Trade

The Trouble with (Mobile) Phones

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As supply chains go we very rarely stop to ask where the materials in our mobiles phones (cell phones for the American readers) come from, what the human cost might be. The use of coltan, (a contraction of columbite and tantalite, and its derivative tantalum), to make capacitors for electronic goods becomes a problem when its sale funds a civil war and the social impact on the local population includes death, violence, rape, poor labor conditions and the breakdown of family units.

The battles in Central Africa have been raging for almost twenty years and are funded, in large part, by the localized militias’ control of natural mineral deposits, whether directly, or through taxing and exploiting artisanal miners and local populations.

Artisanal mining is at best described as basic. Small teams with primitive tools clear some jungle, dig up the ground and extract whatever minerals they find close to the surface. Through an informal market, minerals are then sold on to middlemen and make their way along precarious routes, through multiple palms greased with taxes and bribes.

In Eastern Democratic Republic of Congo (DRC – democratic? that has got to be a joke, yeah?), at least 5 million people have died in the recent conflicts, of whom it is estimated around 40% were women and children. Recruitment of children as soldiers has been systematic, along with widespread sexual violence as a weapon of war (that’s rape if you were wondering). The warfare is complex and ever changing, with an intricate web of rebel and government-backed militias in combat with each other. Gender-based violence has become a weapon of choice in these conflicts.

According to most experts, smelters and refiners are the main “bottle neck point” of the conflict mineral supply chain. So, an accurate list of smelters would be extremely useful in determining conflict mineral sourcing.  Many of these smelters are highly mobile operations, often based in difficult to reach locations deep within conflict zones and so its likely to be extremely difficult to capture usable data on the operations. 

But hope is on the horizon (well of sorts anyway).  the US has recognized the exploitation associated with, and trade of conflict minerals originating in the DRC is helping to finance conflict characterized by extreme levels of violence in the Eastern DRC, particularly sexual and gender-based violence.

According to Oren Ben-Zeev, a consultant with PricewaterhouseCoopers who assists companies to comply with the disclosure process, the chain of custody of conflict minerals is difficult to establish.

Ben-Zeev states, “identifying the ‘chain of custody’ between the origin of the minerals and the finished products into which they are incorporated, compounds in difficulty for every supplier tier between the smelter and the reporting company. At the end of the day, companies that are far downstream cannot conclusively determine the smelters in their supply chain.”

Conflict minerals are made into essential components in all advanced electronic devices. There is little we, as consumers, can do to change this. But we can vote with our wallets to support those tech companies that demonstrate their commitment to implementing comprehensive due diligences processes in their supply chains.

The Fairphone initiative, based in Amsterdam, offers the first conflict mineral free smart phone, and Intel now manufactures a conflict mineral free microprocessor. Raise Hope for Congo, a campaign of NGO the Enough Project, ranks electronics companies based on their actions to contribute to a clean minerals trade in the DRC.

Next time you reach for your smart phone or tablet, perhaps it’s worth considering what your response will be.

Much of the above is based on work by Jude Soundar and Alex Newton

Logic or Loathing, the Scottish question

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There aren’t many things as bitter as a divorce and it very much looks as if Scotland is getting themselves ready to divorce the British Union (England really).

What those Westminster types appear to have missed is the way the arguments are being put; Scottish arguments in favor of independence are all emotion and national pride. The Westminster arguments are all financial logic, well that’s what they’d like you to think at any rate, the manner in which some of them frame their arguments leads me to believe they’ve had a frontal lobotomy.

I have to admit that there are compelling arguments for keeping the union together though, Scottish tax’s may well rise and incomes could be hit. These of course are the logic arguments but when logic, even compelling logic such as this rubs up against loathing of the sort the Scottish Nationalists display there’s no contest.

Bearing in mind I’m not Scottish, I try very hard not to go to Scotland; its on the whole cold, damp and honestly I struggle to understand the version of spoken English used to communicate up there, in short its not the kind of place that suits me, but I have to admit nonetheless that I have a secret respect for what they might just achieve.

