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Vol. 1, No. 9 - October, 1999
A monthly electronic newsletter
on environmental and social aspects
of the Euro-Med Partnership / MFTZ
Produced by Friends of the Earth Middle East in co-operation with Friends of the Earth Europe
Contributions to the Monitor are welcome. Please send
by 15th of each month to mftz@gmx.net
___________________________________________________________________________________
CONTENTS
EURO-MED
WATER MINISTERS MEET IN TURIN
NGOS CALL FOR HIGHER PROFILE
FOR WATER ISSUES IN EURO-MED PARTNERSHIP
Ministers and other high-ranking officials responsible for the water sector in the Euro-Med Partner countries met in Turin, Italy to adopt a Plan of Action for regional co-operation in water management. An official declaration by attendees, reaffirmed commitments stressing the importance of water in the region, including the Mediterranean Charter for Water (signed in Rome 1992), the Barcelona Declaration, SMAP, and the Declaration of the 3rd Euro-Med Ministerial Conference, held last April. The action plan promotes six priority fields for cooperation, including, among others, integrated management of local drinking water supply and sanitation, combating drought, and use of non-conventional water resources.
The meetings were reportedly very tense, with the main subject of controversy being the insistence by some countries, notably Syria, to introduce basin-wide management according to the Helsinki agreement into all international waterways. Predictably, this led to fierce opposition by states whose water supply could be threatened by such measures, notably Turkey, Israel, and Egypt. In the end, the subject was not included in the joint statement.
NGOs commented that while the initiative of a ministerial-level dialogue was appreciated, still much work remained to be done in order to protect the region’s rapidly diminishing and deteriorating water resources. A declaration by Mediterranean NGOs called for the Ministers to “make sure that water issues have proper visibility at all levels of the Euro-Med cooperation; [and to] make sure that poor and marginal communities of the basin are not left to the mercy of profit driven water suppliers to get their basic water requirements…”
Regarding the impact of the Mediterranean Free Trade Zone (MFTZ) on the region’s water supplies, the declaration stated, “that the process of trade liberalization within the Euro-Mediteranean region is leading to increased production, transport, consumption, and disposal of goods which translates directly into increasing the demand of the limited water resources and increases the potential of their quality deterioration through the production of various pollutants.”
Recommendations of the NGOs included ensuring that a strong priority be placed on water for the environment, people and food in the MEDA II Programme (2000-2006) (see MEDA article below) including stating defined targets, and ensuring that water issues have proper visibility at all levels of the Euro-Med cooperation.
A copy of the NGO declaration is available on-line at www.foeme.org/mftz/turin.htm
AN “ORDINARY
MEETING” OF BARCELONA CONVENTION CONTRACTING PARTIES
From the 27th to the 30th October
the contracting parties to the Barcelona Convention for the Protection
of the Mediterranean Sea met to evaluate progress in implementing Conventions
goals and to approve the activities and budget of the Mediterranean Action
Plan (MAP) for the coming two years.
Minister of Environment for Malta Mr. Francis Zammit Dimech opened the meeting with the pledge of Malta to ratify the amendment to the convention and all its protocols with the expressed desire that other contracting parties would follow suit. Though the meeting was termed an “ordinary meeting” the Minister hoped that an extraordinary meeting would be held if most governments would commit themselves to ratification during their presentations. To the great disappointment of the Maltese Minister and all the NGOs present, only Italy and the European Union made any commitments to ratify further protocols to the Convention. Nevertheless the meeting did go on to elect a new Bureau, which is a 6 member executive body to the convention. Malta, Libya, Cyprus, Italy, France and Syria were elected to the Bureau for a two year term.
Many NGOs were present as observers, and all expressed their dissatisfaction with the lack of support for the Barcelona Convention and its protocols at the national level. Friends of the Earth Mednet, representing a network of NGOs throughout the Mediterranean region, described the so called “Ordinary Meeting” as an all-too-ordinary expression of a clear lack of commitment by the vast majority of the contracting parties to meet their obligations under the Convention, which all signed. All NGOs called for the contracting parties to ratify the Convention and all of its protocols. Currently, the only country to have ratified all protocols is Tunisia.
