Mobile Phone Shopping to Create Efficient Markets across Borders

 

An anticipated game-changing revolution in African trading set for 2013 is getting one innovative business very excited.

Southern African mobile phone “m-commerce” pioneer moWoza (mowoza.com) is developing new ways of selling services and products through mobile phones and developing the networks and infrastructure to capitalize on coming changes in Africa as cross-border trade is liberalized.

It is already selling food packages containing well-known South African brands that can be ordered by migrants on their mobile phones and then delivered to recipients – family or friends – even in remote and hard-to-reach communities. The service is currently operating between Mozambique and South Africa – the two countries share a border.

The start-up hopes to help the millions of migrant workers and small traders who contribute to the constant flow of trade and wealth between states in Africa. These people face many obstacles, including bureaucratic red tape, corruption and harassment.

Cross-border trade by economic migrants is largely informal. moWoza hopes to make it formal and efficient while reducing exploitation of migrants and corrupt practices by officials. By providing an easy-to-use mobile phone service, it hopes to build trust with these transactions.

Africa is a market of a billion people worth US $2 trillion in trade and business, but the World Bank estimates the continent is losing billions of dollars in potential earnings because of high trade barriers. It found that it is easier for African countries to trade with the rest of the world than with other African countries.

The continent’s leaders are calling for a continent-wide free trade area by 2017.

Studies by the World Bank and others have repeatedly shown that inefficient transport and trade barriers translate into higher prices of goods for consumers as importers pass along high transport costs to consumers. Food prices remain extremely high in Africa – almost 25 per cent higher than they were in 2006, according to the World Bank. In developing countries, people normally spend up to 80 per cent of their incomes on food.

With the world in the grip of an ongoing food crisis brought about by multiple factors – including growing populations, environmental challenges such as drought and soil depletion, declining rural economies, inefficient farming methods and commodity speculation – measures that increase efficiencies and trade can be a powerful counterweight and help drive prices back down again.

moWoza – mo stands for mobile and Woza is a Zulu word meaning running -sells a range of products including basic foodstuffs to a target market of cross-border migrants in Southern Africa. moWoza estimates there are 7 million migrant and cross-border shoppers in South Africa alone, and it’s building a network reaching into remote communities to deliver packages ordered through its m-commerce service on mobile phones.

moWoza aims to open up access to products in these underserved markets.

moWoza is trying to position itself for the new opportunities that will arise when, in 2013, 23 African borders open for regional trade, creating a vast trading area stretching from Cairo in Egypt to Cape Town in South Africa.

moWoza wants to be the m-commerce brand that people will turn to. It is chasing customer markets that include African economic migrants, small and medium-sized enterprises doing cross border trade, and the 30 million African economic migrants who are supporting family back in their home countries.

Founder Suzana Moreira says the company carried out extensive research in South Africa, Mozambique, Lesotho, Zimbabwe and Kenya before launching its first trial runs between South Africa and Mozambique. “We ran several pilots to determine the most efficient way to provide access to packages for the beneficiaries and developed the necessary technology to enable our customers (migrants) to place orders simply. We are now operating between Johannesburg and Maputo,” she said.

Officially incorporated in 2009, moWoza did not get up and running until 2010.

Once a customer has experienced a delivery from moWoza, they are introduced to other services like banking or how to download information from the Internet. Many customers are only just learning about the resources available online.

“We look forward to the opening up of cross border trade as our findings suggest that the liberalization and facilitation of the cross-border trade initiative will increase demand for all products and services from South Africa to neighbouring countries,” Moreira said. “South Africa offers an extensive range of products compared to the choice of products that are offered in many of the neighbouring countries.

“The structures and networks that compel migrants to come to South Africa are well established,” she explained.

“The social networks encourage the movement of labour. Hundreds of thousands of male migrants from the Southern African Develoment Community, SADC (http://www.sadc.int/), countries have spent the greater parts of their working lives in South Africa. They in turn had parents or grandparents who had worked in South Africa, while providing a lifeline to the family in the home country.

“This practice will continue: mobile money to a degree will facilitate this lifeline but as long as products can be sourced cheaper in South Africa, the demand for South African products will continue.”

The people behind moWoza sound like business radicals, proclaiming that traditional ‘bricks and mortar’ businesses will be replaced in a shopping revolution by WAP (wireless application protocol) and SMS (short message service) business platforms operating on mobile phones.

Apart from developing the m-commerce business, moWoza aspires to become a well-known brand for the migrant community.

“Becoming a lifestyle brand is a bold statement on our part,” Moreira said. “However, this goal reflects a measure of success and would demonstrate that we are delivering value to our customers (migrants and micro-merchants) and their beneficiaries.”

The moWoza brand hopes to reflect the lives of their customers and be all about embracing fluidity and mobility.

“As our primary customers are transnational and highly mobile (immigrants with a dual existence), we would like moWoza to represent mobility and fluidity (attune to anytime, anywhere, always).” she said. “Their greatest aspiration is an improved livelihood and a simplification of the rigours of grass-roots existence.”

moWoza foresees big changes coming for the economies of the African countries affected by the opening up of regional trade. According to its website: “New markets and trading routes will mushroom, traditional value chains will be replaced with ICT [information and communications technology] innovations; a savvier and younger consumer will emerge who will value convenience and simplicity.”

For users, moWoza’s service works like this: A customer uses a mobile phone to make a purchase. An agent helps with selecting the right package and delivery options. When the payment is made, an SMS mobile receipt – a so-called m-receipt – is sent to the customer. The person who will be receiving the parcel will also receive a text message. During the delivery process, ‘m-updates’ are sent on progress to both parties and when the parcel is finally delivered, a final notification is sent of delivery.

Special drop-off points have been set up in countries where the service is available and there is follow-up contact with the customer to determine their continuing needs.

MoWoza hires people from the communities they operate in as agents. An agent works with the customer to show how the Internet works on mobile phones and to improve their literacy skills.

Product parcels are selected to meet the World Health Organization (WHO) nutritional guidelines. The packages are selected based on focus groups and customer feedback.

