New study: Corporate profits drive up inflation in Australia – not higher wages

Publicerad denFörfattareHarry Markham

A recent Australia Institute report has shown that profiteering is the source of the country’s high inflation. This is in contrast to the Reserve Bank of Australia’s fearmongering claims that higher wages are the main threat to economic growth and security. The report highlights the need to control excess profits and artificially increased prices in order to protect the purchasing power of workers, and argues that increased wages should not be feared.
We’ve all heard the argument before—if wages increase, prices must increase to cover those wages, and the end result will be inflation. This theory is referred to as the ‘wage-price spiral’. It is often wheeled out to shut down any demands for fair pay, and particularly for the raising of the minimum wage. Contradicting this argument, a study by the Australia Institute has found that inflation is more the result of a ‘profit-price spiral’, with 69% of the nation’s inflation being attributed to excess profits.
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Australia Institute calls wage-price spiral ‘economic fairy-tale’
For many people, the wage-price spiral argument provokes suspicion. Inflation is all around, but wages don’t seem to have risen in line and surely can’t be to blame for higher prices. In Australia, inflation reached a year-over-year rate of 7.8% by the end of 2022. This has resulted in a major hit to the real purchasing power of working Australians.
Australia faces a macroeconomic slowdown due to higher interest rates, which means job losses and even greater income losses in the coming months—all while the nation reports an unprecedented upsurge in business profitability. These profits are shown in the report to be the result of businesses increasing prices well beyond incremental expenses for their own purchases. The institute states that:
“new empirical evidence confirms the dominant role of business profits in driving higher prices in Australia – not wages.”
They argue that the focus of monetary policy by the Reserve Bank of Australia on wage restraint is misplaced and unfair, and that more attention should be given to the artificial inflation of prices by businesses. Dr Jim Stanford, the researcher behind the report, said:
“we’ve been told a story that workers need to restrict wage growth and accept a permanent reduction in living standards in order to fight inflation. This report shows that’s an economic fairytale.”
Report’s major findings suggest profit-price spiral
The Institute’s investigation found that as of September 2022, Australian businesses had increased prices by a total of $160 billion per year above their higher expenses for wages, taxes, and other inputs.
Had those excess profits for Australian-made goods and services not been engineered through increased prices, average annual inflation since 2019 would have been 2.7% per year, as opposed to the reality of 5.2%. This would have also meant that such harsh interest rate hikes would not be necessary, and Australians would have been spared the worst part of job losses and a cost of living crisis.
Despite this empirical evidence, the Reserve Bank of Australia, who conduct monetary policy within the nation, repeatedly refer to the dangers of a wage-price spiral and make almost no reference to the role of excess corporate profits in driving inflation. In their most recent statement from February 2023, the Reserve Bank mention wages 75 times and profits only once. This is despite the fact that corporations have increased their profits much faster than the nominal growth of Australia’s economy, and have benefited from the acceleration of inflation since the pandemic.
The report states that the focus by the Reserve Bank of Australia on suppressing wage growth in their anti-inflation policy and ignoring the role of record profits:
‘blames the victims of inflation, while ignoring its perpetrators, and will impose further needless harm in coming months through further real wage reductions, and quite likely an economic recession.’
Profits grow while inflation’s victims suffer
This story is far from limited to Australia and is being played out across the world. As workers struggle to cover skyrocketing costs, energy companies and big businesses post record-breaking profits. Workers not be taken for fools by their employers and governments, and should continue the fight for higher wages and a share of the profits which they generate, at the expense of greedy owners and investors. Läs mer…

Bolivia: Less poverty and booming economy through nationalisation of mineral resources

