and Mexican CO2 outputs typify the hypocrisy of global North promises from the perspective of people in the global South. Here’s a comparison of per capital CO2 output based on information from Our World in Data:

Canada (1980 18.14t)  2000 18.52t     2020 14.20t (a 23% drop)
Mexico (1980 3.95t)    2000 4.00t       2020 2.77t (a 31% drop)

And yes: Canada has a colder climate, and our population is spread thinly. But the CO2 output of Mexicans is far lower than that of Canadians, and it’s dropping more quickly.

Development, or something like it, in the face of climate change and migration

Every time someone utters the world ”development” these days, I shudder. Much of what rich countries have done in the name of development over the past 80 years has worsened inequalities and perpetuated colonial patterns of exploitation. But let us rescue what we can….

Front page of La Jornada Nov. 10: AMLO at the UN; cartoon by José Hernández, Nov. 10

In a speech to the UN Security Council on Nov. 9, AMLO proposed a plan that would lift about 750 million people living on less than US$2 per day out of extreme poverty. The plan, which would raise about U.S.$1 billion each year, has three sources:

  • An annual voluntary contribution of four per cent of the fortunes of the 1,000 richest people on the planet
  • A similar contribution from the largest 1,000 private corporations on the planet
  • A contribution of 0.2 per cent from each of the members of the G20.

“Never in the history of this organisation has something substantial been really done for the benefit of the poor, but it is never too late to do justice,” he said. “Today is the time to act against marginalisation, addressing the causes and not only the consequences.”

AMLO said that the main problems of the planet are political, economic, legal and financial forms of corruption, and that these lead to inequality, poverty, frustration, violence, migration and grave social conflicts. Using the pandemic as an example, he noted that pharmaceutical companies have sold 94 per cent of their vaccines, but only six per cent has been distributed to the COVAX facility for use in the developing world—a painful and “complete failure of inclusion.”

It was the second international development plan proposed by AMLO this year. At the end of April, he proposed extending a Mexican government agricultural support program to Guatemala, Honduras and El Salvador—with U.S. financial support—as a way to address root causes of migration.

The program, Sembrando Vida (Sowing Life), has been running in Mexico for over two years and is intended to generate jobs in the small-farming sector, reactivate the economy in areas affected by out-migration, and overcome deforestation. “The plan seeks to overcome social exclusion and the poverty that afflicts 61 per cent of the rural population.” It includes focus on community-controlled farms overlooked or attacked by successive neoliberal governments in power in Mexico between 1988 and 2018.

Critics warn, however, that Sembrando Vida is not sufficient. “It won’t but the brakes on deforestation or other degradation, because it’s not having a direct impact on the causes of these problems,” said Danae Azuara of the Mexican Climate Initiative. Additional programs are needed to end deforestation.

Canada, Mexico and the United States are heavily dependent on fossil fuels for their development and, official pronouncements aside, their governments are likely happier in a phase-down world than in an phase-out one. 

But none is exempt from extreme weather events—heat domes and drought, hurricanes and floods—related to climate change.

Climate change—unpredictable cycles of rainy and dry seasons—is a driver of migration from Central America and Mexico to the north. In talks with Biden, Mexico wants the United States to regularize the status of 11 million Mexicans living in the United States, and to negotiate a temporary foreign worker program not unlike the one that Canada already has with Mexico.