With offices in South Africa and the United Kingdom, moWoza is looking forward to expanding what it can offer.

“We will continue to innovate, and deliver services that improve the livelihoods of our target market and their beneficiaries,” Moreira said. “We will extend our packages to include seeds and other agricultural products, school and educational materials, and health products. As we grow, our services will extend to digital (virtual) goods, e.g. insurance products specifically targeting the underserved communities.”

By David South, Development Challenges, South-South Solutions

Published: August 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Anti-bribery Website in India Inspires Others

An Indian website tackling corruption has been so successful it has inspired a wave of followers in China.

The I Paid a Bribe website – motto: “Uncover the Market Price of Corruption” – was set up by the Janaagraha Centre for Citizenship and Democracy (http://www.janaagraha.org), a non-profit organisation based in Bangalore, India.

Janaagraha is dedicated to working with government and citizens to “improve the quality of life in Indian cities and towns,” according to its website.

Janaagraha’s initiatives strive “to make government departments transparent and accountable,” and the ipaidabribe programme (http://www.ipaidabribe.com) fits in with that goal. It seeks to harness the collective voices of the citizens to report and quantify incidents of corruption. The website will help to paint a picture of the level of corruption in cities and help the NGO in its fight to improve government oversight systems and procedures and to improve law enforcement and adherence to regulations.

The website tackles the “pernicious effect of corruption on destroying city life and disempowering citizens,” according to Raghunandan Thoniparambil, the site’s programme coordinator. “The original idea was that the website could become a simple means of tracking the market price of corruption – a kind of price prediction mechanism.”

He said the original idea was tongue in cheek and propelled by cynicism – but the site’s creators soon realized that “such an effort was indeed a very powerful one.”

The website displays reports and analytics on bribe patterns by city and by transaction amounts, frequency and averages.

The long-term goal is to reduce corruption faced by Indians when they use government services. The website asks users to log both recent and past incidences of bribery. It says: “Please tell us if you resisted a demand for a bribe, or did not have to pay a bribe, because of a new procedure or an honest official who helped you. We do not ask for your name or phone details, so feel free to report on the formats provided.”

Neither accusers nor accused are identified by name – only the incidents are logged. The website is funded by a grant of US $3 million and the NGO is planning to launch a mobile phone application as well.

The website doesn’t pursue individuals because it has found this approach is a distraction to getting systemic improvements by government.

“By not allowing names to be published, we have eliminated any incentive for any individual to make a false or malicious complaint,” said Thoniparambil. “Since nobody will gain anything by reporting a false complaint on our site because we do not act on complaints, we expect that the stories on the site are true.”

The site has been so popular it has spawned imitators in China and elsewhere. Thoniparambil said Janaagraha has been approached by civil society organisations in 13 countries about collaborating.

After a story was published in the Beijing News about I Paid a Bribe, a flurry of ‘tips’ and accusations flooded the Internet in China, and people set up similar websites to gather information on bribery and corruption in their country. One web developer called “Peater Q” set up a Chinese version of I Paid a Bribe, calling it wohuilule.com. Another two websites that popped up included “I Bribe…” (http://www.wxhwz.com) and http://www.tmzg.org. Some of the dozens of websites have been taken down, but others have received official support and encouragement.

“Peater Q” says he is a young Communist Party member and has received government permission for his site. He says the name of his site, wohuilule.com, is a Chinese translation of “I paid a bribe.”

These are still early days as these websites work out how to balance the need to ferret out corruption and bribery and the need to avoid gossip, rumour and slander. It is clear the damage done to a country when corruption and bribery get out of control is significant.

The United Nations’ Global Compact on anti-corruption calls it “one of the world’s greatest challenges.”

A report by the Carnegie Endowment for International Peace on Chinese corruption (http://carnegieendowment.org/2007/10/09/corruption-threatens-china-s-future/g4) found it threatens the country’s future by increasing socioeconomic inequality and social unrest. The report found 10 percent of government spending, contracts, and transactions goes to kickbacks and bribes, or is simply stolen. It also found the indirect costs of corruption to include efficiency losses, waste and damage to the environment, public health, education, credibility and morale.

“Corruption both undermines social stability (sparking tens of thousands of protests each year), and contributes to China’s environmental degradation, deterioration of social services, and the rising cost of health care, housing, and education,” the report said.

I Paid a Bribe is being used to build up an intelligent picture of corruption and bribery in India so that real change can be made.

“Citizens’ reports on the nature, number, pattern, types, locations and frequency of actual corrupt acts and values of bribes will add up to a valuable knowledge bank that will contribute to a reduction in bribe payments,” Thoniparambil said.

Not only does the website raise awareness about the problem and its dynamics, it maps out the path corruption takes through a public service. This, the website hopes, will enable better “more consistent standards of law enforcement and better vigilance and regulation.”

“We believe that every citizen who reports a story on our website about paying a bribe is angry enough to begin to resist it,” explains Thoniparambil.

“Except for using the data that we receive for further analysis, we will not take the complaints and stories forward. We do not intend to invoke the courts.”

But these websites need to be run with caution and care and they do have their critics.

“If you wanted to tarnish the reputation of the government or a department within it, or settle a vendetta, you could just get all of your friends to post claims against them,” Raymond Fisman, a professor at Columbia Business School who has studied corruption, told the BBC.

“There is no way of credibly aggregating the information to assess the magnitude of the problem,” he added.

Thoniparambil, however, remains positive that corruption and bribery are problems that can be tackled.

“I believe that corruption has grown this big only because as citizens, we have tolerated it,” he explains. “If we actively oppose it and there are enough of us, the government has to buckle down and tackle the problem effectively.

“Corruption may be rampant in India, but it is not endemic,” believes Thoniparambil. “Blaming it on our value systems is a poor alibi with no substance in it. I do not believe that Indians are inherently corrupt; our value systems are as good or as bad as anybody else’s. Corruption is not a social trend that arises out of an erosion of value systems; it is born out of systems failure. Corruption flourishes because we have poorly designed governance systems in the country.”