Publicerad denFörfattareKontrast.at

Bolivia, a country in the Andes, has developed strongly in recent years. Since the left-wing president Evo Morales took office, poverty in the country has been more than halved, life expectancy has risen by four years and the economy is booming. Bolivia has achieved this through the nationalisation of its mineral resources and an economic policy that takes care of the poorest in the country.
Bolivia was long considered the poorhouse of Latin America. Although the country is rich in raw materials, most of the profits from their extraction went to large corporations from Europe and North America. This changed when the indigenous trade unionist Evo Morales was elected president in 2006. He nationalised the country’s raw materials and introduced far-reaching social programmes to help the impoverished population. As a result, during his time in office, Morales was able to more than halve poverty in Bolivia and the economy grew faster than in almost all other Latin American countries.
From poverty to the presidency
Evo Morales grew up in extreme poverty in the highlands of Bolivia in the 1960s. Four of his brothers died at a young age. He attended school for only six years before helping to feed the family by selling sweets and working in a bakery. As a young adult, he became active in the local coca farmers’ union and took on more and more responsibilities.
The country’s government was controlled by the white upper class, although the population was largely indigenous. The country’s political situation had been marked by wars and coups d’état since independence in 1821. The economy barely moved. Much of the population, especially indigenous peasants in the highlands, lived in abject poverty and had little say in the country’s politics. In addition, the country’s mineral resources were controlled by international corporations. The poor population had hardly anything from the country’s wealth of resources.
The population hardly benefits from the mineral resources of their country. (Foto von Alex Azabache / Unsplash)
Morales wanted to change that. Together with other trade unionists and activists from the indigenous population, he created the Movimento al Socialismo (MAS) party. Their goal was to nationalise the mineral resources, strengthen the rights of the indigenous population and expand the welfare state. Despite opposition from the country’s political elites, Morales was elected the country’s first indigenous president in 2005 with an absolute majority. Under his presidency, which lasted until 2019, the country changed fundamentally.
Nationalisation of mineral resources
One of the first major steps taken by the Morales government was the nationalisation of Bolivia’s oil and gas resources. By law in 2006, the large international corporations that had controlled these mineral resources until then were required to sign new agreements with the state oil and gas company Yacimientos Petroliferos Fiscales Bolivianos (YPFB). In some cases, YPFB took over the extraction of the raw materials completely, in some cases only shares in them. The Morales government took a similar approach when it nationalised the mining industry in 2007. The following year, the Bolivian government also nationalised the largest company in the telecommunications sector.
Through these nationalisations, the government now not only had more control over its own resources, but could also use the profits from their extraction for social and infrastructure projects.
Evo Morales was elected Bolivia’s first indigenous president in 2005. (Foto: Cancillería Ecuador / CC BY-SA 2.0)
The fight against poverty
When the Morales government took office, Bolivia was the poorest state in South America. Morales experienced the bitter poverty of the population himself. His goal and that of the MAS movement was to end this poverty. This was achieved mainly in three ways: strengthening the economy, raising wages and expanding the welfare state.
With the income from the extraction of raw materials, the government modernised the country’s infrastructure. Between 2000 and 2015, public investment doubled. Roads, hospitals, and schools were built. An important focus, however, was the development of rural areas. Through land reform, small farmers gained access to land that was previously in the hands of large landowners. In addition, the government supported food prices to help small farmers and ensure the country’s food security. At the same time, oil and gas refineries were built not only to export raw materials, but to keep value added in the country.
With a stronger economy, higher wages could be paid. A particular focus was on the incomes of the poorest in the country. That is why Bolivia’s minimum wage was quadrupled during Morales’ term in office (2006 to 2019). More money in their pockets meant that Bolivians could now consume more. This further boosted the economy.
Numerous social programmes were created to reduce poverty even further. The universal basic pension Renta Dignidad is particularly central. Many thousands of older Bolivians received a pension for the first time. In addition, poverty-stricken families were supported if they kept their children in school instead of sending them to work. Free meals were also introduced to further increase attendance at school.
Poverty in Bolivia more than halved
Poverty in Bolivia has been more than halved from 47.20 to 15.60 during Morales’ term in office. Life expectancy has also risen from 64 to 68 years during this period. With an average economic growth of 4.7 percent, Bolivia’s economy has grown faster than in almost any other country in Latin America. At the same time, the government has been able to significantly reduce social inequality in the country.
MAS’s reforms mainly help the poorest in the country. (Foto: Lesly Derksen / Unsplash)
More rights for indigenous people
In addition to the social and economic improvements for the broad population of Bolivia, the MAS government was also able to strengthen the political rights of indigenous groups. A new constitution was adopted, making Bolivia a plurinational state. In the course of this, a total of 36 indigenous languages were recognised as official languages. In addition, the indigenous flag Wiphala has since been used on an equal footing with the national flag.
Since the electoral success of MAS, more indigenous people have been elected to the national and regional parliaments or have held ministerial posts. Joshua, a taxi driver in La Paz, explained the political change as follows:
“We used to be governed by the upper class, now our own people govern us. We now live with dignity.”
Morales’ flight from Bolivia and exile
Despite the MAS government’s successes, it has also been heavily criticised. Morales was accused of being too distant from the needs of the indigenous population. In addition, his government was repeatedly accused of a lack of environmental protection. Bolivia’s rainforests are falling victim to slash-and-burn agriculture. The dependence of the Bolivian economy on fossil fuels and raw materials is also repeatedly criticised.
However, Evo Morales received the most criticism for not wanting to leave the presidency. After his first electoral victory, he was elected president in 2009 and again in 2014 with a large majority. In 2018, the Supreme Court overturned a constitutional article that prevented him from running again. When Morales ran for president again the following year, he drew heavy criticism at home and abroad. Irregularities occurred during the election and although Morales clearly won the election, the opposition rejected the result. Riots broke out in many parts of the country. The police and military leadership sided with the opposition. When the military chief asked Morales to resign, he complied and fled Bolivia.
The right-wing opposition then took power and tried to reverse many of the MAS government’s reforms. The welfare state was to be cut back, large corporations were to control the extraction of natural resources again and, above all, the rights and influence of the indigenous population were to be pushed back. The opposition was mainly based on evangelical Christians and the country’s economic elites.
New president continues reform policy
Although it soon became clear that there was no electoral fraud in the 2019 election, the new government repeatedly delayed new elections. Elections were first held in October 2020. These were clearly won by the MAS candidate and former Minister of Economy in the Morales government, Luis Acre. Evo Morales then returned to Bolivia.
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Luis Acre is considered the architect behind Morales’ economic policy and is continuing his reforms. For example, Bolivia managed to keep inflation at the lowest level in Latin America through subsidies for food and energy.
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite / Thomas Hackl as the original source/author and set a link to this article on Scoop.me. https://scoop.me/bolivia-poverty-nationalisation-mineral-resources/
The rights to the content remain with the original publisher. Läs mer…

Scotland makes historic first ‘loss and damage’ payment to climate change-stricken Malawi

