Erle Frayne D. Argonza

CAMBODIA’S RAILWAY RESETTLEMENT

Erle Frayne D. Argonza

Railway projects are now rising in Kampuchea. This is a most welcome news.

The days of Khmer Rouge pogrom on the Cambodian people is way behind us now, as a quarter of a century had elapsed since those gory days of Killing Fields. The intelligentsia, badly decimated by the genocide of the demonic regime, is now seeing new faces from among the younger generations, faces who comprise the emerging development stakeholders there.

Cambodia surely needs to catch up on building its infrastructures, more so the roads and railway networks. New Silk Roads are rising across the continent, and sooner or later the trade routes will traverse through the ASEAN.

Below is an update report on the railway projects, with resettlement issues as entry point to understanding the situation.

[Philippines, 06 July 2011]

Source: http://beta.adb.org/news/adb-partners-agree-plan-resolve-cambodia-rail-resettlement-concerns

ADB, Partners Agree on Plan to Resolve Cambodia Rail Resettlement Concerns

Date

4 Jul 2011

MANILA, PHILIPPINES – The Asian Development Bank (ADB) and its development partners, including the Government of Cambodia, have agreed to a detailed, time bound action plan to resolve resettlement problems on a railway rehabilitation project.

ADB and the Government of Australia are providing over $100 million to help rehabilitate the country’s national railroad stretching from Sihanoukville in the south, through the capital Phnom Penh and up to the northern border with Thailand. Hundreds of families are being asked to move to make way for the line upgrade and many complaints and requests have been made by affected households over compensation rates, compensation payment and assistance, the readiness and adequacy of relocation sites and other issues.

Officials from ADB, the Australian Agency for International Development and the Government reviewed the progress of resettlement and concerns raised by the affected households in early June. They have now drawn up an agreement that sets out specific, tangible measures to be taken to address each of the concerns.

The agreement provides a time-bound action plan for responding to grievances and confirms that no affected households will be relocated until their complaints or requests have been addressed and basic facilities are provided at the resettlement site. An external monitoring group has examined compensation concerns and ADB will consider the findings and decide on further action by the end of July. A timetable for the completion of electricity, water supply and other basic facilities at relocation sites has been drawn up.

The parties have also agreed to an expansion of the income restoration program to fund livelihood support for resettled families.

“ADB is fully committed to ensuring that its resettlement guidelines are complied with so that families who relocate receive the appropriate support and are not economically disadvantaged.” said Kunio Senga, Director General of ADB’s Southeast Asia Department. “We will continue our discussion and close cooperation with the Government to ensure that the resettlement process complies with the agreed Resettlement Plan and ADB’s resettlement policy.”

ADB will also provide additional resources to support the resettlement program, including a communications specialist based in Cambodia to strengthen the information flows between all stakeholders.

Decades of conflict have left the railway in serious disrepair and by upgrading it into an international standard line the project will help lower freight costs, including for staple foodstuffs for the poor, as well as providing new investment and business opportunities. It will also form an integral section of the Greater Mekong Subregion’s southern economic corridor linking Thailand, Cambodia and Viet Nam, and make up part of a broader Pan-Asian rail route.

ASIAN ECONOMIC POWERS BETTER BUILD THE ‘NEW SILK ROAD’

Erle Frayne D. Argonza

The recent finalization of the 450-kph bullet train of China is among the top great news showing the positive, constructive life going on in Asia. Such a life has been led by the ‘emerging markets’ of the continent and seconded by the ‘dragon economies’. Altogether, the economic powers of the region are exhibiting to the world what is meant by the idiom ‘truly human’: constructive, cooperative, life-giving.

Now that Asia’s powers have shown that Asians are indeed humans—and not those “halfway between monkey and man” as imperialist White racists once regarded them—it is time to interconnect the whole of Asia via a New Silk Road. That ‘silk road’ could later interconnect with Africa and Europe, but first of all the priority must be to interconnect Asia in order to catalyze synergy and complete the development goals of all member countries of the continent.

The Old Silk Road once linked the Middle Kingdom, at one time the greatest civilization on Earth (circa 600-900 Before present), to the countries west of it, all through the Persian dominions and Arab dominions, and onwards to Byzantium and the Balkans. Ceaseless warring by the abominations of Europe—the mercantile and oligarchic powers of Venice and Normandy on top of the list—closed that road forever.

Those ignominious Dark Ages are way behind us now, though a new Dark Age is now enveloping the planet through the latest destructive pursuits of the Anglo-European oligarchy. Before the Dark Age would come to fruition, it would be best for Asians to bond together, exhibit cooperation and synergy, and build the New Silk Road.