France and the European Union delegates both expressed concern that not enough attention was being paid by the contracting parties to the Euro-Mediterranean Partnership and in particular what the proposed Mediterranean Free Trade Zone might mean regarding both to increased pollution levels and to financial resources available to combat this.
EUROPEAN
COMMISSION PROPOSES FINANCING UNDER MEDA II PROGRAMME:
FOCUS TO BE ON FREE TRADE
AREA
In a recent communication to the Council of Ministers, the European Parliament and the Court of Auditors, the European Commission proposed to revise the regulation on "financial and technical measures in the context of Euro-Mediterranean partnership" (MEDA). The MEDA programme includes EU financing in the 12 Southern Mediterranean partner countries taking part in the Barcelona Process (see MFTZ Environment Monitor, Sept.1999). The Commission has expressed that the arrangements and the criteria for granting credits must be changed after being operational for over three years (1995-1999).
In presenting proposal for MEDA II, External Relations Commissioner Chris Patten said that “the EU’s relation with our Mediterranean partners are now becoming closer than ever before and the way MEDA II works needs to reflect that. This proposal is a response to the need to maximise the impact of EU financial assistance on the basis of sound procedures.“
The Commission proposes to focus financing on aid to the implementation of association agreements, which prepare for the establishment of the Mediterranean Free Trade Zone by the year 2010.
There are already association agreements comprising customs unions with Turkey, Malta and Cyprus. Association agreements have been signed with Morocco, Tunisia, Israel, Jordan and the Palestinian Authority, and negotiations are under way with Algeria, Egypt, Lebanon and Syria. The "structural adjustment facility" will specifically aim at promoting the economic reforms needed in the Southern Mediterranean countries to establish a free trade area with the EU.
In addition, procedure and selection of criteria for financing will be reformed. The Commission proposes to not submit any proposals of individual projects to the "Med Committee" anymore, but to submit
indicative programmes and annual financing plans. Other measures include substituting the regulatory committee with a management committee and improving coordination with the EIB (European Investment Bank).
Simplifying theprocedure and getting funds out at a quicker pace is a much needed improvement. Focusing more on the building of the free trade area, however, seems to risk that other sectors might get neglected, such as support in the area of environmental protection, education and health.
Under MEDA I (Euro 4.685 billion during 1995-1999) the MED committee gave a favourable opinion to grant 6 million Euro for the Short and Medium Term Action Programme on the Environment (SMAP). SMAP is to support six projects that aim to consolidate ties among NGOs, the private sector and public institutions for sustainable development in the region. In addition, two energy projects (nearly 4 million), and a Palestine infrastructure project (6 million) were granted.
The MEDA II communication will be discussed at the upcoming EU finance ministers meeting on November 15.
TROUBLING QUESTIONS ABOUT COMPANIES VS. PEOPLE’S RIGHTS RAISED AFTER UTILITY FEUD LEAVES ALGERIAN RESIDENTS HIGH AND DRY
Residents of the Um al-Dorooa’ municipality in the Al-Shalf district of Algeria, had their water supplies cut off after the Sonalgas Corporation disconnected electricity supply to the National Water Company, claiming that the Water Company did not fulfill its financial obligations. Unable to obtain water from the local sources, local residents were forced to pay up to AD 600 (over US$9) per container of water. Moreover, the containers are said to have been contaminated, as the water utilized was intended for irrigation rather than human consumption, and was not treated with the necessary chemicals.
The incident raises serious questions as to rights of private companies versus those of individual citizens. With the increase in privatisation and economic liberalisation throughout the region – measures encouraged under the Euro-Med Partnership (see following article) - nations are relinquishing more and more control over utilities and basic resources to the private sector. In fact, according to reports in Al-Ahram “42 per cent of privatisation proceeds in developing and transition countries come from infrastructure investments…[however] infrastructure privatisation has so far played a far less prominent role than in other regions.”
That said, according to the 1999 Annual Report of the International Finance Corporation (IFC), "demands on infrastructure, strained by rapid population growth and urbanisation, are considerable…More than $350 billion in construction funds will be needed in the Middle East and North Africa over the next 10 years. With treasuries stretched thin, some countries have begun to open their economies to private investment in infrastructure." Morocco, for instance, is among the leaders in the Mediterranean region in privatising national infrastructure. Private sector companies currently provided power for two cities, and have concession contracts for water supply in Rabat and Casablanca.