Publicerad denFörfattareHarry Markham

Scotland has become the first nation to provide ‘loss and damage’ funding having pledged a total of £7 million to date. The decision comes after an agreement between 200 nations at last year’s COP27 summit to give financial help to developing nations most impacted by climate change. Differing from immediate emergency aid, the money is intended to rebuild resilient communities which have been devastated by climate disasters.
Scotland have already provided hundreds of thousands of pounds from a £2 million pot to Malawi, with the money being used to build resilience in the most vulnerable communities, and have pledged a further £5 million to similar projects from April 2023.
The ‘loss and damage’ breakthrough
November 2022’s COP27 summit, while criticised by many climate activists for not producing radical enough agreements, is credited with at least one big win for climate justice. That victory is the recognition of the concept of loss and damage and the agreement between 200 nations to compensate those who have fallen foul to climate disasters. While money has long been funnelled towards methods of mitigation such as preparing vulnerable nations for higher temperatures and rising sea levels, little has been done to compensate communities who have already lost everything to climate change. This is why the agreement among wealthy nations to compensate poorer nations for loss and damage is hailed as ‘historic’.
The agreement to deliver money to those affected areas is not only financially important, it is symbolic of an acceptance of the fact that developed nations are disproportionately responsible for the damage caused by climate change. While it appears that these payments amount to reparations, actually using the term makes developed nations uneasy and is perhaps too direct of an acceptance of guilt. They prefer, regardless of the reality, to frame these more as solidarity payments.
A popular – and valid – criticism of international organisations and agreements is their tendency to make promises without any meaningful follow-up action, or as Greta Thunberg put it:
“we have now had thirty years of blah blah blah, and where has that led us?”
The first nation that has stopped talking and started acting with respect to loss and damage payments is Scotland, who have pledged a total of £7 million in funding. The first nation to receive funding is Malawi, a country that has suffered greatly from the effects of climate change.
Climate change is devastating Malawian communities
One of the great injustices of climate change is the disproportionate damage caused to developing nations. Despite carbon footprints that often pale in comparison to their developed counterparts, such nations tend to be warmer and drier, and therefore more susceptible to climate disasters with less money available to combat the fast-growing issue. One such example is the south African nation of Malawi. Malawi is particularly prone to long periods of drought and devastating floods.
In 2015 flooding hit the Malawian village of Mambundungu – a recurring problem for those living in the area. Village Chief Isaac Mambundungu looked around him and saw homes submerged, children being swept away, and reported that:
“Even the crocodiles that are found in the river would come and attack the people. So when we saw this, we decided to move to higher grounds.”
So villagers rebuilt elsewhere, with less fertile land available for crops, and tried to defend their new homes as best they could with what resources they had available, but more flooding came and the new location suffered a similar fate. This is a story repeated across the nation in which 80% of people live and work off of the land.
Scotland pays loss and damage reparations to climate change-stricken Malawi
The Scottish government, led by a left-wing Scottish National Party and Green Party coalition, has dedicated funding to a mixture of projects across the country. A large proportion is going towards rebuilding villages across Malawi such as Mambundungu. Elsewhere, around £500,000 has been dedicated solely to rebuilding the Mphatso preschool in Ngabu, which was partially destroyed by flooding in 2022. In addition, seven-kilometres of flood embankments are being rebuilt along the Phalombe River. Money is also being used to build flood defences around the Mbenje cemetery, where floods frequently wash away graves and those buried within them. Residents of Mbenje tell that this is a relatively new problem, and one which they have faced with much distress. Malawi’s President Lazarus Chakwera commented:
“It has made huge differences in the people and their livelihoods because they are given a hand up, so the resilience we talk about becomes a practical issue.”
And emphasised:
“Describing the money as aid is wrong, it should instead be seen as countries taking responsibility for climate change together.”
But how is this any different to aid which is already provided by NGOs? Ben Wilson, a representative of one of the charities chosen by the Scottish government to deliver the allocated funds, stated:
“Often that aid and those aid workers then leave because they go on to the next disaster – and there always is a next disaster. This money is coming in at a later stage when the communities have already received that immediate support. But it’s giving them what they need to build back, to build that resilience, but also to get their lives back on track.”
Loss and damage funding is long overdue
But this should not be perceived as an act of benevolence. Regardless of hesitance from developed nations to frame the loss and damage agreement as a vessel for reparations, that is what it is. Scotland, along with the rest of Britain, was at the forefront of the industrial revolution. They set the ball rolling which led us to where we are now, and profited greatly in the process. The industrial revolution is also intrinsically linked to colonialism, a practice which ravaged much of what is now the developing world and left it ill-prepared for the challenges it faces today. So it is only right that these payments be made, and crucial that other developed nations follow suit. Läs mer…

Peace, environmental protection, integration – Costa Rica a model State?