In today’s context, a ‘silk road’ would comprise of a mesh of interconnecting roads, shipping lanes, and railways. Island Southeast Asia, among the dynamic economies of ASEAN, would benefit immensely from this new form of ‘silk route’ that interconnects roads, ships, and railways.

The prototypes of new bullet trains and maglevs should immediately be erected down the ground, while the stakeholders of Asia talk with each other to map out the Silk Road Plan and implement them phase by phase. ASEAN, India, China, Pakistan, South Korea, Japan would in the best position to lead the talks, both on bilateral and multilateral arrangements. Other countries, such as Nepal, Mongolia, Bangladesh, Bhutan, would follow suit the moment that the talks would yield actual results towards an integrated inter-looping Silk Road for the entire continent.

Surely a Damocles sword hangs by the planet today, threatening to unleash terrible woes as weapons of mass destruction will pummel and destroy nations in a new global conflagration. Needless to say, the Western powers are the ones orchestrating the compass towards this new Dark Age, sick as they are with the polarized minds they inherited from their ancestors.

But it’s never too late to decelerate the forces leading to the new Dark Age, and nothing can stop those forces better than Asia. And I would say boldly, that the New Silk Road will be among the best means or strategies to bring a new Age of Hope to planet Earth, humans, flora, fauna and resource endowments.

[Philippines, 07 May 2011]

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ASEAN LAND BRIDGES & RAILWAY SYSTEM

Erle Frayne Argonza y Delago


Magandang umaga sa lahat! Good morning to everyone!

This analyst will continue on the ASEAN theme and will focus on road networks & railways for this piece. The region is now preparing the foundations for its conversion into an economic union by 2015, so it would be a productive engagement for citizens of the region to put forward their ideas about how to let the region grow and prosper, such as the idea about land bridges articulated here.

Each member country of ASEAN is now developing infrastructures at different paces, thus rendering each country with gaps in terms of road networks and railways. Such I gap, I believe, can be narrowed if the entire region will conceptualize, design, and begin laying down today the foundations of a region-wide road network.

The grand project can be dubbed as ‘land bridges program’ for the goal it can aspire to attain: that of linking all of the member countries into interfacing and interloping highways. There will be defining expressways in each of the countries that will then be integrated, expanded, and closed gap where certain spaces lack them, thus creating a seamless expressway serving as ‘land bridges’ across the entire region.

Running parallel or inter-linked with the road network would be a gargantuan railway system—of maglev technology—that will be part of the land bridging efforts. Transport hubs can be constructed in certain areas where the road facilities and railway can interface. Each member country can choose to link up its railways (running on electricity and diesel) with the regional maglev to comprise a yet another complex network with awesome potency for stimulating growth.

Such a grand project, which when interlinked further with the Mekong integrated project, will serve as multiplier effect in stimulating growth and development for all of the member countries without exception. The flow of peoples, goods and services, and investments across borders will thus increase by many folds, propelling further the generation of wealth for the union.

With the ASEAN central bank and ASEAN development bank running by 2015 and onwards, it becomes facile to fund the gargantuan land bridges project. The implementers will include private construction & development companies in the region as well as banks that can fund the project’s phases from the side of the private builder-constructors.

The project will enhance the synergy of trucking, train, and shipping down the ground and waters. Such effectively done, there will then be a reduction of moving people and goods by airplanes that can then have greater space for mobility.

The land bridges project can spur more ambitious civil engineering, so that civil works can move on to build tunnels beyond 2 kilometers below the ground. The same engineering efforts can then build tunnels across islands and help to ease out the burdens on ships as the link between island components of the road network.

The same project can also facilitate the inter-connection of the ASEAN to a new ‘silk route’ now rising across the Asian continent. The entry points will be India and China, which the union can cooperate with in building linking infrastructures. With such a possibility turned into reality, one can travel by road and trains from Luzon in the Philippines onwards to the Europe, permitting enjoyment of wonderful landscapes across many lands.

Movements of peoples, goods and services to and from the giant neighbors will also move up by many folds with the land bridge project linked up with the ‘silk route’. Ships and planes can be unburdened a bit by such a twist of development, and can then accommodate more goods & services for other continents and regions.

Regional institutions can be erected to design, manage, and regulate the conduct of construction as well as future traffic along the expressways and the railways flows. There should be transparency and efficiency in the bidding of contracts, so that early enough the governance components of the future political union can already be erected.

It is very likely that the project will be highly welcomed by the peoples of the region. The business sector, notably the constructors & developers, could hardly wait to dip their hands into it as soon as the call for participation by the ASEAN will be in place. It will surely leapfrog the region’s catching up with the developed world and with China, rendering it a potential global economic power in the foreseeable future.