Thoniparambil sites a number of Indian successes to back up his optimism: competition in telephone service providers has reduced corruption; booking of railway tickets online has taken the power away from corrupt ticket sellers; and government departments have been forced to state how long services will take to complete.

Thoniparambil believes it is about changing the relationship between citizens and the public services they receive.

“We would like citizens to begin to realize that public services are our entitlements,” he says. “These are not favours dispensed from above. They ought not to be pessimistic about corruption. Countries have cleaned up very dramatically and the processes by which it has been done have been documented.

“Reduction of bribery in India will improve access to government services, particularly for the poor, reduce the cost of delivery of such services, speed up business and recourse to legal remedies. It will improve the quality of infrastructure and will be deeply empowering for Indian citizens.”

“It is only the collective energy of people that can turn the tables on the corrupt.”

By David South, Development Challenges, South-South Solutions

Published: August 2011

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Food Inflation: Ways to Fight It

Food inflation has taken off at the beginning of 2011. As the global economic crisis enters its next phase, both developed and developing countries are experiencing inflation. There are many factors fuelling the rise in prices – inefficient distribution and storage systems, lack of investment in agriculture, devaluing currencies, high demand, natural and man-made disasters, use of food products like corn to make biofuels – but there are also ways to counter the effects of food inflation that have been tried and tested across the South.

The United Nations Conference on Trade and Development (UNCTAD) says the least developed countries spent US $9 billion on food imports in 2002. By 2008, that amount had risen to US $23 billion. Supachai Panitchpakdi, secretary general of UNCTAD, says “the import dependence has become quite devastating.”

Worse, more people had less money to buy the food. The number of individuals living in extreme poverty “increased by 3 million per year during the boom years of 2002 and 2007,” reaching 421 million people in 2007.

For millions of people, it is a matter of life and death that food remains affordable. The poor pay the largest share of their income on food. Raise that cost, and the poor quickly have little money left for other things, like housing, transport, clothing or education.

Approached as a problem needing a solution, it is possible to deal with a bout of food inflation. Every food crisis has its origins and can be resolved. A staggering amount of food goes to waste every year, and a vast quantity can’t get from the farm to the market in time because of infrastructure problems.

An Indian refrigerator – the ChotuKool fridge (http://www.godrej.com/godrej/godrej/index.aspx?id=1) – is designed to stay cool for hours without electricity and to use half the power of conventional refrigerators. Priced at US $69, it is targeted at India’s poor – a population of over 456 million, almost half the total Indian population (World Bank).

Manufactured by Godrej and Boyce and weighing just 7.8 kilograms, it is designed around the stated needs of the poor, who wanted a fridge capable of cooling 5 to 6 bottles of water and 3 to 4 kilograms of vegetables. Portability was crucial as well, since needs to be moved when large family gatherings take place in small rooms.

As a photo shows (http://innovation.hindustantimes.com/summit-photos/godrej/chotukool-3.php), the fridge looks more like a drinks cooler than the typical large refrigerator. It works by replacing the standard compressor motor found in most fridges with a battery-powered heat exchanger.

In Ghana, a mobile phone-driven Internet marketplace is helping to improve efficiencies in farming and selling food. Esoko (esoko.com/#lang=en), tracks products including ground nuts, sesame, tomato, maize and white beans. It offers market information from Afghanistan, Benin, Burkina Faso, Cameroon, Cote d’Ivoire, Ghana, Madagascar, Mali, Mozambique, Nigeria, Sudan and Togo.

India’s e-Choupal is making food distribution more efficient in a country experiencing high inflation. E-Choupal (http://www.echoupal.com) has developed a reputation for both controlling prices and increasing incomes for poor farmers. Started in 2000 by the major Indian company ITC Limited (http://www.itcportal.com), it links farmers to the latest prices for products including soybeans, wheat, coffee and prawns.

E-Choupal works through computers set up in rural areas and has built one of the largest internet initiatives in rural India, reaching 4 million farmers in 40,000 villages.

Brazil, over the last 30 years, has transformed itself from a food importer to one of the world’s major food exporters. It made these impressive achievements with few government subsidies. The agricultural success is down to Embrapa (http://www.embrapa.br/english) – short for Empresa Brasileira de Pesquisa Agropecuária, or the Brazilian Agricultural Research Corporation. A public company set up in 1973, it has turned itself into the world’s leading tropical research institution. It breeds new seeds and cattle and has developed innovations from ultra-thin edible wrapping paper for foodstuffs that turns colour when the food goes off to a nano-tech lab creating biodegradable ultra-strong fabrics and wound dressings.

Another approach can be found with a farmer in Kenya, Zack Matere, who boosted his potato crop by turning to Facebook for help. On his farm in Seregeya, Matere used the internet to find a cure for his ailing potato crop.

He uses his mobile phone to access the internet at a costs of about US 0.66 cents a day. One example of the kind of intelligence Matere is able to glean from the internet is reports of cartels deceiving farmers by buying potatoes in over-large 130 kg bags instead of 110 kg bags. Matere takes this information, translates it into Swahili and posts it on community notice boards.

Another fast-growing solution is bringing farming to urban and semi-urban spaces, where the majority of the world’s population now lives.

Urban farmers can take advantage of their close proximity to consumers, keeping costs down and profits up. They can also solve one of agriculture’s enduring problems – where to find water for irrigation by using existing waste water. Waste water is plentiful in urban environments, where factories usually pump out waste water into streams, rivers and lakes.

In Accra, Ghana, more than 200,000 people depend on food grown with wastewater. In Pakistan, a full quarter of the grown vegetables use wastewater.

Family farms are critical to weathering economic crises and ensuring a steady and secure food supply. The International Fund for Agricultural Development (IFAD) (www.ifad.org) called in 2008 for small family farms – which sustain the livelihoods of more than 2 billion people _ to be put at the heart of the global response to high food prices and uncertain food security.

In Brazil, this call is being answered by a bold initiative to create a “social technology,” combining a house-building programme with diverse family farms.