Publicerad denFörfattareKontrast.at

Costa Rica went its own way: without an army, but with investments in education and health, a sustainable economy and an open society, Costa Rica became a model state in Latin America.
Costa Rica is one of the most prosperous, peaceful and sustainable countries in Latin America. Although the Central American country is located in one of the most insecure and unstable regions of the world, the small country has managed to protect its peace and democracy. At the same time, the Ticos (the common name for people from Costa Rica) have made it prosperous. The country has become one of the most popular tourist destinations in the world. All this despite the fact that before independence, Costa Rica was one of the most insignificant and underdeveloped parts of the Spanish colonial empire.
But how did the small Central American country manage to develop so much? And what can other countries learn from Costa Rica? Here are three of the most important points.
Schoolbooks instead of Firearms
Costa Rica won its independence without violence in 1821. However, the country was not spared conflicts thereafter. Repeated wars and civil wars broke out. For example, the American William Walker tried to conquer all of Central America and establish a slave state there under the influence of the USA. Under the leadership of Costa Rica, however, the states of Central America were able to defeat William Walker.
The turnaround came with Costa Rica’s last civil war in 1948. At the end of the war, the army was abolished and since then Costa Rica has lived in unarmed neutrality. This makes Costa Rica one of the few countries in the world without an army.
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Instead of spending money on weapons, Costa Rica invested in education and the health system. The result is impressive: Today, the Ticos have the highest life expectancy in Latin America and even do better than the USA. In education, Costa Rica has one of the highest literacy rates and one of the highest percentages of university graduates in Latin America. This has led to a strong civil society and a successful economy.
Costa Rica has not only promoted peace in its own country, but has also worked for the peaceful resolution of conflicts throughout the region. The country successfully acted as a mediator in the civil wars in Nicaragua, Guatemala, Honduras, and El Salvador. For this commitment, the then Costa Rican President Oscar Arias Sánchez was awarded the Nobel Peace Prize.
Costa Rica is a Role Model in Environmental Protection
Costa Rica is one of the most sustainable countries in the world and a model of nature conservation. The country obtains almost 100 percent of its electricity from renewable energy and is a global pioneer together with countries such as Iceland and Norway. In 2017, the country went a full 300 days without fossil energy in its electricity generation. Costa Rica is so successful with its sustainable energy that it can even export electricity to neighbouring countries.
The country also has one of the largest biodiversities in the world. More than 5 percent of all known animal and plant species are native to Costa Rica, and this despite the fact that tiny Costa Rica makes up only 0.03 percent of the land area of our planet. By comparison, Austria is home to only about 0.53 percent of the world’s biodiversity, even though the country is almost twice the size of the Central American nation.
This is not by chance. Costa Rica has made great efforts to protect its nature. Until the 1980s, the country was affected by heavy deforestation and only about 30 percent of the land was covered by forest. Costa Rica then launched a massive campaign to reforest the country. Today, almost 60 percent of the country’s territory is covered with forest again.
Hardly any other country in the world has been as successful in reforesting its forests as Costa Rica. (Foto: Waren Brasse / Unsplash)
To protect nature in the long term, Costa Rica has created numerous protected areas, including 26 national parks. The national parks alone account for over 12 percent of the country’s surface area. To put that in perspective: Austria has six national parks, which together make up less than 3 percent of the national territory.
This is not only good for animals and plants, but also for people. Besides being green lungs, the national parks are also tourist magnets. Around 2.5 million tourists from abroad visit Costa Rica’s national parks every year. This makes the country a pioneer in sustainable tourism.
Openness and Integration
Costa Rica is very open and welcoming to people from other countries. That is why the number of people living in Costa Rica but born in other countries has increased a lot in the last decades. People come from different countries and for different reasons. Costa Rica has a long tradition of welcoming refugees. Especially when many countries in Central America were affected by civil wars, Costa Rica took in refugees. In recent decades, however, there has also been an increased migration of workers from Nicaragua to Costa Rica to fill labour shortages in tourism and agriculture. Equally, many people from North America and Europe come to live in Costa Rica because of the natural beauty and pleasant climate.
Costa Rica is comparatively successful in integrating these different groups into society. Besides the openness of the population, this is mainly due to two reasons: the legal regulations in this area and the national understanding of the Ticos.
The biggest legal difference between Costa Rica and many European countries is that all people born in Costa Rica are automatically entitled to Costa Rican citizenship. Children of Ticos born abroad are of course also entitled to citizenship. In addition, it is easier for people with foreign passports to obtain Costa Rican citizenship than in Austria, for example. In Costa Rica you only have to live in the country for five years, in Austria for ten.
Costa Rica’s national identity also makes it much easier for people from abroad to integrate. Being Ticos has to do with language and values. Anyone who speaks Spanish and uses typical Costa Rican expressions (such as tuanis for “cool”, mae for “Oida” or pura vida for everything from “thank you”, “please” to “all is well”) is quickly seen as a Tico. Values that are highly rated in Costa Rican society are pacifism, environmental protection, but especially cosiness and conviviality. The focus of the national understanding on language and values rather than skin colour or origin of the parents makes it simple to integrate into Costa Rican society.
Ticos love nature, tranquillity and cosiness. So it is not surprising that they have made the sloth one of their national symbols. (Foto: Adrián Valverde / Unsplash)
Role model but not without flaws
This is not to say that Costa Rica is a paradise that is flawless. The country has many problems to overcome. Although corruption in Costa Rica is low compared to other Latin American countries, it still leads to large infrastructure projects often not being realised, being delayed or costs exploding. However, it is precisely these projects that would be necessary for the continued fight against climate change. For example, the expansion of public transport in Costa Rica is lagging behind. Therefore, most people still depend on the car, even in urban areas. In addition, social inequality and crime have grown in recent years. The public health and education systems are also under increasing financial pressure.
Nevertheless, the example of Costa Rica shows that a country with peaceful, social and sustainable development can be successful and countries like Austria can also learn a lot from this example.
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite / Thomas Hackl as the original source/author and set a link to this article on Scoop.me. https://scoop.me/costa-rica-model-state/
The rights to the content remain with the original publisher. Läs mer…

“Watershed” agreement: Farmers, water suppliers and communities work together to protect forests and water sources 

Publicerad denFörfattareIngo Geiger

In Bolivia, 24,000 farmers in cooperation with communities and public water suppliers protect more than 600,000 hectares of forest from deforestation, exploitation, and the interests of mining companies—and thus protect the regional water supply in the long term. The Reciprocal Water Agreements (ARAs) are now considered a model for conservation in South America: more and more ARAs are being signed in Peru, Colombia, Ecuador, and Mexico. How do this agreement work? 
Fourteen years ago, María Gutiérrez bought a piece of land in Alto Espejo, Santa Cruz, Bolivia. She now lives right next to the forest. There are a few fruit trees in her garden and a small river runs through it. The river provides her and her animals with drinking water. She sells the lemons, oranges, and tangerines. María lives from this. 
For a few years now, she has been making her own honey. Since then, María’s life has become easier, earning an extra 5,000 to 6,000 Bolivianos (about $800) a year. She got the bees, the boxes, and the harvesting equipment from Natura Foundation. An NGO that promotes biodiversity and sustainable water management. In return, María signed the Reciprocal Water Agreement (ARA). 
María is one of 24,000 farmers who have signed such an agreement. Together they protect 600,00 hectares of forest from deforestation, pollution, and the interests of large mining companies.   
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What is a Recipocal Water Agreement (ARA)?
The “Recipocal Watter Agreement” (Acuerdo Recíproco por Agua) is a contract between the people in the countryside, the people in the city and the public water suppliers. In short, a contract between all the people who live in the same watershed or share the same water source. Basically, it’s a cooperative effort to protect the natural water cycle for the long term. Everyone works together and benefits.
The idea behind it is simple: 

Farmers and rural people protect their forest and receive incentives for doing so: e.g., access to running water or help in growing fruits.  
The incentives are paid for by the communities and the end users through a small fee, in exchange for sustainable and clean drinking water in the long term.
Water suppliers expand their network and provide flowing water to the farmers. 

