Shocking figures

© R. Mshana, WCC- JPCSeong-Won Park, WARCLayout - LSM July 2004Photo: Photo Oikoumene

Mother Earth mourns

God’s Creation is groaning in pain and in agony, longing to be set free.Along are the cries of victims both north and south whose livelihoods, land, rivers, forest resources, ancestral rights, traditions, culture are threatened and the life support system is destroyed,These shocking figures are urging us to take action today.

Distribution of world population in 2001

Ex-Soviet6%Triad

14%

ThirdWorld80%

Source: IMF, World Economic Outlook, 2002 © R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

The annual income of the richest 1% of the world’s population is equivalent to that of the poorest 57 % of the planet.

28,400

1,900 1,300

0

10,000

20,000

30,000

Triad Ex-soviet block Third World

GDP per inhabitant (in $)

Source: Forbes 2002 © R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

The rich become richer and the poor become poorer.

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

Furthermore, the income of the richest 5% of people in the world is 114 times higher than that of the poorest 5 %

Income of the richest 5% Income of the poorest 5%

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

Comparison between the wealth of the world’s 497 billionaires and the annual sums required to fulfil basic human needs

1544.2

80

0

600

1200

1800

Wealth of the world's 497billionaires in 2001

Annual sums req. to fulfilbasic human needs

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

The Champagne Glass Economy

Top 20 %

Next 20 %

Bottom 60 %

83 % of the world’s wealth

11 % of the world’s wealth

6 % of the world’s wealth

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

Income inequality has increased both within nations and between nations.

This scenario leads to violence and economic refugees.

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

The scandal continues...

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

From 1982 to 1990

The South received

$927 billion in aid, grants, trade credits,

direct private investment, and loans…

The South paid out

$1.3 trillion in interest and principal

(not including royalties, dividends, repatriated capital, and underpriced raw materials)…

…Yet in 1990, the South was

61 percent deeper in debt than it was in 1982.

Transfer of Resources South North

$927Billion

$1.3Trillion

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

The scandal continues unabated.

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

Net transfer of financial resources to rich countries(Billion USD)

Source: Social Watch - Germany 2003© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

-200

-150

-100

-50

0

50

1997 1998 1999 2000 2001

Africa

Eastern andSouthern Asia

Western Asia

Latin America

All DevelopingCountries

1460

700

310230

80 30

410

12050

30

430

160 180 130

0

400

800

1200

1600

DC

Latin

Am

erica

Sub-S

ahar

an A

frica

Midd

le Eas

t

South

Asia

East A

sia

Form

er S

oviet

Bloc

Deposits of funds from DC in banks of richcountriesDeveloping countries debt towards thesebanks

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

DC deposits in banks of highly industrialized countries compared to DC debts to same (Billion USD)

Source: BIS 2003

Southern wealth that is residing in the North must be sent back. Because most of it is illegitimate.

Poor countries’ debt must be cancelled immediately.

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

Inflows of Foreign Direct Investment in Developing Countries 1985 - 2002

0

20

40

60

80

100

120

140

160

85

- 8

7

88

- 9

0

91

- 9

3

94

- 9

5

96

- 9

7

98

- 9

9

20

00

- 2

00

1

20

02

Africa

Asia and thePacific

Central andEastern Europe

Latin Americaand theCaribbean

(In USD billions)

Sources: UNCTAD, Handbook of Statistics 2002 andUNCTAD, World Investment Report 2003

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

Globalization gives more wealth and power to corporations becoming stronger than nations. They use cheap labor in the South and unemploy people in the North.

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

Transnational Corporations:

Large, and Getting Larger

49 arenations... and 51 are

corporations

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

Of the world’s 100largest economies...

Source: Institute for Policy Studies, The Top 200, 1996

The human dignity and the dignity of the earth are violated.

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

Photo: http://philip.greenspun.com/

How Africa is exploited by TNCs with the higher rates of Capital Returns than those they realize in Developed Countries

0

50

100

150

200

250

300

1995 1996 1997 1998

Average in Africa

Mozambique

Guinea Conakry

Angola

Niger

Sierra Leone

(Standard rate of return is normally 15 %)

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

Who Benefits from World Exports as World Trade is Liberalized?

Source: The Economist, Nov. 11th, 2000, p. 110

1993 USA15 %

EU34.7 %

Rest of the World49.6 %

1999

Rest of the World44.3 %

EU38 %

USA17.7 %

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

TRIPS favour rich countriesOver 75 % of Trade Related Intellectual Property Rights is in rich countries.

US$ billion change in patent royalties once TRIPS is fully enforced

0 5 10 15 20

United States

Germany

Japan

France

UK

Switzerland

Australia

Netherlands

TRIPS - Trade Related Intellectual Property Rights© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

Without substantial change, poor countries will continue to loose out in trade.

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

What is the voting power in the IFIs?

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

International Monetary Fund (IMF)Voting power:17.4 % USA. The African blocks of states have 4.5 % of voting rights.

World BankVoting power:16.5 % USA, Japan 7.9 %, Germany 4.5 %, UK 4.3%, France 4.3%. India, with 16 % of the world'spopulation has under 3 % votes.

Ecological destruction

EnvironmentEcological Debt Per Capita Emissions of Selected Countries (1996)

0.01

0.05

0.2

0.25

0.29

0.3

0.33

1.34

1.69

1.92

2.54

2.59

2.72

2.87

3.76

5.37

0 1 2 3 4 5 6

Ethiopia

Bangladesh

Nigeria

Philippines

India

Peru

Indonesia

WORLD AVERAGE

France

Italy

Japan

U.K.

Netherlands

Germany

Canada

USA

(metric tones of carbon)

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

Environment Carbon Debt Estimates of Compensation due to Carbon Creditors

$18,403

$4,036

$2,821

$1,810

$1,340

$1,330$1,204

USAJapanGermanyUKCanadaItalyFrance

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

(US$20 per ton, figures in USD millions)

Total G7 carbon debt = US$30.9 billion

The G-7 carbon debt could be higher than this annual estimate. Instead of the South paying to the North, the reverse should be the case.

Vanishing species

1850 - 1950: 1 animal species per year

1989: 1 per day2000: 1 per hour

Within 50 years, 25% of animal and plant species will vanish due to global warming.

Source: Prof. John Van KlineknGroningen University, Germany

© R. Mshana, WCC- JPCSeong-Won Park, WARC

July 2004

““If we continue down the path If we continue down the path

we are going, we are going,

we will produce changes we will produce changes

greater than any experiencedgreater than any experienced

in the past 300 million years.”in the past 300 million years.”

Caldeira, Lawrence LivermoreCaldeira, Lawrence LivermoreNational LaboratoryNational Laboratory

““I am more worried about I am more worried about

global warming global warming

than I am of than I am of

any major military conflict.”any major military conflict.”

Hans Blix,Hans Blix,UN Chief Weapons InspectorUN Chief Weapons Inspector

j“Global Warming is a weapon of

mass destruction.”Sir John

Houghton