[Philippines, 11 November 2010]


[See: IKONOKLAST: http://erleargonza.blogspot.com,
UNLADTAU: http://unladtau.wordpress.com,
COSMICBUHAY: http://cosmicbuhay.blogspot.com,
BRIGHTWORLD: http://erlefraynebrightworld.wordpress.com, ARTBLOG: http://erleargonza.wordpress.com,
ARGONZAPOEM: http://argonzapoem.blogspot.com]

$100B MEKONG INTEGRATED PROJECT TO BOOST ASEAN POTENCY

Erle Frayne Argonza y Delago


Magandang araw! Good day!

Around two (2) years ago, I articulated in one article the gigantic project that will rise in the Mekong River very soon. I was at that time already very supportive of the project, a support that I will re-echo at this moment.

For those unfamiliar with the project, a plan was hatched at the middle part of the decade for an integrated project along the Mekong River. Since the river begins upstream at the China side, China logically has to be involved in it. Finally, with blueprints for implementation on the go around 2007 yet, China committed to fund the projected cost of $100 Billion.

So huge a project, it will have couples of components into it. Power generation, irrigation, flood control, transportation, and tourism comprise the core sector components. A project of that size is four (4) times bigger than China’s own 3-Gorges Dam (it cost $23 at 2000 price index) and could be the largest that the world will ever have experienced once fully accomplished.

Benefiting approximately 300 million beneficiaries along its courses, the project is bound to spur development and generate incomes many folds larger than its total investments. If we use the econometric index of annual income yield that is 10X, then we can expect an annual income yield of $1 Trillion from out of the upstream and downstream industries induced by the project.

Since China is involved in it right now (as implementation is going on), then we expect China to receive the ROI (return on investments) in the widest expanse of benefits possible. That means, once fully operational, China will infuse more investments in the region to fully benefit from the project alone. The ROI will then be much greater than the original $100 accruing to China alone on an annual basis.

We can therefore hope for an excellent win/win situation for China and the ASEAN countries involved (Vietnam is the lead country executor). In the long run, we should hope that the same project would accrue to the growth & development of the entire ASEAN region that is bound to institute an economic union by 2015.

A win/win formula for the ASEAN itself is for it to use the Mekong project as exemplar to design and implement similar projects in other member countries, particularly in island southeast Asia. A particular office can be created in the ASEAN secretariat to oversee and help similar projects that can spin off in other parts of the region.

Since an ASEAN central bank is due for institution by 2015, let us expect that monetary instruments for financial packages can be had for gigantic infrastructure projects of the magnitude of the Mekong project. Probably an ASEAN Development Bank can also rise alongside the central bank, thus reinforcing the potency for launching gigantic projects that will be financed internally by the region itself.

If ever the ASEAN will wish to tap other countries for co-financing of the projects, it should be the emerging markets as top priority such as China, India, and Brazil, countries that will be more sympathetic to regional development. The option will help us veer away from the mal-intents of Northern banks that tied up developing countries in debt peonage and won at the expense of the developing countries.

As a matter of goodwill, ASEAN should better enter into the picture and look at other facets of the project that the future union can fund. The expansion phases of the Mekong project, for instance, can be taken over by the ASEAN itself, thus lessening dependence from external funders.

There are always pains to any large project, these being part of the costs of any undertaking. Nonetheless, the Mekong project should be supported and must go on until full completion. This will render it as an exemplar just right in time for the creation of the ASEAN economic union by 2015.

[Philippines, 05 November 2010]


[See: IKONOKLAST: http://erleargonza.blogspot.com,
UNLADTAU: http://unladtau.wordpress.com,
COSMICBUHAY: http://cosmicbuhay.blogspot.com,
BRIGHTWORLD: http://erlefraynebrightworld.wordpress.com, ARTBLOG: http://erleargonza.wordpress.com,
ARGONZAPOEM: http://argonzapoem.blogspot.com]

INFRASTRUCTURES FOR PEACE: COMMENDING MINDANAO’S LANAO PROJECTS

Erle Frayne D. Argonza


Peace be with you! To all devout sons and daughters of Allah, love and peace!

Permit me, through this note, to commend an ongoing project in Mindanao (Philippines) that showcases the theme of ‘infrastructure for peace’. This is the GEM Project, short for Growth with Equity in Mindanao. Funded by the United States A.I.D., the GEM will ensue till 2012 yet.

A report titled “GEM program continues in Mindanao” (Manila Bulletin, 25 July 2010) gave a brief update about the GEM situation particularly for the province of Lanao del Norte.