They have all manner of energy resources and wide open spaces, and yes it looks very beautiful in the brochures. They also have the British naval base where the nuclear submarines are based and this could prove a bit of a problem for the whole of the union, never mind the suggestion of a Sterling currency union which the English don’t appear to like one bit. But really I think they might just do it regardless the logistical challenges. After all who wants to be part of a dog end of an empire?

What ever the Scottish decide I will wish them well because if they don’t actually get independence I’m certain they’ll get what was termed Devo-Max which basically means they’ll run almost as an independent nation, just with a few Westminster MP’s to pay for. If David Cameron and his cronies hadn’t been quite to pig-headed about not putting the Devo-Max option on the ballot papers he might have had a chance of salvaging some respect in Scotland. Win, Lose or Draw after the vote takes place I would probably bet that he wont be welcome North of the Border any time soon!

From the politics point of view Scotland is broadly speaking a Socialist nation while the rest of the UK isn’t, so you have to have some sympathy for them, they just don’t get the leaders they want. And I can see why the British Labour Party don’t want them to split away either, it’d mean the end of them as an opposition party in the remaining UK with no possibility of taking power for a long time to come. Basically the remaining UK will have a Conservative Government, unchallenged for quite some time to come. On this point alone I selfishly hope the Scottish people remain in the union, but I wouldn’t hold it against them if they didn’t, in fact I’d be quite the jealous one!

So the divorce papers have been served, the marriage is in trouble, the wife wants to leave after years of abuse and feeling like she’s been treated like an idiot. The husband on the other hand cant bring himself to believe she’ll leave, she wont be able to support herself he thinks.

Like most of these sorts of cases, she divorces him and the husband doesn’t see it coming till its actually happened and his suits are cut to ribbons in a bin-bag at the door of his now former home!

The Problem with OXFAM

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The problem with OXFAM is typical of most large NGO’s; the need for cash, and lots of the it. But if you listen to OXFAM you could be forgiven for thinking that the problem with OXFAM is SodaStream & Scarlett Johansson.

Scarlett Johansson has been an OXFAM Ambassador for around 6-years and so she says, she’s rightly proud to have been associated with the organisation. However, as with many of these organisations there’s a but and big but at that. Scarlette Johansson has a sponsorship deal with a commercial organisation, in this case SodaStream. Nothing unusual in that sort of set-up, famous people are often associated with a brand to promote further brand awareness. Makes perfect sense.

And here in lies the problem for OXFAM; SodaStream are an Israeli company who’s operations are based in Judea & Samaria (Ezor Yehuda VeShomron), what most people would understand as the West Bank Palestinian Territories. Under international law this area is classified as occupied. This is debatable but not the issue at hand. OXFAM actively campaigns against the Israeli occupation.

I wont go into the spoils of war argument here but I could.

150px-Judea_and_Samaria_Area_in_Israel_(all)_(semi-Israel_areas_hatched).svg

But wait a minute, SodaStream who’s employee base is 15% Jewish Israeli and 85% Palestinian Israeli operates an equal pay and conditions policy for those doing the same work. Effectively their policies are colour blind. Scarlett Johansson recognises this and is proud to be linked to SodaStream on this basis.

In many other countries companies foreign owned or not are generally welcomed as wealth promoters and employers and as tax payers. So what does OXFAM say, well their stance is the same as those who support the Boycott, Divestments and Sanctions movement (BDS). OXFAM is a human rights organisation. In their view the company is illegally based on occupied territory and they cannot have an Ambassador who is linked with such a company, its a contradiction that cannot be maintained.

Well they may hold that view but if they honestly do hold that view then they should have sacked her and not allowed her to leave. OXFAM have plainly took the gun, loaded it up, took aim and shot themselves in the foot!

The fact is that most if not all large NGO’s are heavily reliant on sponsorships for their finances. They have huge, almost crippling salary bills to pay and they therefore need the corporate support to survive. The issues of deprivation, human rights and equality become very quickly a secondary thought. In short OXFAM took the view that they needed Scarlett Johansson more than she needed them (she didn’t).

By contrast Ms Johansson has said she is proud to be associated with SodaStream as a company that promotes cooperation and interaction between a democratic Israel and Palestinians. She said the company was committed to “building a bridge to peace between Israel and Palestine, supporting neighbours working alongside each other, receiving equal pay, equal benefits and equal rights. That is what is happening in their Ma’ale Adumim factory every working day.”