Establishment of legal mechanisms in order to protect private sector interests in order to promote economic stability and attract investment is a policy advanced under the Euro-Med Partnership. While investments are then well protected, the same is not necessarily true for ordinary citizens who may depend on the corporations for essential services.
Concern over just such an event as the cessation of water
delivery in Algeria has led several citizens organisations to call for
basic laws guaranteeing provision of basic needs. These services, according
to the civil society representatives, need to be provided irrespective
of corporate revenue interests, and stipulation of such needs to be included
in contracts with contractors, both public and private sector, which administer
such services (see for example Water article above). Essential goods
and services, such as provision of water or electricity to hospitals, cannot
be held hostage to corporate balance sheets, nor to corporate legal or
financial disputes, the groups claim.
(Sources: MidEast Business, Al-Ahram Weekly various
issues, IFC Annual Report)
EGYPT SETS
SITES ON PRIVATE SECTOR LED ECONOMY
PROMISES COMPROMISE POLICY
ON SOCIAL CONCERNS
Egyptian Foreign Minister Amr Moussa is quoted as having stated "In Egypt, our vision is clear. We are determined to make economic reform, liberalisation and private sector leadership the foundations of Egypt's economic future." President Mubarak’s recent appointment of Atef Ebeid, regarded as the father of Egypt’s privatisation process, as Prime Minister is meant to demonstrate to the international community the top leadership’s commitment to integrating into the world economy. Other Egyptian figures are also on board. National Bank of Egypt Chairman Mahmoud Abdel-Aziz, for instance, is a vocal advocate of privatisation of the Bank.
Egypt is also hosts its first private power generating plant along the north coast – a project which has already utilized $200 million in IFC loans, and the government just announced the signing of an 850 million Euro contract with Electricite de France to build and operate two new power stations in Egypt (see News In Brief below). In addition, the government is currently considering privatisation bids from private and public sector firms for twelve major state-owned companies worth an estimated LE2.8 billion (US$823 million). In total, Egypt has reduced the public sector's share of GDP by more than 40 per cent, with the private sector now accounting for nearly 70 per cent of GDP.
Economic liberalisation, however, is hotly debated in Egypt. This is especially true in the case of services, currently dominated by public monopolies. The need to use these services, including port facilities and other infrastructure, is blamed for making Egyptian products not competitive in world markets. Government control of these services, however, gives it command over a significant source of jobs and revenues.
In an effort to attempt to ease some of the social concerns regarding the accelerated pace of economic liberalization, the Ministry of Social Affairs and Insurance organised a national conference on social reform. The Minister of Social Affairs and Insurance, Mervat Tellawi, is quoted as saying that Egypt would seek a "third way" between socialism and capitalism that acknowledges social responsibility and the necessity of the business world to consider social causes.
Representatives of social and academic institutes welcomed
the initiative to consider social reform in addition to the current governmental
focus on economic reform, noting a deterioration quality of social services.
Some observers questioned, however, whether the government even had clear
notions of what the root sources of the social issues facing the nation
were and what methods if any were available for addressing them.
(Sources: Al-Akhram Weekly various issues)
EU REPORT ESTIMATES MOROCCO UNLIKELY TO BE READY FOR MFTZ
A report by European Union trade counsellors presented to the Council of Ministers concluded that despite some advances by Morocco in terms of economic liberalisation, it is still unlikely that the nation will be able to meet the criteria necessary for participating in a Mediterranean Free Trade Zone. Morocco has been hailed by many analysts as an economic success story due to its stable currency, low inflation, and positive balance of payments. It is criticised in the report, however, for having overwhelming governmental administrative operating costs, amounting to 50% of the national budget, as well as both regulatory and financial systems which offer little incentive for innovation and investment. It did note that Morocco has made considerable progress in the area of customs reform and establishing trade relations with other Mediterranean nations.
The report notes that the Kingdom is also not competitive in terms of human resources and technological development. Morocco has a dismal rating according to the UNDP Human Development Index (intended to reflect overall development levels) – the lowest of all Mediterranean countries – reflecting serious social problems including lack of education, health services, and employment for large segmenof the population. The nation’s HDI index has actually dropped considerably as Morocco has liberalised its economy. With continued high birthrates and without a coherent social policy, these problems are expected to worsen.