To reminisce a bit, Lanao was among the provinces where the insurgent MNLF (Moro National Liberation Front) operated most actively, and was among territories that could have seceded from the Philippines. A peace pact was signed between the MNLF and the GRP (Government of the Republic of the Philippines) in the 1990s, during the incumbency of Fidel V. Ramos as president, thus ending decades of conflict.

The conflict down south led to casualties of over 100,000, while another 500,000+ Mindanaoans (mostly Muslims) migrated from the island to more peaceful areas across the Philippines and in Sabah (over 250,000 alone ran to Sabah and are still residing there). That conflict explains why there are so many Muslims in Manila today.

The GEM infrastructures, dubbed as BIPs or Barangay Infrastructure Projects, are showcases of development engagements that were able to take off and prosper largely due to the cessation of hostilities between state and rebel armies. As reported in the news, there are 44 BIP projects alone in Lanao del Norte, all of which are proceeding well thanks to the strategic peace in the area.

What the GEM narrative is telling us is that total cessation of hostilities is a pre-requisite for development engagements to prosper in any given area particularly in the hinterlands. There is no chicken-and-egg debate whatsoever when it comes to development work: build and cement peace in the area as sine qua non, and development engagements can take take off to induce growth in the affected area.

Having been a development worker for so long in my life, a work that almost got myself dead after contracting falciparum malaria in the early 80s, I resonate with those stakeholders who opine that development cannot proceed in an area where violence prevails as the norm. Such violence could be due to insurgency, warlordism, clan wars, and/or upscaled criminal activities (e.g. drug cartels and gambling chiefs lording it over in the area).

I have already gotten tired of the psychopathic propaganda of rebel Pied Pipers who peddle the lie that “insurgency has been caused by poverty, by the absence of development projects” verbiage, which is toxic mental junk. Certain insurgent groups are no revolutionaries but criminals cashing on the support of patrimonial interest groups, and role-playing social predators in their areas of operations.

A cursory psychoanalysis of the individual members of those insurgent groups would reveal psychopaths or sociopaths who are acutely sick of personality disorder, or at the minimum possess what Theodore Adorno termed as ‘authoritarian personality’. They are drawn to fanatical movements that cohere with their psyche and warped sense of justice, such as racist, jihadist, and communist groups.

Such persons, to my mind, are no longer humans in the truest sense of the word but are rather demoniacs who prey on helpless folks that suffer the most from their violent operations. Possessing borderline personalities or intelligence levels (sub-human levels), they are likewise those who join mafia groups.

Absent those demoniacs in the area, and you would have the environment for building peace, cooperation, and growth. That experience is what is now happening in Lanao del Norte where the BIPs of GEM are now going on.

To date, 23 BIPs were already accomplished (finished contract) and are now usable, comprising of slab bridges and solar dryers for grains. You could just imagine the glee of the village folks currently utilizing those infrastructures, folks who for so long had no access to simple infrastructures such as slab bridges.

Let me re-echo my commendations to the GEM project and the stakeholders directly involved in their planning, implementation, and utilization. Let the GEM story reach the widest latitudes of Mindanao and the planet to remind warring stakeholders of what zero hostilities can do to build life in their given areas of operations.

[Philippines, 12 September 2010]


[See: IKONOKLAST: http://erleargonza.blogspot.com,
UNLADTAU: http://unladtau.wordpress.com,
COSMICBUHAY: http://cosmicbuhay.blogspot.com,
BRIGHTWORLD: http://erlefraynebrightworld.wordpress.com, ARTBLOG: http://erleargonza.wordpress.com,
ARGONZAPOEM: http://argonzapoem.blogspot.com]

RURAL POVERTY ALLEVIATION VIA WATER RESOURCES

Bro. Erle Frayne Argonza

Good day!

How do water resources alleviate rural poverty? What methods of intervention can be cited, and how did such intervention schemes impact on poverty alleviation? Could corruption have served as a facet of such intervention programs in developing economies?

Below is a study regarding approaches to rural poverty alleviation in Asia.

[11August 2008, Quezon City, MetroManila]
========================================================
Approaches to rural poverty alleviation in developing Asia: role of water resourcesAuthors: Lipton,M.Produced by: Poverty Research Unit, Sussex (2008)

Focusing on water resources and irrigation, this paper documents a talk by Michael Lipton exploring approaches to poverty alleviation in developing Asia. The talk discusses the findings of a recent paper 'Pro-poor intervention strategies in irrigated agriculture in Asia: poverty in irrigated agriculture - realities, issues, and options with guidelines'. It looks at a number of topical issues such as irrigation in relation to access and global poverty, irrigation corruption, and sustainability.

