By Alec van Gelder | Friday, June 25, 2010

How to make sure Kenya’s poor are even worse off than they were before.  Capping prices on food will only make it more costly for the nation’s struggling businesses to invest, produce and distribute these essential goods.  The private sector is part of the solution: if the government is really intent on tackling the problems of high and volatile prices, it would remove the many barriers to doing business that currently make Kenya the 95th most business-(un)friendly economy in the world.  Tackling one of the world’s highest rates of corruption might also help.

By Timothy Cox | Wednesday, June 23, 2010

Our daily round-up of what other think-tanks and commentators are saying on the big issues:

The Tax Payers’ Alliance commends the new Budget.

Temba Nolutshungu explains how the precautionary principle harms developing countries.

Dan Ikenson urges restraint in lauding China’s decision to allow the yuan to appreciate.

By Timothy Cox | Monday, June 21, 2010

Our daily round-up of what other think-tanks and commentators are saying on the big issues:

Aidwatch on the importance of having independent aid critics.

The Financial Post awards the “Rubber Duckie for Junk Science” to the media covering the Atrazine debate.

 

By Caroline Boin | Monday, June 21, 2010

Whistleblowers offer us small glimpses into the politics and bribery that surround international environmental agreements. Both The Times and the BBC have discovered that Japan has bought developing countries' votes on the International Whaling Commission (IWC).

A two-week-long meeting, starting today, will decide whether the 24-year moratorium on commercial whaling will remain in place. Japan is keen to revive commercial whaling – despite a lack of consumer demand and a declining whaling industry. The governments of Grenada, Guinea and Ivory Coast, amongst others, seemed ready to sell their vote to Japan, when approached by undercover journalists. And for what? A “minimum” of $1,000 a day spending money during the IWC meetings, according to Guinean officials; “good girls” that were made available at hotels for Tanzanian Ministers; or, in the case of Kiribati, foreign aid. Naturally, anti-whaling nations and conservationists are outraged.

However, they don’t apply the same standards of democracy and transparency when it comes to other international agreements, where governments’ votes are regularly bought. In exchange for Russia joining the Kyoto Protocol on climate change, the EU supported its accession bid to the WTO. And developing countries stand to gain hundreds of millions – potentially billions – in adaptation and technology transfer funds, and straightforward aid, if they sign up to the prospective climate change agreement.

The reality is that international politics often amount to a “$1,000 a day” games of buyoffs- far removed from the people or causes they seek to represent.

By Timothy Cox | Friday, June 18, 2010

Critical:

•    Trade and investment to promote African growth.



Criticised:

•    The dangers of romanticising small-scale farming in the developing world.

•    US drugs bureaucracy costing money and lives.

•    Energy and climate legislation causing higher food prices.

By Julian Harris | Friday, June 18, 2010

The Food and Drugs Administration (FDA) continues to thwart Americans’ access to new life-saving medicines, costing billions of dollars and uncountable lives. An article in the Washington Examiner notes the huge value of innovative new drugs, and equally the cost of delaying them for just one year:

“For HIV/AIDS patients, the value of one year's earlier access would've been $19 billion. For breast cancer patients being treated with trastuzumab, the value of one year's earlier access would be $8 billion.”

And the FDA has even made confessions about their bureaucratic inertia:

"FDA's inability to keep up with scientific advances means that American lives are at risk. While the world of drug discovery and development has undergone revolutionary change... FDA's evaluation methods have remained largely unchanged over the last half century."

The author of the article points to a lack of funding for processing of new drugs, when compared to money spent on other regulatory spending on (supposed) innovation. But it may be better to look at the incentives which cause skewered funding and an illogical, harmful emphasis on caution above innovation.

In a previous paper released by IPN, Corinne and Robert Sauer explore such incentives, and suggest alternative market-based methods of approving new pharmaceuticals. These solutions may seem radical, but more than ever they need to be considered.

By Timothy Cox | Thursday, June 17, 2010

Our daily round-up of what other think-tanks and commentators are saying on the big issues:

By Caroline Boin | Thursday, June 17, 2010

The next decade is to be one of higher food prices, according to the UNFAO and OECD’s annual agricultural outlook report.

The bad news? The increase will in part be caused by higher oil prices, especially in places like the EU and the US where farming is mechanised and fertiliser-intensive. Rising demand for biofuels is also to be blamed- no matter how much the EU and US have sought to absolve themselves of contributing to the 2007/08 food prices hikes. Enough, then, to rethink the current energy and climate legislation that is making oil more expensive and propping up unsustainable biofuel production.

The good news? Higher food prices will also be caused by economic recovery in general and growth in developing countries. More people will be able to afford meat and processed foods, rather than just relying on staple foods. It is also large emerging countries – such as Brazil, China and India – that will step up agricultural production to meet demand, both at home and abroad.

By Timothy Cox | Wednesday, June 16, 2010

Our daily round-up of what other think-tanks and commentators are saying on the big issues:

Jonah Goldberg argues that oil is the real green fuel.

Dr Eamonn Butler on how a culture of secrecy within Europe deters investors.
 

By Alec van Gelder | Wednesday, June 16, 2010

Andrew Mitchell, the new head of the UK’s Department for International Development, is now calling all EU taxpayers to spend 0.7% of their national output on foreign aid, even though the theories behind this “absurd” target have been thoroughly discredited, which we pointed out in the Ghost of 0.7%, in articles, and in interviews we know Mitchell has seen.  Wake up, Andrew, promoting development is about more than throwing good money after bad.  After all, as you say, we have a “moral duty” to help the world’s poor.

By Alec van Gelder | Wednesday, June 16, 2010

Here’s a letter I sent to The Times yesterday: 

Sir,

The Times (“Out of Africa”, 14/06/2010) rightly emphasises the role trade and investment must play to unleash African growth.  UK businesses already have some £20 billion invested across Africa. This money bypasses bureaucrats in Whitehall and feeds directly into African economies, creating better jobs and improving infrastructure.

But your editorial draws a perverse conclusion—proposing another state body, parallel to DfID, with a remit to promote private sector investment in Africa.  Africans don’t need more UK government departments that empower their leaders’ bankrupt policies; they need better business conditions at home.

Africa is shackled with red tape.  Its aid-fuelled governments have built the world’s least hospitable business environment, where it can take 620 days to enforce a contract (in Addis Ababa) or more than two months to export a container (from Angola’s Luanda port).  It is these self-imposed barriers that block further investment—and African growth.

Yours,

Alec van Gelder

By Timothy Cox | Tuesday, June 15, 2010

Our daily round-up of what other think-tanks and commentators are saying on the big issues:

Roger Bate on successfully combating fake drugs in Africa.

The Volokh Conspiracy helps to expose the Congressional conflicts of interest in Washington.