Despite this trend, Morocco is hoping that progressive
economic liberalisation and increased ties with the EU, its major trading
partner, will help offer economic opportunities. Already over 200 million
Euro worth of aid for funds for structural adjustment and for the development
of the private sector have been made available to Morocco through the Euro-Med’s
MEDA programme, as well as additional non-MEDA funding. The report cautions
the government of Morocco, however, from relying on the funding, which,
it states, is meant to be complementary to sound governmental economic
policy, currently lacking.
(Sources: European Report 1999, UNDP Human Development
Report 1998)
NATURAL
GAS TO OVERTAKE OIL WITHIN 20 YEARS
MED COUNTRIES TRY TO STAY
ON TOP OF TREND
Attendees at the 5th annual Middle East gas summit held in Beirut in October concluded that natural gas will be a more popular source of energy than oil by the year 2020. According to OPEC projections, global demand for gas will rise by 2.5% per year over the next two decades, while oil should grow roughly 1.2. It is expected that almost half of all consumption of natural gas in 2020 will be by Europe and the US. Several Mediterranean and Mid-East countries are expected to actively promote private sector development of natural gas fields as integral parts of their economic development plans.
In related developments:
Turkish Energy
Ministry Delays Nuclear Plans
The Turkish Ministry of Energy requested a delay in announcing
a governmental decision regarding bids by international consortia to build
a nuclear power plant at Akkuyu along the Mediterranean coast. According
to reports, the companies bidding for the tender agreed to a request by
the Turkish power authority TEAS to delay its decision - originally scheduled
to be announced in October - until the end of the year. The consoritia
include American, Canadian, and a French-German companies.
Minister of Energy Cumhur Ersumer is strongly in favor of Turkey developing a nuclear energy supply program, while local residents, environmentalists and a number of politicians are against it, siting health risks, routine lack of enforcement of building regulations, and the site’s location on an active seismic fault.
Austrian
Nuclear Energy Fears Hold Up EU Accession Talks
Meanwhile, in discussions between current European Union
members and the six countries currently seeking fast track admission to
the EU, Austria vetoed the start of talks on energy. The Austrians demanded
guarantees of high standards and technology for the nuclear facilities
in the countries seeking EU accession. Austria also threatened to block
the EU candidacy of Slovakia at a December EU summit should Slovakia fail
to move up the closure of its Bohunice nuclear plant, currently scheduled
to operate until 2008. This is seen as the first major setback in accession
negotiations, and non-nuclear countries such as Cyprus and Poland were
reportedly notably distressed that such issues, which are relevant only
to a few countries, could hold up negotiations for all candidates. Soon
after these threats, Lithuania, the world’s most nuclear dependent country,
announced plans to close one of its nuclear facilities by 2005, and is
considering closing another by 2009 in compliance with EU pressure.
(Sources: Reuters, various articles)
GREENPEACE RAINBOW WARRIOR CAUSES STIR ON MED TOXIC TOUR
The Greenpeace ship, the Rainbow Warrior, made a tour of the Mediterranean region during the month of October in order to highlight continued environmental threats to the Mediterranean Sea from unsustainable development. The “toxic tour”, as it was called by Greenpeace, was made in anticipation of the meeting of the Contracting Parties to the Barcelona Convention in Malta (See MAP article above). Coincidently, Malta is also the location of the head office of Greenpeace Mediterranean, the regional coordination office covering the organisations non-EU Mediterranean branches.
The tour highlighted violations of commitments under the Barcelona Conventions to restrict land-based sources of pollution. In Lebanon, Greenpeace protests against the Lebanese Chemical Company (LCC),
Lebanon’s major polluter according to the organisation, turned violent as activists and members of the media attempting to cover the protests were attacked by police and private guards using live fire. Two acitivists were reportedly wounded badly. Activists claimed that LCC was dumping high levels acid and other hazardous industrial wastes directly into the sea, according to samples taken by the activists and analysed in Greenpeace’s laboratories in the UK. The activists called on the government of Lebanon to investigate the company’s environmental practices and to ratify and implement the Barcelona Convention.