The reason, the real reason why OXFAM didn’t tell or even ask Scarlett Johansson to leave; she was no longer welcome as an Ambassador, is that they relied on her for good branding. I have to think that they may live to regret this decision.

As for Scarlett Johansson, well she has handled her self with dignity and has shone a light on the ridiculous BDM movement. Trade is without question a leveller and a conduit for peaceful cooperation.

McDonald’s Promise Sustainable Beef

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McDonald’s, the biggest purchaser of beef in the US has promised that it will begin buying beef from a verified and sustainable source by 2016.

There is a but… They don’t know what verified sustainable beef actually is!

There is no definition of beef, for anybody that is, so this claim by McDonald’s is ambitious in more ways than one I guess. On the plus side McDonald’s are working with suppliers such as Wal-Mart to come with a definition they can work within, but this sounds a bit like asking a fox to guard the chickens. It’ll be a definition that suits McDonald’s but which may not actually resemble anything you or I might understand as beef. So on the negative side the players are setting the rules!

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When I go to my local butcher and ask for a cut of beef I fairly well know what I’m looking at is beef. This might not be so clear with a McDonald’s definition I venture. Beef could end-up being something that’s mechanically reclaimed beef which is roughly equivalent in terms of protein content.

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Bob Langert, McDonald’s vice president has explained that they are not ready to give a figure for how much beef will be from a verifiable sustainable source in 2016, its an “aspirational goal” he says, you better believe it if they don’t actually know what beef is I reckon. But it has been speculated that the process to get from zero to 100% beef from verifiable sustainable sources could take 10-years.

But think about this for a moment; the route the beef takes – cattle farm – suppliers – slaughter houses – patty makers… burger on a bun.  All parts of the supply chain act independently with each taking a profit and still we have the £1.99 Happy Meal!

How do they do it for the money?

Nonetheless verifiable sustainable beef or not a McDonald’s burger will still be 550 calories, and half the recommended level of fat for a day.

Food Alert!

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If nothing changes by the end of 2014 the TAFTA (Transatlantic Free Trade Agreement) will be in force; a catastrophe for those who believe that food and drink are serious issues not to be messed about with so much.

If the agreement comes into force as planned then you will soon be saying hello to genetically modified milk, beef hormones, and chlorinated chicken, not to mention shale gas and oil… And then you will have to say farewell to managed environments, free-range, freedom foods, and a pleasant and green landscape pleasing to the eye as well as our collective conciseness. The influx of products will adversely affect our European food security for what I ask? A populist agenda and cheap shopping!

This project opens the doors to American domination so that they can make by 2029 $0.03 per person with nothing in it for Europeans I venture. The deal will remove trade barriers and tariffs designed to keep safe our own food supply, our own farms and associated businesses. American companies will enjoy commercial equality with our European companies. European jobs will be lost, a new recession is peering at us over the horizon at the end of the decade.

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European social structures will be damaged, possibly beyond repair by this agreement. Social standards will be diminished, economic standards will be diminished, industrial, cultural, and personal freedoms will be diminished because this agreement will attack our basic democratic freedoms through an unprecedented level of influence that will be exercised by the American mega-companies vying to control our food supply chains.

What gain for Europe? Well its suggested that Europe will gain 0.5% of total European GDP but its also said that this figure should be treated with scepticism, it might not happen!

There is also the further very thorny issue of energy supply. The agreement allows for free trade across Europe of energy supply but there is no universality of agreement between European states on the status of energy supply. In some countries certain types of energy (shale gas) is illegal. This is without question a massive area of concern not currently addressed by the agreement or the EU. Democratic rights will certainly be trampled under the American free trade boot when it comes to energy supply.

The European project seems to be under threat from our American cousins attempts to sell Europe food and energy that it does not need or want in most cases. Do we honestly need more Americanisms? Our food is currently too fast, more not less McDonald’s cannot surly be a good thing.

Blair, Bush, Obama and Cameron Surrender the West

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The inevitable result of a publicized decision to pull troops out of Iraq is coming to bear. The resultant power vacuum is being filled not unsurprisingly by al-Qaeda whose operatives have surged in to the Anabar region of Iraq.