The study discussed rests upon household surveys in 2001-2 in 26 major and medium canal irrigation systems (and adjoining rainfed areas) in India, Pakistan, Bangladesh, China, Indonesia and Vietnam. The surveys showed that in the rainfed areas, crop yields are typically half those in the adjoining irrigated areas, and that the landless in irrigated areas enjoy 'much higher' wage-rates and employment. Hence typically poverty incidence is 20-30 per cent higher in rainfed than adjoining canal-irrigated settings.

The speaker notes, however, that there are big differences, among and within systems, in irrigation's efficiency, equity, and thus poverty impact. He asks, what determines the cost-effectiveness of irrigation as a sustainable remedy for poverty (a) in irrigated areas, (b) by spreading to new areas?

Key points include:

• whether management of water for farming is pro-poor depends on its sustainable impact on growth, stability and distribution of consumption, and of other indicators of well-being
• the study gives strong evidence that more equal distribution of land and irrigation is not only pro-poor but also efficient
• changes in incentives and institutions alone can bring rapid progress in solving most major problems of Asian canal irrigation, improving its economic efficiency and poverty impact
• the main disincentive for aid to irrigation has been the growing doubt about side-effects: on health, on uncompensated land loss from new works (especially among indigenous populations), and on environmental sustainability
• we need to look at the results of this project to examine the causes of collapse in irrigation investment, and about cost-effective, pro-poor ways to remedy that collapse
  
• Available online at: http://www.eldis.org/cf/rdr/?doc=38021&em=310708&sub=enviro

US GENERAL: AFGHANISTAN’S A FAILURE, STRESSES DEVELOPMENT

Bro. Erle Frayne Argonza

Good day!

A retired US general recently spoke about the overall conduct of war in Afghanistan. To the surprise and chagrin of defense experts and officials, the general most candidly declared that Afghanistan was a disaster.

The retired general spoke more like a development expert than a uniformed defense official. Accordingly, there is no military solution to Afghanistan’s problems. The ideas proposed by the same (ret) uniformed official combine relief and rehab, infrastructures, and capacity-building efforts, or those solutions that have to do more with a total development package. This is a clear departure from the demented thinking in Pentagon and DC that tend to exacerbate the destructive facets of US engagements in Afghanistan.

Below is the news item about the (ret) official’s pronouncements.

[18 August 2008, Quezon City, MetroManila. Thanks to Executive Intelligence Review database news.]
================================================
McCaffrey: Afghanistan Disaster, Unless We Send in the Engineers

Aug. 7, 2008 (EIRNS)—Retired Gen. Barry McCaffrey, who often functions as an informal advisor to senior Army leadership on the current wars, reported on the disaster in Afghanistan following his July 21-26 trip to that country and to NATO headquarters in Belgium. In a memo dated July 30, addressed to the Social Sciences department at West Point, McCaffrey writes: "Afghanistan is in misery." Sixty-eight percent of the population has never known peace, life expectancy is only 44, and Afghanistan has the highest maternal death rate in the world, he reports. The security situation, the economy (including agriculture, which is "broken"), governance, and the opium problems, are "all likely to get worse in the coming 24 months."

There is no military solution, McCaffrey writes: "The atmosphere of terror cannot be countered mainly by military means. We cannot win through a war of attrition.... Afghanistan will not be solved by the addition of two or three more US combat brigades from our rapidly unraveling Army."

Instead, McCaffrey argues that, in addition to building up the Afghan security forces, economic measures are also required. He calls for the deployment of a "five battalion Army engineer brigade... to lead a five year road building effort employing Afghan contractors and training and mentoring Afghan engineers.... The war will be won when we fix the Afghan agricultural system which employs 82% of the population.... The war will be won when the international community demands the eradication of the opium and cannibis crops and robustly supports the development of alternative economic activity." McCaffrey pointed to the tremendous growth in the poppy crop since the US invasion in 2001 and warned that "Unless we deal head-on with this enormous cancer, we should have little expectation that our efforts in Afghanistan will not eventually come to ruin." On Pakistan, McCaffrey warns against a US military intervention in that country from across the border in Afghanistan, which he says "would be a political disaster. We will imperil the Pakistani government's ability to support our campaign. They may well stop our air and ground logistics access across Pakistan and place our entire NATO presence in severe jeopardy." In dealing with Pakistan, "We must do no harm..."

AID FUNDS FOR AFRICA, ANYONE?

Bro. Erle Frayne Argonza

Magandang araw! Good day!

Aid commitments to the south by the more developed economies of the North have been among the news trends recently. There is, for instance, the commitment of $25 Billion per year for the whole African continent, a commitment that hopefully won’t fly in the air as mere political promise.

A relevant news concerns IMF-World Bank actions about the matter.