Other stops in the tour included calls by activists in Cyprus to protect Akamas Peninsula, and by activists in Turkey calling on the government to abandon plans for construction of nuclear plant (see previous article). Protests were also held against illegal dumping of toxics in the Mediterranean, including organo-chlorines by Electro-chemicals Industries in Israel and dioxin laden wastes by steel companies in the Aspropirgos industrial area in Greece.
Greenpeace, along with several other environmental NGOs, is demanding that the countries of the Mediterranean ratify the Barcelona Convention and all of its protocols. It accuses countries of deliberately dragging their feet in terms of ratification, thus leading to the rapid deterioration of the Sea ecology. (Sources: Greenpeace Mediterranean press releases)
WTO SEATTLE MINISTERIAL LOOMS ON HORIZON
WTO Report
Recognises Trade Can Harm Environment
The World Trade Organisation issued a Study on Trade
and Environment in mid October. In contrast to most earlier WTO communication
on the issue, which tended to elaborate only on the positive and complementary
environmental aspects of trade, this report mentions that the global trade
system does, at times, defeat environmental standards, fail to internalise
external costs, grant subsidies to polluting and resource degrading activities
in such fields as energy, agriculture and fishing, and increases further
pollution due to greater transport.
Environmental NGOs welcomed the step made by the WTO, but stated that the study did not go nearly far enough. It does not analyse, negative environmental implications of the WTO’s existing agreements and procedures, for instance, nor, how they need to be revised in order not to pose a threat to sustainable
livelihoods and the protection of the environment. In particular, it fails to provide sustainable policy recommendations on such issues as the uncertain status of Multilateral Environmental Agreements, recent dispute settlement panel decisions on bananas and hormone treated beef, agriculture and trade related intellectual property rights, and regulating the trade and use of Genetically Modified Organisms.
A copy of the Study is available on the internet, http: //www.wto.org
EU-Sponsors
Sustainability Impact Assessment of WTO New Trade Round
The European Commission invited NGOs, business interest
groups and Member StatRepresentatives to a public consultation meeting
on the Sustainability Impact Assessment (SIA) of the New Trade Round of
the WTO. The EC has agreed to conduct such a study as it pushes for a comprehensive
new round. The Contractors of the Study from the University of Manchester
presented the Phase One Report, which gives details of the methodology
to be used in the Assessment of the New Trade Round. The Phase One Report
contains a useful examination of current literature on impact assessments
of trade liberalisation and a survey of cases in which these methodologies
have been applied.
According to Friends of the Earth Europe, however, the on-going EC initiative has several shortcomings. First of all, its mandate is to examine only the future possible impacts of a new round, and as such, it does not intend to properly assess negative environmental implications of already existing WTO rules and agreements. Secondly, it does not address the need for equal access rights to resources and resource use within the limits of global carrying capacity. Furthermore it is unclear how, if at all, the study will address controversial issues such as biotechnology and forest products – issues that are on the US agenda for inclusion in a New Round – but are not mentioned in the SIA.
A final report is to be finalised by mid-November, only two weeks before World Trade talks start in Seattle. The EC already has set stated its strong desire for a new round of trade negotiations to include controversial issues, such as investment, competition and government procurement. Many NGOs have stated that the time-frame allotted for the study was far too short to produce an accurate assessment, and that, in any case, the results of the assessment, whatever they may turn out to be, are unlikely to influence the EC position.
The First Phase Report of the Sustainability Impact Assessment is available on the web page, http://fs2.idpm.man.ac.uk/sia/.
A Masters degree program in Euro-Mediterranean Partnership
Studies is open at the Scuola Superiore and the Jean Monnet Centre of the
University of Catania. The program is multidisciplinary and consists of
lectures, teacher-students contact, and a work placement period. Full scholarships
are available.