Definition: What are Reciprocal Watershed Agreements?
 “Reciprocal Watershed Agreements—known as ‘Watershared’ in South America—are simple grassroots versions of conditional transfers that help land managers located in upper watershed areas to sustainably manage their forest and water resources in ways that benefit both themselves and downstream water users.” (Nigel Asquith)
Natura Foundation takes care of the contracts and contributes to the financing of the individual projects at the beginning. The contribution is around 20 percent, so that the projects remain affordable for everyone even after a certain period of time has elapsed.  
Incentives: running water, a beehive, or a basin for fish farming
Access to running water is the biggest incentive, Teresa Vargas, executive director of Natura Foundation, told Mongabay. That’s because many of the farmers who live outside villages and towns are not yet connected to the piped water system. 
Depending on what helps local people the most, however, the incentives can be quite different: a beehive, for example, or help with growing citrus fruits or raising fish. 
The cost of the incentives is borne by the water suppliers, their customers, and the communities. The water suppliers, in turn, lay the pipes and bring the flowing water to the farmers. In the end, everyone benefits: nature is protected, the farmers get an additional income or flowing water and the people in the region have sustainable and clean water in the long term.  
Municipalities, water suppliers and end-users:pay jointly for incentives
Municipalities pay about one percent from tax revenues and 0.5 percent from the budget they receive from the central government. End users contribute either one Boliviano per month ($0.15) or an agreed percentage. Everything is done simply and without bureaucracy, directly through the water bill. The important thing is that no one is forced. The contracts and cooperations are voluntary. 
Depending on the contract, different amounts are collected and managed in a common fund. For 8,000 to 9,000 consumers, this would amount to about half a million Bolivianos (about $72,000). Natura Foundation also pays into the fund. With the standard contract term of 10 years, they only pay about 20 percent at the end. As a result, the project continues to function even after the contract expires and the NGO leaves. The fund can always be used to finance new incentives. And so, bit by bit, the area of protected forests grows. 
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Protection for nature: 23 nature reserves in 20 municipalities—an area of 3.4 million hectares
The ARAs as water protection areas are a successful model. Politicians in Bolivia are now also interested in them—for two reasons: 
The water suppliers in Bolivia are organized in cooperatives or in public companies. The government is therefore responsible for the water supply. What you get here is a concept that is already working in many communities and has more and more supporters. 
Bolivia is one of the poorest countries in Latin America and suffers greatly from the consequences of the climate crisis. But climate change is abstract—lack of or polluted drinking water, on the other hand, is a reality. The issue affects everyone and brings people together. 
Inspired by the success of these water protection areas, more and more local governments are protecting their forests. In the last 10 years, 23 protected areas have been created in 20 municipalities as a result. That’s 3.4 million hectares of forest by not disturbing the natural water cycle.
The model is now considered a model for conservation in South America, with more and more ARAs being completed in Peru, Colombia, Ecuador, and Mexico. Läs mer…

France: Mass protests against higher retirement age

Publicerad denFörfattareIngo Geiger

France’s President Emmanuel Macron wants to raise the retirement age by two years. However, 72 percent of French people are against the pension reform—and the trend is rising. Since mid-January, hundreds of thousands of people have taken to the streets and workers have gone on strike throughout the country. In addition, there is a new form of protest: the union from the energy sector supplied schools, hospitals and poor families with free electricity for one day. In this way, the striking workers want to demonstrate their power and prevent the raising of the retirement age.
They call it a “Robin Hood action”: On January 26, 2023, trade unionist Sébastien Menesplier announced that on that day free electricity and gas would flow to schools, hospitals, social buildings and poor families. In the mass strikes in France, quite a few employees from the energy sector have not only stopped working, according to the report—but have used the levers they are sitting on to create a piece of social justice. “We decided this collectively in a general assembly,” Sébastien Menesplier told the BFMTV television channel. He is president of the National Federation of Mines and Energy (FNME) of the CGT union.
“We have given a favorable tariff to small traders such as bakers or artisans,” he announced. People who have had their electricity or gas cut off because of unpaid bills—”by unscrupulous suppliers and despite the winter,” Menesplier said—were now receiving gas and electricity again.
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“This is just the beginning,” said Fabrice Coudour, general secretary of the CGT-Energie union. “We can carry out Robin Hood actions at any moment.” French energy company EDF left a press inquiry from Kontrast unanswered—so neither confirmed nor denied the accounts.
Fourteen nuclear reactors out of 56 are at a standstill, refineries and gas stations are paralyzed all over the country, trains are not running, schools are not teaching, and employees have also stopped work in factories such as those of the canning company Bonduelles. Some are only striking selectively, on days of the general strike, which kicked off Jan. 19. Others continue to strike without interruption. The pressure of the population on politics is enormous—and also shows that there is more at stake in social justice in general than just this one pension reform. That is the bone of contention.
Trigger of the protests: attack on a central social achievement
It was exactly three years ago—when the masses on France’s streets had already prevented it once with strikes: the increase of the retirement age to 64. The country was at a standstill, the higher retirement age was prevented. Now the issue is back on the table—and the French population is once again on the streets. President Emmanuel Macron and Prime Minister Elizabeth Borne want to raise the retirement age from 62 to 64.
For some neighboring countries, retirement at 64 may sound downright idyllic—in Germany, for example, the current retirement age is 67, in Austria 65. In France, on the other hand, the increase to 64 is considered virtually sacrilegious. Why?
On the one hand, the low retirement age stands for a social achievement from the 1980s under then President François Mitterand: Anyone who attacks this achievement is, in the eyes of the French, attacking the entire social policy. This has been steadily dismantled by the governments of recent years.
Macron’s governments loosened protection against dismissal, cut housing benefits—and abolished the wealth tax. The low entry age therefore has a symbolic value as well as a practical one—less work.
Old-age poverty threatens to increase
It should also be taken into account that the planned pension reform threatens to make old-age poverty even more acute for many people than it already is. People who lose their jobs at the age of 60, for example, or become incapacitated due to physical ailments, are often unable to find new work. But they are then not entitled to a full pension rate. The state saves, those affected suffer.
In particular, people who take parental leave or have been unemployed in between are penalized by this reform—because these years are not counted. Then, in old age, these years are either added on in the form of even more years of working time—or the pension turns out to be particularly low. Since women still take more and longer parental leave than men, the reform would further exacerbate inequality.
Instead, the CGT union argues for higher contributions from working people—but especially from listed companies.
“As a reminder, in 2022, the top 40 listed companies in France made 80 billion euros in profits—an unprecedented peak!” a CGT paper says. That the missing money could be fetched from the super-rich and corporations is one of the main arguments of the opponents:of pension reform.
Despite arrests: Over a million people demonstrated
On January 19, 2023, over one million people took to the streets nationwide. The next large-scale mobilization is scheduled for January 31. In the time in between, however, the protest did not sleep—on the contrary. On many evenings in several cities—Paris, Strasbourg, Nantes—people with CGT flags and in torchlight processions wandered through the cities. A few hundred yellow vests also set off again on their traditional Saturday.

