LAGOS -- Corruption has once again infiltrated the political ranks of Africa. In a move widely condemned by the World Trade Foundation (WTF) and numerous similar organizations, the Nigerian government has recently cracked down on the backbone of its financial and economic systems.
Under the guise of corruption investigations, the government has frozen all shares belonging to five of the nation's largest banks. Earlier, the government had granted the five banks a total of 400 billion naira ($2.6 billion) in bail-out loans due to lack of cash reserves. However, the banks continued to run into debt due to bad loans eventually totalling 1.14 trillion naira between the five of them.
The government used this outcome as a means of scapegoating the nation's banks with the blame for the crisis on the hard-hit Nigerian economy. The EFCC, Nigeria's governmental commission against financial crimes, is reporting that one senior bank executive has already been charged with corruption crimes and that "other executives will appear in court later."
The WTF calls for restraint on the government's side, recognizing these executives' innocence and good intentions. In stressful times in the financial sector, little hope is left for the banks and the very least these executives can do is write off a couple of under-the-table loans to "individuals or companies using fictitious names" (naturally, without approval from the board). In that way, they can at the very least ensure the welfare of their family and friends.
Related reading: http://news.bbc.co.uk/2/hi/business/8230692.stm
Monday, August 31, 2009
Wednesday, August 26, 2009
The African Caste
ABUJA -- Developed and popularized in Hindu South Asia, the caste system of classes has been implemented in various scenarios and uses around the world. One of the most successful such examples is the modern establishment of trade and wealth between the world's economies.
Within this system, the economies of the world are classified into 3 castes: the 'developed' economies (or the First World), the 'developing' economies (alternately, the Second World), and the 'underdeveloped' economies (often referred to as the Third World). As with the traditional religious and social caste system seen in much of the Hindu world today, economies are assigned to one specific caste, which has a specific rank of importance and power in the system. Additionally, it is nearly impossible for members of one caste to leave their caste and join another.
First implemented by imperialist-era Europe to establish viable colonies and trade routes to newly-claimed territories in the Far East, Africa, and the New World, the economic caste system has been a crucial pillar in establishing the worldwide distribution of wealth and power and helping cement trade routes and relations.
Regrettably, there are also those opposed to this set-up of resource transactions--"enemies of free trade" as the World Trade Foundation (WTF) dubs them. Among these non-conformists stands current Nigerian President Umaru Yar'Adua. Rejecting his nation's African 'underdeveloped' caste, Mr. Yar'Adua recently revoked a South Korean consortium's license to some of its off-shore oil fields. Citing failure on the Koreans' part to follow through on promised payments on the license, the Nigerian government granted the license to an Indian firm instead.
With the backing of the WTF, the South Korean consortium filed a complaint demanding that President Yar'Adua "did not have such power", reportedly referring to his nation's status as a member of the 'African caste'. As a lower caste nation, Nigeria should not have complete sovereignty over all its resources.
The purpose of the economic caste system is to rest power within the developed nations so that they can make the best use of the resources of underdeveloped caste economies, which often lack the necessary tools and technology. After all, how else is wealth created, if not by buying rights to oil fields worth billions of dollars for a promise of a couple hundred million dollars?
Related reading: http://news.bbc.co.uk/2/hi/business/8212573.stm
Within this system, the economies of the world are classified into 3 castes: the 'developed' economies (or the First World), the 'developing' economies (alternately, the Second World), and the 'underdeveloped' economies (often referred to as the Third World). As with the traditional religious and social caste system seen in much of the Hindu world today, economies are assigned to one specific caste, which has a specific rank of importance and power in the system. Additionally, it is nearly impossible for members of one caste to leave their caste and join another.
First implemented by imperialist-era Europe to establish viable colonies and trade routes to newly-claimed territories in the Far East, Africa, and the New World, the economic caste system has been a crucial pillar in establishing the worldwide distribution of wealth and power and helping cement trade routes and relations.
Regrettably, there are also those opposed to this set-up of resource transactions--"enemies of free trade" as the World Trade Foundation (WTF) dubs them. Among these non-conformists stands current Nigerian President Umaru Yar'Adua. Rejecting his nation's African 'underdeveloped' caste, Mr. Yar'Adua recently revoked a South Korean consortium's license to some of its off-shore oil fields. Citing failure on the Koreans' part to follow through on promised payments on the license, the Nigerian government granted the license to an Indian firm instead.
With the backing of the WTF, the South Korean consortium filed a complaint demanding that President Yar'Adua "did not have such power", reportedly referring to his nation's status as a member of the 'African caste'. As a lower caste nation, Nigeria should not have complete sovereignty over all its resources.
The purpose of the economic caste system is to rest power within the developed nations so that they can make the best use of the resources of underdeveloped caste economies, which often lack the necessary tools and technology. After all, how else is wealth created, if not by buying rights to oil fields worth billions of dollars for a promise of a couple hundred million dollars?