For information contact: Prof. Fulvio Attina: euromed@mbox.unict.it
or see Website: http://www.fscpo.unict.it/EuroMed/CJMmems.htm
Official Euro-Med Partnership Events
EURO-MEDITERRANEAN SUMMIT OF ECONOMIC AND SOCIAL COUNCILS
AND SIMILAR INSTITUTIONS
When: 3-5 November
Where: Antalya, Turkey
SECOND MEETING OF THE CORRESPONDENTS' NETWORK ON THE
SHORT AND MEDIUM TERM ACTION PROGRAMME FOR THE ENVIRONMENT
(SMAP)
When: DELAYED (Note: 9-10
November date postponed indefinitely)
Where: Brussels
JOURNALISTS’ SEMINAR ON ENVIRONMENT AND DEVELOPMENT IN
THE MEDITERRANEAN
When: November-December, 1999
Where: Tampere / Capri
Contact: Tampere Peace Research Institute, Dr Tuomo Melasuo,
Finland, tel. +358 3 215 76 92, fax. +358 3 223 66 20
EURO-MEDITERRANEAN CONFERENCE OF MINISTERS OF HEALTH
When: 2-4 December
Where: Montpellier
Contact: Mr Jacques Maire, Delegate for International
Social Affairs, Ministry of Employment and of Solidarity, Secretariat of
State for Health and Social Action, PARIS. Tel. 01. 40. 56. 73. 81 - Fax:
01. 40. 56. 65. 93 or 72. 43
Other Related Events
THE EU AFTER 2000: NEW POLICIES, NEW INSTITUTIONAL ARRANGEMENTS
AND NEW MEMBERS?
When: 1-3 November
Where: West Sussex, UK
Organised by Wilton Park. Contact Virginia Crowe, E-mail:
virginia.crowe@wiltonpark.org.uk
Or See website: http://www.wiltonpark.org.uk/
FREE TRADE UNDER WTO RULES: and its Implications for Regional
Trade Exports
When: 3-5 November
Where: Beirut, LEBANON
Organised by ESCWA. Contact: Mr. Zaki Fattah, Chief,
Economic Development Issues and
Policies Division, ESCWA, Tel: 00961-1-981 401 or E-mail:
zfattah@escwa.org.lb
NGO WORKSHOP ON GLOBALIZATION, SOCIETY & THE ENVIRONMENT
When: 4 November
Where: Jerusalem, ISRAEL
Organised by Green Action
Contact Chad at greenman@shani.net
THE ROLE OF THE STATE IN POVERTY ALLEVIATION
When: 7-10 November
Where: Amman, JORDAN
Organised by the Comparative Research Program on Poverty.
Contact Mr. Inge Erling Tesdal.
E-mail: inge.tesdal@helsos.uib.no
Or see: website: http://www.unesco.org/most/
THE SOCIAL IMPACT OF FREE TRADE IN THE MEDITERRANEAN REGION
When: 8-11 November
Where: St. Julian's, MALTA
Organised by Wilton Park. Contact Virginia Crowe, E-mail:
virginia.crowe@wiltonpark.org.uk
Or See website: http://www.wiltonpark.org.uk/
MEDCOAST 99 & EMECS 99
When: 9-13 November
Where: Anatolia, TURKEY
Organised by the Medcoast Secretariat
MUNICIPAL SOLID WASTES MANAGEMENT IN THE ARAB REGION
When: 6-8 December
Where: Cairo, EGYPT
Organised by RAED and Envirotech, in cooperation with
the Organization of Arab Cities – Kuwait, and under the auspices of the
Egyptian Ministries of State for Rural Development, the Public Sector,
and Social Affairs. Contact: Mr. Abdel Bassit Aly or Ms. Rita Kirdahy at
Tel: 202 304 3699, Fax: 202 304 3655.
E-mail: enviro@starnet.com.eg
or aoye@ritsec1.com.eg
Website : http://www.envirotech.com.lb
Please let us know of any events you feel should be
listed.
Contact us at: mftz@gmx.net
______________________________________________________________________________________
MFTZ Environment Monitor is published by Friends of the Earth Middle East (FoEME) in co-operation with Friends of the Earth Europe (FoEE), and is produced in collaboration with Friends of the Earth International’s Trade, Environment, and Sustainability (TES) program.
Contributions of relevant articles and/or announcements for publication and events in the MFTZ and comments and suggestions are welcome. Please contact the editor at mftz@gmx.net
The opinions expressed in this publication are those of FoEME and/or of individual contributors and not those of our sponsors. MFTZ Environment Monitor recognizes the support of Friends of the Earth International and of the Middle East Regional Cooperation (MERC) program of USAID.
This newsletter or portions thereof may be freely distributed. All quotations from material enclosed herein should be properly cited. If cited in other publications, please send copies to FoEME.