The President of France, Emmanuel Macron, is trying to raise the retirement age from 62 to 64.
So the eight biggest unions across the country called a massive wave of strikes and protests today, with over 200 actions across the country.
pic.twitter.com/WiKOl69nQa
— Read Jackson Rising by @CooperationJXN (@JoshuaPHilll) January 19, 2023

Meanwhile, police repression is evident. Videos from the mass demonstration on Jan. 19 show images of police violence—even apart from that, there are dubious operations. At numerous universities throughout France, students are currently coming together to organize against the pension reform. To this end, “general assemblies” are being held in lecture halls. In Strasbourg and Paris on the Condorcet campus, such general assemblies were stormed by French riot police (CRS). Twenty-nine students were arrested in Paris on January 22 and were forced to hold out for 22 hours in custody, without food or drink. In both cases, the respective university directors ordered the police storming of the student general assembly.
“They want to prevent the student protests from structuring, from students organizing,” said a young woman named Erelle on Twitter—she is part of the anti-capitalist student collective “Raised Fist” (“Poing levé”).
Government wants to push through law without parliamentary approval
Meanwhile, tension is rising at the parliamentary and party political level. Each camp is pulling out all available stops. The government either wants to push the law through as 49-3 – a paragraph that allows a law to be pushed through without a parliamentary vote. Or the law will be pushed through as a purely financial project. Both paragraphs allow for “government bypass” of Parliament, without a vote. Many criticize the procedure as deeply undemocratic.
Meanwhile, the opposition is preparing for resistance from both the right and the left. Both the left-wing Nupes alliance and the extreme right-wing Rassemblement National want to call for a referendum, i.e., to have the French vote on the reform. The crux of the matter is that only one motion may be submitted. The far-right and the left-wing alliance must therefore agree on a text for the motion, or at least endorse the text of their opponents in a vote. A closing of ranks that the left-wing Nupes faction considers unacceptable. Now, the question remains whether the right-wingers will support the motion of the left-wing opponents.
If that happens, however, it remains unlikely that a referendum will actually be held—because ultimately it would require the final approval of the president. For the president, this would be a complete loss of face. According to surveys, 72 percent of French citizens are against the pension reform—and the trend is increasing every week. It is highly unlikely that Macron allows such a referendum.
Nevertheless, the pressure on the government is increasing. After all, the strikes not only bring crowds onto the streets, but also cause very real economic damage. In particular, when gasoline and energy sectors are at a standstill, the economy goes into a tailspin. The next large-scale mobilization is set for January 31. But the French rail union CGT-Cheminots is already announcing that it will go on an indefinite strike starting in mid-February. The fight over pension reform will also be one of endurance.
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite / Lea Fauth as the original source/author and set a link to this article on Scoop.me. https://scoop.me/france-retirement-reform/
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Rent cap in Denmark: rents may increase by a maximum of 4 percent

Publicerad denFörfattareKontrast.at

Denmark introduced a rent cap. The rents were set to rise by 10 percent because they are linked to inflation—as they are in Austria. But the Danish government has removed this link in order to ease the burden on households: rents may increase by a maximum of 4 percent until 2024, and increases that have already been made must even be reversed. 
In January, a letter arrived with the new rent—and it wasn’t a nasty surprise: For his 42-square-meter apartment in the middle of Copenhagen, the Dane will pay only 534 euros per month for 2023 instead of 623. The posting of the user “Piitaa-Pain” spread quickly on the Internet. The reason behind this is a rent cap introduced by the Danish government, which applies from January 2023. Denmark is governed by a coalition of social democrats, liberal conservatives and liberal moderates.
Rents to rise by 4 percent instead of 10 percent
In 2023 and 2024, rents in Denmark may rise by a maximum of 4 percent. Actually, rents in Denmark are linked to inflation, just like in Austria. So without government intervention, Danish property owners would have been allowed to raise rents by almost 10 percent. The 4 percent maximum cap applies to existing and new leases, but also to rents that have been increased above the 4 percent in recent months—those must be reduced again.
“It is crucial for the Danish government to take care of Danish tenants. They should not be forced out of their homes and apartments because of rampant inflation,” Interior and Housing Minister Christian Rabjerg Madsen said in a statement.
Madsen’s ministry presented the law limiting rent increases in September. The Danish government is also working on a new law on rent adjustment from 2025, because even then rents will no longer be able to be increased automatically by inflation.
Rents rise by 8.6 percent in Austria
In Austria, too, there is a discussion about a cap on rent increases: for almost 400,000 leases, rents will rise by 8.6 percent in April 2023 – after rent increases last year of over 6 percent. The reason is the automatic increase in rent by inflation (the “consumer price index”) stipulated in the law. In January, the Social Democrats in the National Council propose that the rent increase be completely suspended until 2025 and then capped at two percent.
Property owners are naturally opposed to this, saying that they would then lack the money to maintain the buildings. The Danish government met this objection: If property owners can prove large investments that are not covered by current rents, they can raise rents above 4 percent in exceptional cases. Landlords are not happy about this either and complain about the bureaucratic effort. Experts assume that this very rarely apply to any case.
All in all, according to the government’s calculations, Danes will save 2.7 billion Danish kroner (about 360 million euros) in additional rental costs. Denmark’s inflation rate reached 10.1% in October, its highest level in four decades, but has since fallen to 8.7%. Rent caps also exist in Spain, Portugal, Scotland, and France.
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite / Kontrast Redaktion as the original source/author and set a link to this article on Scoop.me. https://scoop.me/rent-cap-denmark/
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Nobel Prize Winner Stiglitz wants 70% tax on top incomes