This is where the Brazilian farmer’s cooperative Cooperhaf: Cooperativa de Habitacao dos Agricultores Familiares (http://www.cooperhaf.org.br/) steps in.

“We see the house as the core issue,” said Adriana Paola Paredes Penafiel, a projects adviser with the Cooperhaf. “The farmers can improve their productivity but the starting point is the house.

“Family farming is very important for the country – 70 percent of food for Brazilians comes from family farming,” said Penafiel. “The government wants to keep people in rural areas.”

Making farming more appealing is being shown as a great way to get ahead in modern Africa. One woman hopes more people will be attracted to farming and boost the continent’s food security and reduce costly imports.

Cynthia Mosunmola Umoru’s company, Honeysuckle PTL Ventures (http://www.tootoo.com/d-c3015227-Honeysuckles_Ptl_Ventures/), is based in Lagos, the business capital of Nigeria.

Leading by example, Umoru has set up a successful and modern agribusiness focusing on high-quality food products using modern packaging and fast delivery. She produces meat products, from seafood like shrimps and prawns to snails, beef, chicken, and birds. Her niche is to deliver the product however the customer wishes: fresh, frozen or processed.

Radical new food sources are also another option over time. The Food and Agricultural Organization (FAO) has explored insect protein as a contributor to better nutrition, the economics of collecting edible forest insects, methods of harvesting, processing and marketing edible forest insects, and ways of promoting insect eating with snacks, dishes, condiments — even recipes.

The range of insects that can be tapped for food is huge, and includes beetles, ants, bees, crickets, silk worms, moths, termites, larvae, spiders, tarantulas and scorpions. More than 1,400 insect species are eaten in 90 countries in the South. Entrepreneurs in the South are making insects both palatable and marketable – and in turn profitable. These innovations are adding another income source for farmers and the poor, and supplying another weapon to the battle for global food security.

By David South, Development Challenges, South-South Solutions

Published: January 2011

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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False data makes border screening corruptible

“Big Brother” system could violate rights of Canada’s visitors

By David South

Now Magazine (Toronto, Canada), May 21-27, 1992

New technology that can spew out a person’s life history in less than six seconds is now available to Canada’s customs and immigration officials.

And while Canada customs and immigration officers say this toy is a boon – replacing the need to memorize names of so-called undesirables – civil rights workers and refugee activists point out that the gizmo could have serious consequences, with little recourse.

The technology is called PALS, or primary automated look out system, and is already in operation at airports in Toronto, Montreal, Calgary, Winnipeg, Ottawa and Vancouver.

PALS’ operation is based on the use of computer-readable passports. Canada is one of several countries that have started including computer strips on passports and identity cards. Officers use PALS by either keying in a special number printed on the passport or identity card or using a scanning machine to read the strip.

The system went into effect at Toronto’s Pearson airport on January 20, after a three-year pilot project in Vancouver, adding Canada to the 11 countries that have machine readers for passports. Under the old system, customs officers combined judgement, questioning and the most-wanted list to decide if a passenger required further interrogation and search.

During a demonstration of the system, customs officials at Pearson airport boast about the system’s role in apprehending a drug smuggler in PALS’ first week of operation.

Sinister sign

But to civil libertarians with experience of such systems in other countries, PALS has a sinister implication. Many say that PALS spews out what is fed into it. And depending on the country involved, what is fed into it may not necessarily be true.

While customs emphasizes PALS’ role in apprehending popular targets like drug smugglers, terrorists and child kidnappers, its reach also includes people who have smuggled in too many cigarettes or bottles of alcohol, convicted criminals who have finished serving their time, immigrants, refugees and a range of petty offenders.

All of these face a second interrogation and detention based on what their governments have decided to incorporate into the computer strip. And it is this that worries civil libertarians and refugee workers.

Consider the case of a legally sponsored Portuguese immigrant who arrived at Pearson just after PALS had been introduced. He was detained based on information stored in PALS. His immigration lawyer Ali Mohideen recalls how the man was held because of a cheque that he bounced in his native Portugal about eight years ago.

Ed Lam, director of research for the Canadian Ethnocultural Council, feels customs and immigration already have “too many powers.” He regularly receives complaints from visible minorities and immigrants who feel they are singled out for harassment at the airport.

“This is big brother. Legal protection is not enough,” he argues. “It leads to costly court battles with the government. I would like to see an ombudsperson or complaints bureau set up. As for refugees turned back at the border, we will never hear from them.”

False data

Other critics, especially those in the US, where a PALS-type system has been in operation for more than a decade, worry that the system will simply accept information given by tyrannical governments.

“It is hard to trace false information to a foreign government,” says Jeanne Woods, legislative counsel to the American Civil Liberties Union, which monitors abuse under the United States system.

“People have been accused of being communists or terrorists who have denied it. The El Salvadoran government is one example of a regime which has called prominent human rights activists and lawyers terrorists.”

She would like the Canadian Parliament to pass a law similar to one passed last November in the US requiring the state department to report to Congress when somebody is denied access because they have been called a terrorist, so that the origin of the information can be tracked.

The Canadian database draws its information from several sources, according to customs spokesperson Suzanne Bray. The sources include immigration records and the Police Information Retrieval System, which is a database shared between customs and the RCMP.

Bray refuses to divulge any other sources, citing security, but both RCMP and customs operate their own intelligence services, sharing information with their counterparts all over the world, especially the US. Information is also drawn from the Canadian Security Intelligence Service (CSIS) and its sister organizations such as the CIA. However, CSIS spokesperson Ray Boisvert says they have adequate safeguards against false information provided by countries known to be human rights abusers.

“CSIS does look at bias in intelligence reports,” he says.

The US equivalent of PALS has been criticized after several cases of abuse were detected. Gara LaMarche, executive director of the Fund for Free Expression, a project of US-based Human Rights Watch, has documented abuse on political and ideological grounds.

“The US public has a right to hear dissenting views under the first amendment of the Constitution,” he says. “I don’t think improving the technology of border control violates civil liberties, but keeping a massive database of information which includes people’s political associations is bad.”