Cue American promises that they will send help but not of the troop kind, what other kind might help in the present situation I’m not certain for sure, but help is on the way! What has got to be understood is that the less than convincing claim of victory by the West is seen very much as a defeat of the West by al-Qaeda and others aligned to the same aims; so begins what may prove to be a long and woeful Iraqi civil war.

Similarly, Afghanistan where the very same fate awaits. Coalition troops are to withdraw and on top of a series of strategic blunders the effect will be to hand the country straight back to the Taliban. The effect would seem obvious that these two regions that the West went to war over and lost many lives in an attempt to neutralize them as threats to our societies will once again be a threat to our societies. Only this time round a whole lot more dangerous I venture.

Blame for this impending shambles is not necessarily to be laid at the doors of Obama and Cameron, they just provided the finishing touches. No, its the prolonged moral misjudgement amply displayed by our political leaders en-masse who refused to acknowledge the true nature and extent of the threat posed to the West from the whole region, not just the isolated cases of Iraq and Afghanistan both of whom it must be said were (and will become again) terror-promoting regimes to be feared. Both wars were dogged by mission drift and western self-loathing. The military as well as the Western political leaders missed completely the complex and many faceted face of Islamic religious war against the West.

Further more, with impending capitulation almost complete the Western leaders then decide to lift sanctions on Iran, meaning they will march ever-more quickly toward their murderous intent of developing nuclear weapons. Although I’m sure its good for business with a whole new Iranian market opened up to Western companies just itching to sell them cars and stereos and all manner of other unspeakable vices (to be enjoyed by the rich and powerful behind closed doors only you know)?

But again the political ineptitude is utterly mind boggling with once more a failure to appreciate the effect of spilling yet greater amounts of arms and resources into an already fragile region. Iran with a nuclear weapon will equate to a nuclear armed Turkey and Saudi Arabia both of whom are intent on dominating the region. This isn’t to speak of the unthinkable threat this will pose to Israel who the Iranian regime would happily wipe off the world map. But still more confusing is that US Secretary of State John Kerry bizarrely suggested that Iran should step in to help with Syrian peace talks. This to me would appear that they are setting a kleptomaniac to catch a thief,I can only think it must have slipped his memory that Iran is Assad’s foremost patron in the region so how that’ll work I’m mystified.

Lest they forget our politicians should be reminded there are many splits and divisions in the Islamic world and particularly those factions committed to war on the West. If they are honestly going to wage war with these people then understanding and acknowledging the threat they pose would be a really good start.

The Hordes are coming?

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Schengen Agreement
Schengen Agreement (Photo credit: Wikipedia)

Since 01 Jan. 2014 Romanians and Bulgarians have had the restrictions on free movement lifted, 7 years since accession to the EU and now they are free to travel for work.

The Disaster Scenario for British PM David Cameron I guess. He announced that Romanians and Bulgarians would not enjoy the same freedoms as those from other European countries, no not a bit of it, they would be excluded from claiming the same social benefits freely available to others. Britain would not be over-run by scroungers!

David Cameron knows this ‘problem’ does not arise, they are coming to work in the main. But he nonetheless continues to agitate the populist radical right who are spoken to by UKIP. He will continue to do this right up to the European Elections in May 2014, after then who knows what his and his party’s position on the matter will be. Add to this political frenzy of over-speculation the British tabloid press coverage and yes we have a storm of Romanian and Bulgarian scroungers just simply queuing to get on planes, trains and automobiles to get to Britain, and only Britain!

This is no shock, back in 2007 when the 2 countries gained accession there were fears, deep seated fears. The British tabloids at the time imagined hordes would come, fill-up the remaining few British social houses, hospitals and school places.

At the time experts in immigration and population movement said that the effect would not be great. Yes, some would move to Britain but not so many as to swamp the country in feckless beggars and scroungers though. All that has to be remembered is that from 2001 Romanians and Bulgarians could travel freely in the Schengen area without a visa. There was no mass migration, there is no reason to believe that there will be a mass migration so spectacular that the social fabric of society will be torn away at the seams.