[30 July 2008, Quezon City, MetroManila. Thanks to DevEx database news.

===============================
IMF, World Bank & IFI Round-UpLeaders of the Group of Eight rich nations are set to backtrack on their landmark pledge at the Gleneagles summit in 2005 to increase development aid to Africa to USD 25 billion a year. A draft communiqué obtained by the Financial Times, due to be issued at the group's July summit in Hokkaido, Japan, shows leaders will commit to fulfilling "our commitments on [development aid] made at Gleneagles" - but fails to cite the target of USD 25 billion annually by 2010. This goal - which was repeated at last year's G8 summit in Germany - was seen as an important boost for Africa. The ambitious plan was a cornerstone of former UK prime minister Tony Blair's G8 presidency and championed by his successor, Gordon Brown. Warning that rising food and oil prices pose a crisis for the world's poor, Robert B. Zoellick, the President of the World Bank, is calling on President Bush and other leaders convening in Japan next week for the G8 summit meeting to make new aid commitments to avert starvation and instability in dozens of countries. Zoellick's letter, obtained by NYT, came with a lengthy study of the impact of rising prices for food, fuel and commodities on the world's poor. Zoellick said in his letter that the World Bank, the International Monetary Fund (IMF) and the World Food Program (WPF) had short-term needs of USD 10 billion. Zoellick's letter calculates that, for the world's 41 poorest countries, the combined impact of high food, fuel and other commodities is a ‘negative shock' to their economies, reducing GDP by between 3 and 10 percent, causing ‘broken lives and stunted potential' for millions. The World Bank gave the go-ahead at a board meeting July 1 for the creation of a pair of global investment funds to back developing nations' efforts to curb greenhouse gas emissions and adapt to the effects of climate change. The Climate Investment Funds, led by Japan, Britain and the US and to be administered by the World Bank, are expected to start with total initial funds of USD 5 billion and become operational by the end of the year, it said. The approval of the Clean Technology Fund and Strategic Climate Fund comes days before a summit of G8 in Hokkaido, Japan, on July 8 where climate change issues are on the agenda. ‘The G8 is likely to broadly support the establishment of the climate investment funds,' Warren Evans, Director of the World Bank's environment department, told reporters. A new IMF study, looking at the impact of soaring oil and food costs, said many poor and developing countries will likely have to change their economic policies in response to soaring commodity prices, AFP reported. The IMF Food and Fuel Prices--Recent Developments, Macroeconomic Impact, and Policy Response report found that poor households are most affected by food price inflation and "warned that the share of undernourished (people) in developing countries could rise rapidly above the current 40 percent of total population." Energy and food values are still rising and the IMF said its research suggests the "problem is worsening." The World Bank's private sector arm has launched a new fund it hopes will unlock as much as USD 5 billion in infrastructure investment for the world's poorest countries. As part of its drive to reach deeper into some of the most forbidding markets, the International Finance Corporation (IFC) will use a pot of USD 100 million to cover the initial costs of power, logistics, and transport, ports and communications projects. Once a project is shown to be viable, it will be tendered to other investors, the Financial Times (UK) reported. Working with an initial partner, the IFC fund - known as InfraVentures - will cover start-up costs such as feasibility studies and legal fees. Half of its resources will be devoted to sub-Saharan Africa, with the remainder spread across Latin America and Asia.

RE-ECHOING ROOSEVELT’S ‘PHYSICAL ECONOMY’ SOLUTIONS TO GLOBAL FINANCIAL COLLAPSE

Bro. Erle Frayne Argonza y Delago

My beloved country remembers the late Franklin Delano Roosevelt very well. It was his presidency that paved the way for preparing the Philippines as an independent state, by first granting the country the status of a commonwealth with its own constitution (1935 Constitution), and by permitting such domestic government to prepare the legislative measures and policy environment for a future independent state (granted independence in 1946).

Roosevelt’s regime also paved the way for the developmental paradigm that would propel the Philippines along the road to industrialization (we now term this as Import-Substitution Industrialization). The paradigm, based on the works of previous thinkers Alexander Hamilton, Friedrich von List, and the exemplar development policies of Abraham Lincoln, puts great stress on the ‘physical economy’ as the foundation for a prosperous and mighty economy in the long run.

Roosevelt further went on to cogitate that colonialism should fold up after the war, and that all former colonies must follow the road to development and prosperity, this being the road to genuine international peace and cooperation. The international doctrine of Roosevelt became the foundation for post-war cooperation, and buttressed the founding of the Bretton Woods agencies whose mandates were propelled precisely by the physical economy framework, the need for undertaking development in the former colonies, and the need to regulate national currencies via fixed exchange rate backed by the gold standard.