Related reading: http://news.bbc.co.uk/2/hi/business/8212573.stm
Monday, August 17, 2009
A Global American Dream
BEIJING -- Last week, with the backing of the World Trade Foundation (WTF), the WTO declared that China's policy of allowing the goods to be imported only by state-run firms "broke global trade rules." This US-initiated investigation is yet another example of how the United States are helping other nations and fixing their political and economic systems.
Explaining that China's centrally-planned communist system was naturally inferior to its own free-market capitalist establishment, America filed the WTO complaint against China's import regulations. It ruled that, in essence, Chinese central planning and state-run trade policy, a pillar of the communist political system, was incompatible with the US, requiring it to adjust.
The WTF applauds America's determination to--just like in Vietnam and Iraq--forego a nation's right to sovereignty when necessary to assist that nation and help it conform its political systems to the Americans'. In a few years' time, the Chinese economy will start to resemble its American counterpart much more and the Chinese people will finally have wide-spread and proper access to important services such as McDonald's, Coca-Cola, and Ford vehicles.
Hoping to further minimize the potentially negative influence of Chinese culture, the US is also considering imposing import restrictions on major exports, such as car and truck tires, from the Asian manufacturing giant. In turn, the US aims to be able to better reach Chinese customers through China's privatized distributors, thus aiding the materialization of a more global American Dream.
Related reading: http://news.bbc.co.uk/2/hi/business/8205014.stm
Explaining that China's centrally-planned communist system was naturally inferior to its own free-market capitalist establishment, America filed the WTO complaint against China's import regulations. It ruled that, in essence, Chinese central planning and state-run trade policy, a pillar of the communist political system, was incompatible with the US, requiring it to adjust.
The WTF applauds America's determination to--just like in Vietnam and Iraq--forego a nation's right to sovereignty when necessary to assist that nation and help it conform its political systems to the Americans'. In a few years' time, the Chinese economy will start to resemble its American counterpart much more and the Chinese people will finally have wide-spread and proper access to important services such as McDonald's, Coca-Cola, and Ford vehicles.
Hoping to further minimize the potentially negative influence of Chinese culture, the US is also considering imposing import restrictions on major exports, such as car and truck tires, from the Asian manufacturing giant. In turn, the US aims to be able to better reach Chinese customers through China's privatized distributors, thus aiding the materialization of a more global American Dream.
Related reading: http://news.bbc.co.uk/2/hi/business/8205014.stm
Monday, August 10, 2009
Ethical Investing
FRANKFURT -- Ever since man first laid aside resources for better use elsewhere, man has been investing. This practice has come a long way since then. Even the days of speculation seem to be over; the notion of more traditional and longer-term loyalty investments is slowly reconquering the minds of bankers and investors around the world. This is a special report by the World Trade Foundation (WTF) documenting the rise of this latest fad.
One of the pioneers and principal supporters of this trend is religion. More and more banks are now offering special banking services to suit the requirements of various religions, reflected in the growing availability of options such as Sharia banking in the world today.
However, a recent incident at a German Roman Catholic bank reveals that some of these banks are already abusing their clients' trust. In this particular case, invested some of its clients' assets in impious ventures such as defence, birth control, and tobacco.
Following the revelation of this trespass of beliefs and values, the bank issued a statement of apology. Nonetheless, the WTF warns that similar abuse of trust is imminent and poses a significant threat to modern society.
In our modern day and age, church and the state are separate. However, in order to continue to preserve the positive morals and values of our society and ancestors, the church must exercise some form of power: religious ethical banking is the solution. Yet if our banks continue to invest in these sinful practices, no matter how profitable, society will never be able to rid itself of evils such as birth control and stem cell research.
Related reading: http://news.bbc.co.uk/2/hi/europe/8180739.stm
One of the pioneers and principal supporters of this trend is religion. More and more banks are now offering special banking services to suit the requirements of various religions, reflected in the growing availability of options such as Sharia banking in the world today.
However, a recent incident at a German Roman Catholic bank reveals that some of these banks are already abusing their clients' trust. In this particular case, invested some of its clients' assets in impious ventures such as defence, birth control, and tobacco.
Following the revelation of this trespass of beliefs and values, the bank issued a statement of apology. Nonetheless, the WTF warns that similar abuse of trust is imminent and poses a significant threat to modern society.
In our modern day and age, church and the state are separate. However, in order to continue to preserve the positive morals and values of our society and ancestors, the church must exercise some form of power: religious ethical banking is the solution. Yet if our banks continue to invest in these sinful practices, no matter how profitable, society will never be able to rid itself of evils such as birth control and stem cell research.
Related reading: http://news.bbc.co.uk/2/hi/europe/8180739.stm
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