But at the time there was no UKIP, the political tone was much more moderate. This time the press and politicians outdid themselves and their hostile and xenophobic language has attracted amazement and bitterness in Bulgaria and Romania. Many articles on the subject are translated, and often make the headlines in both countries.

But there is a great paradox, in Bulgaria, 18,000 Britons have bought holiday homes in the resorts, enjoying an almost Mediterranean climate on the cheap. There is no animosity between the British and Bulgarians to my knowledge, except in the virtual space of the tabloids and the comments they generate from our political leaders.

So my conclusion: Bulgarians and Romanians do not have much to worry about Mr Cameron. You have expressed your doubts, you have agitated. Although in my opinion, it is losing the European elections that you are worrying about, not the moderate influx of people wishing to better their lives through toil and hard work. But for many reasons, the Bulgarian and Romanian have a bad image in the EU. This has nothing to do with Mr. Cameron and Sofia and Bucharest it is to do with the economic disadvantages of their nations. The EU is large and will do well to continue to enlarge itself for the time being.

Britain was after-all the architect of Romanian and Bulgarian accession, she got what she asked for so why complain?

Asylum

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English: Chart showing in-country UK immigrati...
English: Chart showing in-country UK immigration removals, (failed asylum seekers and others), since 1993 (Photo credit: Wikipedia)

The media is fond of shining a spotlight on our asylum system, it makes good copy or TV. Its not the best way of running a debate but it does illustrate a reality that should not be overlooked. Britain like the rest of developed Europe is facing increasing asylum demands, probably in the region of 70% increase in the last 8 years.

The influx of asylum seekers is as a direct consequence of the numerous conflicts and wars around the globe. Asylum of itself is not a problem and should never be seen in terms of being a problem, its the fact that there is at the same time massive economic migration going on. Asylum is a tradition of most developed western European nations, a proud tradition in most cases and it must be preserved, it must be accepted that we are fortunate and have the honor of assisting those who need our help. I find it shocking that there are some who reside in this country who feel differently.

Nonetheless, it might be fair to comment that our processing centers are perhaps close to full and stretched for staff. The cracks are becoming obvious. The system is unable to deal with complex situations meaning it slows and blocks preventing those who might most need our help from getting it because we just don’t know they need it.

We should feel rightly proud that asylum seekers come to our countries with the intention of seeking help and maybe even settling on a more permanent basis. The contribute to the wealth (economically and culturally) to our societies. But its clear that the social support systems cannot support these people, those employed to help, the case-workers burn-out with massive levels of sickness absence. All the time the human tragedies build. There is a need to protect the individuals but also there is a need for process which is at best a delayed process.

I would agree with anybody who said reform is urgently needed. Without question we should not settle for half measures, current failures should be corrected, but not at any cost. The economic cost of failure is mounting but so is the probable economic cost of doing the job right. My experience in industry is that doing something right first time is the most economically cost effective way of doing a job. I have no doubt that the same apply’s to the asylum system.

Delays might be necessary, so improved holding centers to accommodate the asylum seekers while the initial checks are being done would be a really good start. Simplification of procedures and processes would also help greatly. These two factors would simply add to the quality and speed of service provided, making it more respectful and certain in outcome.

A win-win in anybody’s language I guess.

At the borders of course better directional control would be needed, this is not a resources issue but probably a training and information issue.

And then once a final decision is made the person if successful should be assimilated into society. With a fully renovated procedure the asylum seeker and society will be both better served.

Final decisions are important and really need to be as speedy as possible. I’m sure most would agree that an asylum seeker should not have to face an almost endless wait on deportation or not. There has got to be clear pathways for those who do not gain asylum, they should not be expected to wait for an appropriate moment for return to their own country.  Our collective responsibility as a European Union should be ensuring those who want and need out help can access it but those who do not are dealt with firmly, fairly and quickly.

Live Together not Side-by-Side

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"The Naughty Step": or, Religion ove...
“The Naughty Step”: or, Religion overthrowing Heresy and Hatred III (Photo credit: Nick in exsilio)

In Britain today there’s a celebration which on the face of it is enormous fun, especially for children. Bonfire Night; a night when there’s a bonfire, fireworks and a communal gathering. What’s often (almost always) missed is the underlying reason for the ‘celebration’ – the conviction and death of a Roman Catholic (Guy Fawkes) for trying to overthrow the monarchy in 1604 by blowing-up Parliament.