Similar concerns are expressed by John Tackaberry of Amnesty International in Ottawa, which is only now beginning its own analysis of PALS. “We have concerns over data input, who controls information and basic civil liberties.”

Even as Canadian civil rights activists take stock of PALS, Canada customs is planning to use it to check cross-border shopping by expanding the system to all land entry points.

As for those visitors who feel wronged by PALS, they may have a problem seeking redress from such organizations as the Canadian Human Rights Commission. A spokesperson says the CHRC can only help those who have been admitted to Canada. And visitors turned back at the border are not considered admitted.

Sherry Gerstl, a customs superintendent responsible for the implementation of PALS at Pearson, says that people can also appeal to the Privacy Act to see information that is kept on them. But two fact sheets explaining how this can be done are located in a corner, pretty much out of public view.

Bray acknowledges that “honest” passengers could face the prospect of a search with PALS, but given its positive attributes, she says, passengers involved in such delays should simply “grin and bear it.”

"False data makes border screening corruptible": Now Magazine 1992

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State of Decay: Haiti turns to free-market economics and the UN to save itself

 

By David South

Id Magazine (Canada), July 11-25, 1996

Port-au-Prince – Brand-new four-by-four jeeps in various shapes and sizes bounce over the moon-like craters of Port-au-Prince’s roads. The presence of so many expensive vehicles in a country unable to feed all its citizens is hard to take, but it is not one of the worst paradoxes of Haiti.

The appalling state of the roads – more like occassional stretches of asphalt to break up the monotony of potholes – is an apt symbol of Haiti, a reminder with every jar of the tailbone of the public squalor of the many and the private wealth of the few. The shiny new jeeps are not a sign of recent good times, but reveal who has all the money in this nation of almost seven million: the tiny Haitian elite, thieves, the United Nations and the multitude of non-governmental aid agencies.

When democratically-elected president Jean-Bertrand Artistide, deposed in a 1991 coup, returned to complete his term in office in 1994, many Haitians hoped that this country would at last begin to shake off centuries of exploitation at the hands of a selfish elite backed by American corporate masters and begin to build a democratic future.

The United Nations mission in Haiti, which includes 700 Canadian troops, is intended to support the country’s fledgling democracy. But Haiti’s future remains uncertain – as does the role the UN will play in shaping it.

Despite negotiating a peaceful and democratic transition last February 7 from Aristide – a firebrand former priest and passionate advocate of Haiti’s poor – to successor Rene Garcia Preval, Haiti hasn’t stopped its economic freefall. Economists predict the country won’t match 1991 earning levels until the next century. Political unrest resulting from opposition to the government’s privatization plans could also spell trouble ahead.

The United Nations presence, due to end June 30, has been extended another five months at the request of the Haitian government. The newly-minted UN Support Mission in Haiti, a military force of 600 UN troops supported by 700 soldiers paid through voluntary contributions, is being assembled. It will replace the current force of 1900.

Lousy loans

Meanwhile, the government of Rene Preval is negotiating with the International Monetary Fund (IMF), the World Bank and the United States to get much-needed loans to help balance the budget. Critics say the world’s banks are trying to lock the poorest country in the Western hemisphere further into crippling debt. The Haitian budget is US $750 million, 60 per cent of which the government hopes to raise from loans.

But there is a condition. Haiti must embark on a structural adjustment programme: widespread firings of the public service, privatization of most of the public sector, loosening of controls over foreign capital, adherance to the ethos of global trading blocks espoused by the North American Free Trade Agreement (NAFTA). Some call this neo-liberalism, others neo-conservatism. Either way, it forces this impoverished country to limit how it can address rebuilding a crumbling infrastructure.

The government’s hands are tied, though, as the conditions were part of the deal to return Aristide to power.

A Canadian public relations company, Gervais-Gagnon-Covington Associates, has been paid US $800,000 by the American government to sell the idea of privatization of Haiti’s handful of idle and near-bankrupt state enterprises.

In order to plunge deep into this Haitian qaugmire, I pitch up at the legendary Hotel Olofsson -made famous by novelist Graham Greene in the Comedians – and begin interviewing in the languid atmosphere by the pool.

“Aristide has put Haitians in a giant trap with the IMF plan,” says Jane Regan, who runs an independent news service based in Port-au-Prince. “The US $1 billion in loans will double the national debt.

“Haiti used to be self-sufficient in rice – last year they bought US $56 billion in US rice. The roads are worse now than a year ago. Right now the UN mission is of questionable worth and Canadians are getting taken advantage of.  They have been sent to clean up after the Americans. These are the same neo-liberal economic policies that hurt Canadian workers – just imagine what Haitians are feeling!”

Regan thinks that, so far, the only people to make any money out of this arrangement are businesses and the more than 800 NGOs operating in Haiti. And on that note, the feisty Regan disrobes and plunges into the Hotel’s pool.

According to Kim Ives, a reporter with the Haitian newspaper Haiti Progres, there are a few cracks in the solidarity between Preval and Aristide: “Aristide is hitting out against privatizations. In a two-hour TV interview, he drew a line between himself and Preval.”

One of the few visible signs of change in Haiti is the dusty Octobre 15 road leading from the airport past former president Aristide’s palatial home on its way to the wealthy suburb of Petionville. It is bordered on one side by Camp Maple Leaf, and on the other by dilapidated shanty towns and desperate street vendors.

Cynics point out the road conveniently serves the interests of the elite once again. It offers a direct and more or less pothole-free route from the secluded mansions of Petionville to the airport – a crucial escape route in a politically volatile developing country. In fact, a development of monster homes that would make a Canadian suburbanite blush is going up near the airport to capitalise on this.

Canadian troops

Caught between the Haitian government and its people is the United Nations, including Canada’s troops. Canadian troops form the first line of defence – along with Preval’s personal secuity guards – to defend the National Palace. They accompany the president wherever he goes, 24 hours a day.

Some fear growing resentment among Haitians for government policies will pitch the population against the soldiers.