Publicerad denFörfattareKontrast.at

Nobel Prize winner Joseph Stiglitz is concerned about increasing social inequality in the world. The gap between rich and poor is widening. To reverse the trend, he calls for the super-rich to pay a higher income tax and a wealth levy. He says introducing a special global tax rate of 70 percent for top earners “would clearly make sense.”
“People at the top might then work a little less if you tax them more. But on the other hand, our society benefits from a more egalitarian society with greater cohesion,” the former World Bank chief economist explained in Oxfam’s “Equals” podcast, summarized by the British newspaper The Guardian.
Current top tax rates are much lower than what Stiglitz has in mind. A few examples

In the U.S., the top tax rate is 37 percent for incomes above $539,901.
The top tax rate in the U.K. is 45 percent on annual incomes above 150,000 pounds.
In Austria, the rate is 55 percent, but only for annual incomes above one million euros.
In Germany, the top tax rate is paid from an annual income of around 278,000 euros—it is 45 percent.

Only four European Countries have a wealth tax: Spain, Norway, Switzerland, and Belgium.
Joseph Stiglitz: Getting rich is a question of chance—not performance
Stiglitz explained in the podcast that such a new, higher top tax would lead to more redistribution—but at the same time one must also tax wealth fairly. Because that way, the richest people in the world would make a fair contribution, whose wealth has been accumulated over generations. According to Stiglitz, a global wealth tax would have an even greater impact in combating social inequality.
“We should tax wealth more heavily, because a lot of the wealth is now inherited. For example, the young Walmart’s inherited their wealth“, Stiglitz cited as an example.
“One of my friends describes it as winning the sperm lottery. You got the ‘right’ parents. I think we have to realize that most billionaires got a lot of their wealth just by luck.“
The Nobel Prize winner considers U.S. Senator Elizabeth Warren’s proposals for a 2 percent tax on wealth of more than $50 million and a 3 percent tax on wealth of more than $1 billion “very reasonable.” He believes that would “really do a lot to raise revenue that could be used to alleviate some problems our country faces.“
The crisis has made rich even richer
According to Stiglitz, the Corona pandemic has exacerbated social inequality around the world to an “astonishing” degree and “both exposed and exacerbated global inequalities.“
“At a time when so many people’s lives have been so difficult, when they have lost their jobs, when food prices have risen and oil prices have risen, it is shocking how many people and rich companies have made off like bandits,” Stiglitz criticized.
Oxfam study: For the first time in 25 years, extreme wealth and extreme poverty are growing simultaneously
A recent Oxfam study showed that nearly two-thirds of the wealth accumulated since the pandemic began has gone to the richest 1 percent. The charity found that the best-off will have amassed $26 billion in new assets by the end of 2021. That’s 63 percent of all new wealth, with the rest going to the remaining 99 percent of people.
As a result, for the first time in 25 years, the rise in extreme wealth has been accompanied by an increase in extreme poverty. 
The charity said that a tax of up to 5 percent on multimillionaires and billionaires could raise $1.7 trillion a year for the world. That, in turn, would be enough to lift 2 billion people out of poverty and end world hunger.
“While millions of people don’t know how to pay for food and energy, the crises of our time are bringing gigantic increases in wealth for billionaires and billionaires’ wives,” said Oxfam spokesman Manuel Schmitt.
200 super-rich call for global wealth taxes
More than 200 members of the super-rich elite have written to governments around the world in the run-up to the World Economic Forum in Davos calling on them to “tax us, the super-rich, now” to tackle the crisis of inequality. “Patriotic Millionaires”, “Tax me Now” and “Millionaires for Humanity” were behind the campaign.
Among the signatories are Disney heirs Abigail and Tim Disney and “Hulk” actor Mark Ruffalo. Marlene Engelhorn from Austria also participated in the protest—she delivered the letter on site.

Members Phil White and Marlene Engelhorn protest the World Economic Forum in Davos.
It’s time to #TaxTheRich. pic.twitter.com/QwV7aWMPEP
— Patriotic Millionaires (@PatrioticMills) January 17, 2023

This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite / Kathrin Glösel as the original source/author and set a link to this article on Scoop.me. https://scoop.me/stiglitz-tax-on-top-incomes/
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EU to severely restrict export of waste to third countries