The purpose of this post is not a lesson in English history but to point out the divisions in society.

400 years ago Roman Catholics were in the minority in England and were treated in most cases worse than the Protestant owned farm animals, so not even second class citizens. In fact even today it isn’t constitutionally possible for a Catholic to be the Monarch! Yup, that’s right 2013 and a Catholic cant sit on the crown thrown!

The point is that communities live side-by-side and not generally speaking together. The present day situation often revolves around immigrant communities, large and rapid in-fluxes of peoples who’s sole aim is a better life. The Protestant/Catholic question has largely been resolved, well in England any-way, Northern Ireland and Scotland may be peaceful places but I’m quite sure the tensions remain even today.

Its probably true to say that ‘birds of a feather, flock together’ and its to be expected that new immigrants will naturally coalesce into mini-communities centred on the familiarity with those from the home-land, and traditional customs. This is to be expected and initially at least accepted. However, the behavior of the native ‘do-gooders’ does seem to encourage difference, it encourages the whole-scale preservation of cultural practices from far away places. It might even be that these ‘do-gooders’ have a sense of neo-colonial social condescension flowing through their thoughts and ideas. Of course if this is the case then they are guilty of prejudice of an intellectual nature; I’m not sure which is more damaging the thug on the street practicing violence or the intellectual who constructs social barriers to progress.

The politically far-right has begun to take a-hold over some sections of society and intellectually they have been clever in claiming secularism for themselves.  They use the cloak of secularism to hide their ‘hate talk’. Yet it is also true to say they pick their causes, they will often march shoulder to shoulder with religious fundamentalists against causes such as same sex marriage or gay rights. Non-the-less when it comes to some religions the message is in no way complex; The Jewish and Muslim faiths come-in for some very pointed accusations from the far-right.

The realities of every-day life in a multi-cultural society play into the hands of these people, communities living side-by-side in mistrust fueled by the hate speak of the far-right lead inevitably to these divisions being exploited for the benefit of hate. Cultural symbols become a metaphor for religious and cultural intolerance. Those of hate who hide in the Churches and Mosques openly accuse and attack those who do not practice as they do. The phobias become pervasive, leaching into everyday society, the press, the media and yes even into everyday conversation. Difference becomes a topic of conversation, it becomes a main event, a reason to hate, to mistrust, not to live together.

The issue really isn’t the head scarf or whatever symbol is chosen, its the definition imposed by those who might wear and use it as a justification of their personal being and by those who do not wear it and point to their own justifications for its removal. The head scarf, the golden crucifix, the yarmulke… these become the very things that generate hate, the ideas become something obscured.

The dominance of a Protestant culture remains in the British legal system and it could possibly be argued that strengthening of this could actually lead to greater harmony. Those with conflicting views would have a firm rule to live by and if they cannot may seek out less difficult places to dwell. The cultural gaps that have been allowed to develop are where those who hate have come to exist, to thrive, to push out from. The cultural gaps are often defended as the places that freedom exists but is this so? Well, yes actually, but its the freedom to practice hate that gives them a bad name.

The current situation is difficult and set to become even more difficult with further removal of barriers to migration. The far-right I’m sure will gain more favor over the coming year after the in-flux of Romanians & Bulgarians. It seems inconceivable that the bonds of kinship will be broken on arrival in Britain (or France or Italy or anywhere else for that matter) and I’m sure it will provide food for the far-right that these people fail to integrate with immediate effect. I’m sure that they will fall prey to the emphasis on skin-colour, on religious difference, on cultural practices but most importantly that they are just plain different.

In my mind, equality, emancipation and universalism should be the goals of society applied evenly to all, the immigrants, the far-right, the far-left and those in the centre. Assimilation should be the aim of all peoples, to live together not side-by-side.

Forgivness

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Temple of Forgiveness
Temple of Forgiveness (Photo credit: arno gourdol)

Forgiveness does not justify another’s actions (against you).

The true benefactor of forgiveness is ourselves, do not make the mistake of assuming it is for the benefit of the offender, of the person we forgive.

By giving forgiveness you free yourself from the effects they have on you and your well being.