At Camp Maple Leaf, the home base of Canada’s military contingent in Haiti, the troops are scrambling to adjust to a new mission sanctioned by the United Nations. As of June 30, they must take a back seat to the troubled Haitian police force as it tries to prove that the intensive training provided by police from around the world has paid off.

In the first week of July, the Canadian soldiers of the Royal 22nd Regiment – the famous Vandoos  – receive confusing news about a change in their firing orders or Rules of Engagement. ROEs dictate the tone and behaviour of peacekeepers on a UN mission and, as the experience of Somalia demonstrates, they can be the difference between success and disaster.

As the new mandate starts, the Canadians are first told they will be only able to use deadly force to defend themselves and not Haitians. If a member of the government is assassinated, they must stand by. If a Haitian is clubbed to death before their eyes, they must stand back. It is a qualitative change from their ROEs prior to June 30.

Ottawa military spokesman Captain Conrad Bellehumour says the change is indicative of an evolving mandate. But a military spokesman in Haiti says the old ROEs are now back in force, and Canadians can intervene to save a Haitian’s life.

“Maybe somebody’s been listening to Jean-Luc Picard too much,” quips retired Brigadier-General Jim Hanson, in a reference to TV show Star Trek’s prime directive of non-interference in a culture.

Preval’s police

A large banner hangs over a Port-au-Prince street: “Police + Population = Securite + Paix”. The UN has placed its greatest emphasis on reforming Haiti’s policing and justice system. The Police Nationale d’Haiti (PNH) was formed, and the RCMP and the American Federal Bureau of Investigation (FBI) were asked to provide training. The idea is to break from the past – when the military used policing as an opportunity to terrorize the population – and establish a police force to serve and protect.

But the efforts of the Haitians and their international police advisers have had a mixed success. According to Canadian soldiers, the Haitian police need to be coaxed into conducting routine patrols and have not given up patrolling in large numbers in the back of a pick up truck with rifles at the ready. To be fair, seven police officers have been killed since January, in what many believe is an organized campaign of terror orchestrated by sympathizers of the old dictatorship and drug gangs.

According to Sergeant Serge Martin of the Vandoos, “The PNH use 15 police officers to patrol and don’t talk to anybody.”

“You don’t depend on police to protect you,” claims Regan. “The Haitian government has no control over them. You don’t know if there is going to be a coup tomorrow.”

Jean-Yves Urfie, editor of the pro-democracy Libete newspaper in Port-au-Prince, believes the campaign to kill police goes back to the United States. “I am convinced the coup d’etat was financed by the Republican administration. I believe the Republicans want to destroy things here to show (President) Clinton wasted his time bringing Aristide back.

“The government was forced to incorporate former members of the military into the police force. And it would be terrible if the population develops the impression all cops are bad.”

“They are 10 years away from a viable police force,” concludes Hanson.

A stop at the fourth precinct police station shows just how far things still need to go. At the counter is a lone police officer, sharply turned out in his beige shirt and yellow-striped navy pants, courtesy of the Royal Canadian Mounted Police. But this proves to be a veneer of change. Canadian soldiers ask if everything is alright. They then ask to see tonight’s prisoners. The officer sheepishly leads the troops down a narrow corridor to 9 ‘ by 12 ‘ foot cell stuffed with nine prisoners. It is very hot and the stench from an open drain overflowing with sewage is nauseating.

Outside the Penitencier National in downtown Port-au-Prince, a yellow concrete structure with peeling pain, Haitians lined up to feed the inmates, talk about their frustrations with a justice system that has collapsed. Many complain that only the rich, who can hire lawyers, can enjoy the fruits of democracy. While state-directed beatings and killings have been dramatically reduced, most prisoners rot on remand until they are charged with a crime. Heiner Rosentdahl, the UN representative in Haiti in charge of prison reform, tries to be upbeat. “There have been no changes in conditions in Haiti’s prisons. Treatment of the prisoners is better, though there have been some abuses. We have developed a nation-wide register book of prisoners to help keep track of who is in prison.”

Another mixed blessing, according to Rosendahl, is the new requirement that all prisoners be fed two meal a day. The food is so poor, prisoners have been getting sick.

He is frustrated with the pace of penal reform. “The Haitian prison system hasn’t had a budget since October 1995, because of battles within the parliament,” he says. “The Haitian government didn’t ask for a plan to change this situation despite the minister of justice visiting the prison for the first time.”

According to Rosendahl, it is not the routine killing of thieves by mobs that worries the elite. Nor is it the assassination of police officers, or the untold thousands dying of disease and hunger. The only thing that is beginning to rock their world is a new phenomenon for Haiti: kidnapping and extortion.

Voodoo economics

For such a seriously depressed economy, there is an astonishingly large number of lottery booths – or Borlettes – on Haitian streets. They are so plentiful, they join gas stations as the main landmarks of the streets.

The industrial park which is now home to the remaining American troops stationed in Port-au-Prince, is a good monument to Haiti’s economic problems. Dilapidated and only barely functioning, this facility once supported, directly and indirectly, a large portion of the city’s population. As crummy as the sweatshop jobs were, they provided valuable income for the capital’s poor.

The Haitian economy under Francois Duvalier and his son, Jean-Claude, before the chaos of the late 1980s and 1990s, was based on assembling manufactured goods for the US market. Haiti was the world’s largest producer of baseballs, and ranked as “top three in the assembly of such diverse products as stuffed toys, dolls and apparel, especially brassieres. All told, the impact of international subcontracting was considerable,” according to author Paul Farmer in his book, The Uses of Haiti.

Today, Pierre Joseph, a Haitian-American from New York City, has a new job: he screens the ID cards of Haitian workers as they enter the park. He says there were once over 50 factories operating here; now there are 30.

Evidence of Haiti’s economic collapse is everywhere. On the walls outside the National Palace is scrawled Aba Preval Granhanje – Preval is a liar. Across the wide boulevard in a square are around 75 homeless children. They joke with the Canadian soldiers, especially boyish 2nd Lt. Marc Verret, who looks like a baby in soldiers clothes. The kids beg him for water and money.