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The European Parliament voted in favor of a law that restricts the export of waste. Waste from the EU should be processed in an environmentally friendly way—and no longer exported on a large scale to third countries in the EU. There, it often pollutes entire regions via landfills or is incinerated and damages the environment.
On January 17, 2023, the European Parliament voted in Strasbourg in favor of a law that restricts the export of waste from the EU to countries outside the Union. The goal is to reduce pollution and ensure that materials like plastic are reused and recycled instead of thrown away. The whole thing is part of the European Green Deal.
In the future, waste is to be exported only to certain countries outside the OECD area—and they must prove that they process the waste in an environmentally friendly way. For hazardous waste, exports are to be banned altogether. Overall, less waste is to be shipped around the world and less processed in a way that is harmful to the climate, for example incinerated.
“Out of sight, out of mind: this is how we in the EU currently deal with our mountains of waste. In doing so, we not only export our problem, but also leave the task of fair disposal to countries outside the EU. The consequences of this are often illegal landfills, the price of which is paid by the environment and local people,” criticizes Delara Burkhardt, environmental policy spokeswoman for the Socialist S&D Group in the EU Parliament. So now that is to change.
The Parliament’s report on the EU Waste Shipment Regulation was adopted by a large majority: 594 votes in favor, 5 against and 43 abstentions. Talks between the European Parliament and EU member states are to take place this year to finalize the text. Only then can the law come into force.
Most EU waste ends up in Turkey
The amount of waste exchanged around the world is steadily increasing, with 182 million tons traded in 2018, according to the OECD. The European Union plays a central role in this: according to Eurostat, the European Union exported 33 million tons of waste to non-EU countries in 2021. That’s a 77 percent increase over 2004, and Turkey was the main destination for EU waste last year, with about 14.7 million tons—three times as much as in 2004.
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The second-highest amount of EU waste was exported to India this year—about 2.4 million tons. The countries behind are Egypt and Switzerland, with 1.9 and 1.7 million tons, respectively. Eurostat reports that the amount of waste shipped from the EU to China has decreased significantly in recent years. Namely, from a peak of 10.1 million tons in 2009 to 0.4 million tons in 2021.
The EU-Parliament also agreed on a new directive to give platform workers more rights. Including minimum wage, social security and paid vacation. As well as on a new pay transparency directive to end the pay gap between men and women.
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite / Kathrin Glösel as the original source/author and set a link to this article on Scoop.me. https://scoop.me/eu-restrict-waste-exports/
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Vegan pies, shirts made from coffee grounds, and fan urine-based fertiliser: how Forest Green Rovers became the world’s first carbon neutral club

Publicerad denFörfattareHarry Markham

Third tier English football club Forest Green Rovers are grabbing the footballing world’s attention through their climate friendly practices. The world’s first carbon-neutral club have a fully vegan half-time menu, shirts made from recycled coffee grounds, and are now fertilizing their fully organic pitch with the urine of away fans. They lead the way in a sport so vulnerable to climate change that it stands as an existential threat.
Following two world cups marred by controversy, years of oil state, oligarch and hedge fund involvement at the highest level, and the ever-rising cost of following the world’s most popular sport, it’s easy to see why many people are falling out of love with football. Swimming against the tide, English League One outfit Forest Green Rovers are the unsuspecting source of a seldom found footballing good news story. While elite clubs across the world flirt with oil state ownership and the riches that come with it, “The Green” have staged an in-house revolution to become the first United Nations recognised carbon neutral football club.
CLIMATE CHANGE AND FOOTBALL
While growing inequality in the footballing sphere is a central concern for those interested in the longevity of the game, many are unaware of football’s contribution to climate change. Sport as a whole has a global carbon footprint equivalent to Tunisia, and football with it’s never ending traveling for away days, continental competitions, equipment manufacturing, and stadiums large enough to host a small city’s worth of people, is the greatest contributor of all.
The emission heavy nature of football is self-destructive. A study in England found that one quarter of English league football grounds will be at risk from flooding every season if global warming continues at its current rate. On top of this, players will be expected to play through exhausting warmer temperatures, and games will increasingly be called off or made impossible to reach for fans because of extreme weather events.
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Those involved in the sport are slowly waking up to the scale of the problem though. In 2015, Carlisle United were forced to close their stadium for three months at a cost of three million pounds due to flooding damage caused by Storm Desmond. When a 2021 study revealed that the storm was 59% more likely to occur because of climate change, the Carlisle manager was quick to push for climate friendly progress.
“THE GREENS” LEAD THE WAY FOR FOOTBALLING PEERS
So how did this club, playing in the third level of English football in front of an average attendance of below 4,000 people, become the first UN recognised carbon neutral football club and grab the attention of the world’s top teams?
Their transformation began in 2010 with the takeover of the club by Dale Vince, a green energy industrialist who wanted to transfer his knowledge and ambitions to a new project. He quickly banned the players from eating red meat, and soon after changed the food available at the stadium to an all vegan menu. In addition, he installed solar panels to the stadium in order to cut emissions, created the world’s first organic football pitch, and even brought in a solar powered lawnmower to maintain it. For the fans, Vince introduced football shirts made from recycled coffee grounds and will only release a newly designed kit every two years. Along with greatly cutting emissions, it removes financial pressures from fans who may struggle to afford the newest design each season.
The most recent eyebrow raising move by the club came in 2022 as they revealed that the urine of away fans would be converted into clean water and fertiliser. A spokesperson for the club said:
“Space mission-inspired closed loop technology will convert fans’ urine into clean water and a concentrated fertiliser product, both of which can be used to keep the pitch in top condition… the award-winning modular units will treat wastewater from the urinals through on-site physical treatment. The modules also have the potential for further treatment options of wastewater from the toilets and handwashing facilities to produce compost and flush water.”
The next move for Forest Green is the construction of their planned Eco Park Stadium, a new home for the club, which is set to be the greenest in the world. It will be built almost entirely with sustainably sourced wood and is to be fitted out with electric car and bike charging stations among other eco-friendly facilities.
FOOTBALL CLUBS MUST SECURE THEIR FUTURE WITH CLIMATE FRIENDLY PRACTICES
The kind of outside the box thinking shown by Forest Green, while easy to laugh at for opposing fans, is what is needed on a mass scale should the football industry wish to curb its self-destructive practices.
Hailed the “greenest team in the world” by FIFA, they have reduced their emissions by 42% since 2011 and have mockingly been called “dirty vegans” by rival fans along the way. This nickname is worn as a badge of honor though, and is one that more clubs should aspire to.
While Forest Green are a shining example of how to operate in a climate friendly fashion, not enough clubs are following suit. Should those from every level of the footballing hierarchy wish to continue playing as they have for well over 150 years, they will need to accept progress and make the switch to a cleaner way of operation. Läs mer…