The current circumstance is now too remote from the ‘physical economy’ policy regime of the post-war era. Economic liberalization policies led to globalization and the galvanization of the ‘virtual economy’ based on predatory finance. The ‘virtual economy’ had led to de-industrialization, agricultural decay, decline of S&T, and deteriorating infrastructures in the most affected economies, and had fragmented developing states into ‘failed states’.

The global financial system created by the relentless liberalization of financial, fiscal and monetary policies across borders, had already collapsed and is beyond salvation using the present intervention tools that now seem to be burnt out tools altogether. A global conference must be convened most urgently to carve out a new financial architecture based on a ‘physical economy’ framework, and to decisively criminalize predatory finance.

Below is a press release of relevant notes on the global financial collapse, by the economist Lyndon LaRouche.

[27 July 2008, Quezon City, Metromanila. Thanks to the Executive Intelligence Review database news.]

===========================================
LaRouche: Financial System Is Dead, Cannot Be Saved
July 13, 2008 (EIRNS)—This release was issued today by the Lyndon LaRouche Political Action Committee (LPAC).

With the U.S. and British financial press full of wild speculation about how the Bush Administration is going to intervene Monday morning, to bail out Fannie Mae and Freddie Mac, Lyndon LaRouche today issued a sharp, preemptive warning: "The financial system is already dead. It cannot be saved."

LaRouche expanded: "If any of the reports of a planned bailout of the two big mortgage lenders, by the Treasury Department or the Federal Reserve are true, I say, 'Forget it.' Any such efforts to delay the funeral of the present global financial and monetary system will only make matters worse. A bailout will cause an accelerated hyperinflationary explosion, far worse than the hyperinflation that hit Weimar Germany in the autumn of 1923. Back then," LaRouche continued, "Germany had a gun pointed to its head. The gun was called the Versailles Treaty, and Germany had no choice. Today, the United States has a choice. I spelled out the choice in numerous recent locations."

LaRouche cited his recent call for the Federal Reserve to immediately raise interest rates to 4 percent, as a stop-gap measure to prevent a massive flight of institutional capital from the banking system. He demanded that this move be accompanied by clear statements from the Fed that there will be no more Bear Stearns-style bailouts of the speculative bubble. Instead, the Fed will protect the chartered Federal and state banks, through bankruptcy reorganization, on the model of what Franklin Roosevelt did, when he first took office in March 1933, and faced the same kind of collapse of the banking system that we face now. "Only, today's crisis is orders of magnitude worse," LaRouche added, "due to the massive leveraging by the banks and other financial institutions."

LaRouche warned that Bush Administration and Fed officials, like Hank Paulson and Ben Bernanke, may be on an "ego trip—unwilling to admit that they have failed miserably. But the reality is that they, like the George W. Bush Administration, have failed, with wretched incompetence. For one thing, they failed to reverse the Alan Greenspan monster bubble, which is now blowing."

LaRouche added that there is no way to even estimate the magnitude of the financial bubble, that has now blown. "The collapse of Fannie and Freddie means the end of the system. And that has already happened, and nothing can be done, within the rules of the current system, to solve that problem. We can keep Fannie Mae and Freddie Mac alive, but only through actions reforming the system, in terms echoing the precedents of President Franklin Roosevelt, that in ways appropiate for the actual conditions of today.

"The only alternative is to implement my three-step solution to the crisis," LaRouche concluded. "If the so-called leadership in Washington is unwilling to do that, then this financial system, and, by extension, these United States, are finished. It may be a tough reality to swallow, but it is the only reality that there is."

Lyndon LaRouche will be delivering an international webcast on Tuesday, July 22, 2008, at 1:00 p.m. (EDT). The webcast takes place on the first anniversary of LaRouche's July 25, 2007 Washington, D.C. webcast address, in which he announced that the financial system had already crashed. Days later, the collapse of Countrywide, and other major mortgage lenders, and the blowout of Bear Stearns, illustrated that LaRouche was 100% correct.

US WATCH: TRANSPORT U.S. BACK TO PROSPERITY

Erle Frayne Argonza y Delago

The final feature of the US ‘real economy’ worth featuring is transportation & communications. This is among the most productive sectors that produce real wealth, contrasted to the ‘casino economy’ of predatory finance that produces wealth from out of wealth itself, producing really nothing worth our value. Broad as it is, let me focus on the transport sector.

Time was when the railway industry took off, inducing growth as soon as the railways hit the West. The continental divide among the US states was bridged quickly, intra-trade exponentially increased. Soon enough, foreign trade also increased in leaps and bounds as maritime shipping grew and matured quickly, making US articles of trade be exported to all corners of the planet.