In the market area, the piles of garbage, rotting meat and excrement make a muddy devil’s stew. Homeless children sleep on top of the abandoned crates. One small child is curled up in an American flag, asleep.

Desecrating dead

The dead also suffer the indignities of economic ruin. Outside the gates of the Hopital Generale, a man lies dead on a broken trolley in the yard. Others still alive, with limbs missing, are sprawled out on the ground. Chickens and goats roam the grounds. In the back is the main morgue for Port-au-Prince. The odour just 25 feet from the entrance to the morgue is normal for this city strewn with rotting garbage and stewed by a hot sun.

Inside, an overpowering odour like rotten chicken meat is the product of 450 human cadavers. Like rag dolls laid out in a ghoulish toy store, row upon row of children dead from starvation and disease – Haiti’s infant mortality rate is 127 per 1,000 babies born – are stacked almost to the ceiling. There are also adults. Old women, young men badly mutilated for stealing, are strewn out on the dirty concrete floor and on shelves.

There is no refrigeration, and according to military doctor Major Tim Cook, “something really nasty is going to come out of there if they don’t do something.”

Proving peacekeeping

More is at stake in Haiti than the re-building of a politically and economically devastated nation. For Canada’s armed forces, shaken and little stirred by the Somalia scandal, it is an opportunity to make amends. This time around, the peacekeepers are keeping the needs of the local population foremost in their gun sights. When the Vandoos head out on another one of their 24-hour patrols, the atmosphere is friendly and filled with gentle ribbing with the locals. They have the advantage of being able to speak French, a language understood to varying degrees by most of the population.

The approach of the individual soldiers varies widely. On a routine patrol, Alpha Company engaged in good-natured kidding around, with splashing the locals the worst offence. But a day out with Charlie Company, led by Sergeant Serge Martin, proved another story. The two privates assigned to accompany a group of journalists were a couple of operators. The day included a visit to a perfume shop, a trip through the wharf area looking for prostitutes and constant propositioning of the local women.

One Canadian corporal with the Vandoos, Eric Charbonneau, has been trying to make a small difference to the lives of the 400 people living in the community of Cazeau, a shanty town near the international airport. He has started literacy and hygiene lessons and raised money to help the residents build concrete houses to replace the mud dwellings they currently inhabit.

“I was walking along the fence and started to build a relationship with the kids,” he explains. “Some guy approached me and needed some help. It took three weeks to build a relationship. They are too used to white people giving away things for doing nothing. They were surprised when they had to work for it.”

At the gates to Camp Maple Leaf is a spray-painted sign. In Creole, French and English beside a Canadian flag, it says “No More Jobs.” While it could look at home back in Canada, it illustrates how important the presence of soldiers, the United Nations and charities are right now to the economy.

Some observers see the UN presence as part of a slide back into dependency on foreign money, restricting Haiti’s ability to assert itself. But others believe the turn to the international community is Haiti’s last hope of breaking with a past littered with dictatorships and poverty.

According to Captain Roberto Blizzard – an erudite and wise observer of the situation – the base has been stampeded with desperate Haitians looking for work. Blizzard has tried to find work for as many Haitians as he can, even helping them to form a laundry co-operative he hopes will survive long past the Canadians’ stay.

“There is a danger of the Haitian people turning into full-time beggars,” he says with sadness.

Id Magazine was published in Guelph, Ontario, Canada in the 1990s. This story was researched and published in 1996.

I covered the UNMIH mission in Haiti for Id Magazine in 1996.

Opinion: Canada is allowing U.S. to dictate Haiti's renewal: More news and opinion on what the UN soldiers call the "Haitian Vacation"

By David South

Id Magazine (Canada), August 22 to September 4, 1996

An August 19 attack on the Port-au-Prince police headquarters by pissed-off former Haitian soldiers should be a wake up call to Canadians. So far, the Haiti UN mission has seemed as safe as the soldiers' quip, the "Haitian Vacation". The UN soldiers patrol the capital in rickety Italian trucks, stopping to chat with the locals. On the surface, this mission looks like summer camp compared to the nightmare of enforcing peace in the former Yugoslavia.

But for one crucial factor: The UN troops are propping up an increasingly unpopular government. A government that is seen by many Haitians to be getting its orders from Washington, not Port-au-Prince. Canadian troops lead the UN mission in Haiti and make up 700 of the 1500 soldiers stationed there (the rest are from Pakistan and Bangladesh). There is a serious danger they will be caught in the crossfire of any uprising or coup attempt.

Canadian troops shadow president Rene Preval 24 hours a day and also guard the National Police. When I visited the dilapidated palace in July, with its handful of Canadian troops banging away on laptop computers, I could only hope nobody will want to mess with the UN.

The two prongs of Haitian renewal - reforming the economy and the justice system - are both being directed by the U.S.. Haitian senator Jean-Robert Martinez had a theory about the August 19 attack, which killed a shoeshine boy. Martinez believes it was in retaliation for government plans to privatize Haiti's rotting nationalised industries - a condition for receiving loans from the U.S. and the Washington-based International Monetary Fund and the World Bank.

Haiti is a good example of the carnage of cynical U.S. foreign policy. The U.S. wooed and then coddled the corrupt Haitian elite to run its sweatshops. As the "development" organization USAID once said, Haiti could be the "Taiwan of the Caribbean". The U.S. trained the Haitian death squad Front pour l'Avancement et le Progres Haitien (FRAPH), who then littered the outskirts of Port-au-Prince with the bodies of former president Jean-Bertrand Aristide's supporters during the dark days of the 1991 coup.

Three weeks ago American troops from the 82nd Airborne plopped down on the streets of Port-au-Prince to spend a week patrolling. What kind of message does this send? This tells the Haitians that the UN isn't the real deal; that if they get out of line, the Americans will kick their butts. Why does Canada allow the U.S. to undermine the credibility of our peacekeeping mission?

More visits by the Americans can be expected. It is no accident that a medical team attached to the 82nd Airborne remains on duty at the American base in Port-au-Prince.

The so-called justice reforms are mostly window dressing. Canada spent $4,750,000 to build and renovate court houses for the same corrupt judges that were the problem in the first place. That's the equivalent of punishing a thief by buying him/her some new furniture.

Rather than telling the Haitians to tighten their buckles around hungry bellies, Canada should be leading the fight to pave roads and provide clean water and social services to all. Canada should not be helping to impose austerity economics on the Western hemisphere's poorest country.

David South is the Features Editor of id Magazine

U.S. Elections Update: Clinton is using Canada to keep control of Haiti

By David South

Id Magazine (Canada), October 31 to November 13, 1996

Canadian troops are not only on the frontline of peacekeeping in Haiti but also the frontline of U.S. foreign policy - a policy that is unravelling during the run-up to the November 5 presidential election. While the living standards of Haitians in the poorest country in the Western Hemisphere continue to decline despite free elections, Canadian troops are charged with keeping the island nation peaceful. It’s a task that is proving more and more difficult as Haiti suffers a crime wave and violent political unrest.

While American president Bill Clinton tries to snatch another victory from a grumpy U.S. electorate, his advisors are desperately trying to keep the lid on his foreign policy “victories” in Bosnia and Haiti.

Things are so bad, Clinton sent his secretary of state, Strobe Talbott, and his national security advisor, Anthony Lake, to Haiti on August 30 in response to high-profile assassinations of right-wing leaders.

“The administration are hoping, with fingers crossed, nothing will happen before November 5,” says Larry Birns of the Washington-based Council on Hemispheric Affairs (COHA). “What the United States would like to do is cryogenically freeze all its foreign policy engagements so they don’t produce any problems. But we are losing very valuable time in Haiti because of Washington’s paralysis over negative developments occurring there.

“Washington didn’t realize an economic success story had to be bred there in a couple of years. The USAID programme is a scandal waiting for an investigation.”

There is also another election-year factor: Republicans are not fond of anything that whiffs of a humanitarian approach to Haiti. Since they dominate Congress, this is also Clinton’s problem.

Given the history of American support for dictatorships in Haiti, the Clinton administration has chosen a low-key approach. After the 1994 invasion, the Americans pulled out the vast majority of their troops within a year, handing over responsibility for internal security to a UN peacekeeping force. But the U.S. never fully cut itself off from interfering in Haiti, keeping a military base operating in the country’s only industrial park in Port-au-Prince.

And Canada is key to U.S. plans because of that sour legacy. Canadians are seen as free from the burden of colonialism, and as a plus, our 700 mostly French-speaking troops can communicate better with the local population.

This policy has gone as far as hiring a Canadian public relations company to promote structural adjustment programmes that are conditional upon Haiti receiving any foreign aid from the International Monetary Fund and the World Bank, both based in Washington.

Gilles Morin is co-ordinating manager for Montreal firm Gervais-Gagnon-Covington Associates, who won the contract. Morin says, while his company did win the contract, like many other things to do with Haiti, they have heard nothing since Fall 1995 because of disorganization.  

“On a personal basis there was a strong anti-American feeling among the population because of the past,” says Morin. “A lot of the financial institutions are based in Washington and they needed international support because banks in Washington are seen as American.”

But there is a risk that a switch in U.S. priorities during the heat of an election will endanger Canadian troops.

“If the president feels he has political risk in Haiti, he’s not going to take Canadian concerns into consideration,” warns Birns. “The UN mission gets caught up in the wake of U.S. efforts and it’s not able to define an independent course. Right now, the problem really is the USAID mission in Haiti is a total failure. The international donor function, you couldn’t exaggerate how disappointing it’s been in terms of almost no relief. The unemployment rate of 80 per cent is exactly what the unemployment rate was when the UN arrived.”

On August 28, American troops from the 82nd Airborne plopped down on the streets of Port-au-Prince to spend a week patrolling. Many observers questioned the motives for this intervention. Was it to say to Haitians the UN isn’t the real deal, and if they get out of line, the Americans will kick their butts? Why doesn’t Canada protest the U.S. undermining the credibility of our peacekeeping mission?

To Birns, sending in the 82nd was the foreign-policy equivalent of fast-food. “Sending in the 82nd Airborne merely aimed at getting a one-day headline,” he says. “The administration’s position has been staked on the fact there has been a number of foreign policy wins. But each of these victories is held together by corn starch and could unravel at any moment.”

Birns sees an escalation in political violence just around the corner. He fears the current economic crisis will help the formation of a violent left-wing guerrilla movement to rival existing right-wing paramilitaries.

“Without former president Jean Bertrand Aristide,” he explains, “there is growing apprehension that president Rene Preval will not be able to project a sufficient leadership to keep the average Haitian, who is sacrificing with no expectation of an improved standard of living, happy.”

While it has been almost two years since Haiti was the media’s darling, observers point out the cycle of violence has returned to the country’s streets despite the presence of UN peacekeepers and American troops.

When id reported from the Haitian capital of Port-au-Prince in July (id July 11 to 24, Number 18), it was obvious no progress had been made to improve the standard of living or rebuild the country’s crumbling infrastructure.

In an ironic twist, attempts to step up deportations of Haitian-Americans convicted of crimes in the U.S. has led to an increase in killings in Haiti according to the October 22 issue of New York weekly, The Village Voice.

More and more, the UN troops are propping up an increasingly unpopular government. A government that is seen by many Haitians to be getting its orders from Washington, not Port-au-Prince. Canadian troops lead the UN mission in Haiti and make up 700 of the 1500 soldiers stationed there (the rest are from Pakistan and Bangladesh).

There is a serious danger Canadian troops will be caught in the crossfire of any uprising or coup attempt, since Canadian troops shadow president Rene Preval 24 hours a day and also guard the National Palace, which was attacked August 20, killing two Haitians.

"U.S. Elections Update: Clinton is using Canada to keep control of Haiti": Id Magazine (Canada), October 31 to November 13, 1996

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