Trains, ships, airplanes, automotives, trucks, heavy equipment, tractors, and other state-of-the art prototypes came out of America’s workshops to propel growth not only in the US but in other countries as well. “Made in the USA” products became household words everywhere, including my Wild Wild West province of Cagayan in Northern Philippines, precisely due to the miracle of the transport sector that was broadly a facet of the ‘real economy’ of America. I was a child in the 1960s and early 70s when the “Made in the USA” was chic and almost a cult-level cliché.

That era now is now consigned to the dustbins of a remote past. Sure, America still produces state-of-the art transport prototypes. But look, railways have stagnated (is there a mag-lev there now?), automotives are shrinking by the day (laying off and displacing thousands of top quality industrial technicians), while the cutting edge technology for almost all prototypes, save for military transport, have already been surpassed by Asia.

McCain and Obama should better do their homework and understand the catastrophic future that awaits America if the transport sector remains neglected and ceaselessly ravaged inch-by-inch by the infernal fires of predatory finance. The policy makers there better salve the ailing sector quickly, and get back those laid-off topnotch industrial technicians to work before they lose every iota of motivation to even get involved in the sector they grew up with but which rejected them (how traumatic!).

If there’s any sector to begin with, it’s railways. Better renovate the railways, and establish maglevs in all the major continental routes of the US. And quickly take the initiative to establish cross-border maglevs with Canada and Mexico. Later, establish maglevs connecting Alaska with Russia via Siberia, thus connecting US to the Asian land mass.

Sorry for sounding ‘interventionist’, fellows in America. We Asians are as concerned with your economy as you are, and we would want your economic leadership to again rise to the fore. If America does that, other nations will then move on, propelled by growth in the ‘real economy’ because America is doing so. Failing to do that, the economic baton will transfer to Asia, and it will crash our hearts to see our fellow Earthans of America sinking in esteem by the day, because of their collapsing prosperity.

We are all siblings on Earth, this is certain, that’s why we share words of wisdom about your economic conditions. May you finally have a reform-oriented President comes this coming electoral contest.

[Writ 07 June 2008, Quezon City, MetroManila]

US WATCH: INFRASTRUCTURE DECAY, NEEDS MASSIVE REDEVELOPMENT

Bro. Erle Frayne Argonza

A bridge has fallen, the Mississipi river flooded Orleans like some pathetic third world city, airports are too cramped up as they are incapable of containing the surge in passenger & cargo levels, the East Coast experienced the emergency shut down due to grid overload (causing massive blackout), railway tracks are thinning out and overall capacity is on downward trend, and more.

They seem to be unrelated, but for economists and sociologists the trends all tell the same story. Pieced up together, they indicate crumbling infrastructures. Not because the structural engineers of America are sloppy, and definitely not that the heavy equipment sector couldn’t provide quality machines to reinforce the burgeoning infrastructure need of the juggernaut US economy.

The true story is that, as the economy shifted to the ‘virtual economy’, there was the systematic abandonment of infrastructure as a priority for fiscal and budgetary allocations. “Leave that to the private sector!” was the slogan for infrastructure. Even the famed fast lanes of America are already being sold out one after the other to the highest bidders, financial speculators all led by the likes of Felix Rohatyn & partners, thanks to deregulation and liberalization.

The thing is, most of America’s major infrastructures—airports, wharfs, roads, bridges, dikes, dams, power distribution, and more public works—were built in the 50s and 60s yet, at the height of the post-war boom under the aegis of the New Deal. Such infrastructures now require massive renovation, with entire replacement for those decaying beyond salvaging.

Did the civil engineers of America speak about the matter clearly? They did, and they have been saying alarming things since the 1990s yet. At the height of the ‘bridge over troubled water’ fiasco, they came out with the report that ¼ of America’s roads and bridges needed major repairs and replacements as soon as possible.

The other sectors’ experts have spoken as well. In the airlines industry, no less than state officials have forewarned that if no renovations (toward expansion) will be done on airports in 10 years’ time, there will be major crisis in the airlines sector. The possibility of emerging markets overshooting the USA’s cutting edge in air transport delivery also looms ahead in the short run.

With no reversal of policies in sight, chances are that, in 20 years’ time, the USA will be an apocalyptic landscape of fallen bridges, impassable roads, rotten wharfs, fallen dikes and inoperable dams, rotten buildings left to nature, and forest cover claiming back once bustling cities.

Only a timely policy reversal can nip the apocalyptic future in the bud. That is, if the political bigwigs in the coming election—McCain and Obama—do their homework well, comprehend the problem deeply, and begin large-scale strategic solutions to colossal problems in infrastructures.

[Writ 06 June 2008, Quezon City, MetroManila.]