Thursday, 15 July 2010

The World Justice Cup: USA vs Germany

Striking differences are becoming apparent in the way respective national justice systems are handling the question of responsibility for the global financial crisis.

In Germany, the former CEO over at German's IKB Deutsche Industriebank AG, Stefan Ortseifen, has been found guilty of market manipulation. He was found guilty of misleading the market about the true impact of the sub-prime crisis on his institution, effectively manipulating the market.

By contrast, in the USA, Goldman Sachs is said to be in negotiation with the Securities and Exchange Commission to obtain a settlement that would simultaneously eliminate the fraud lawsuit against the bank as well as some of the SEC’s lower-profile probes of the firm’s mortgage department.

As the Wall Street Journal reports:

The settlement idea was floated by Goldman, which is eager to end the bad publicity swirling around the New York company ever since the SEC sued it in April over a collateralized debt obligation called Abacus 2007-AC1, these people said. Combining a settlement of the Abacus lawsuit with a resolution of related SEC probes could soothe Goldman clients and investors, while shielding the firm from the release of information that could be used against Goldman in private litigation.

With Bhopal still fresh in my mind, it reminds me of other successful corporate strategies to buy themselves cheaply out of a whole lot of trouble.

Underscoring the importance of banking reform

If people haven't lobbied their lawmakers yet on banking reform, some articles from today you might want to read:

You may be unable to reach your lawmakers because they are out collecting contributions from the financial sector. Seriously.

Friday, 11 June 2010

While we’re on the subject

I am in Bhopal. This morning I took an auto (like a tuk tuk) from my hotel in the heart of the old town, over to what was Union Carbide's chemical plant. I wanted to see just how close the plant had been located to a centre of population.

On 2nd December 1984 the plant leaked a substantial amount of MIC (Methyl Isocyanate) into the air. Some 20,000 people died within a few weeks of exposure to the gas, and tens of thousands more are still seriously ill.

Compensation paid by Union Carbide thus far bears little relation to the scale of the ongoing medical need, and Dow Chemical bought Union Carbide with the specific understanding that no further compensation would be payable. There has also been no criminal consequence for Union Carbide's US parent company.

It remains a symbol of corporate impunity.

There is next to no public discussion about the responsibility of banks for the tragic consequences of the financial crisis known to have occurred across the globe. Will the financial crisis be allowed to go down in history as the next Bhopal?

Wednesday, 2 June 2010

"You can't eat money" and other deep thoughts

Andrew and I have been in touch with one another throughout our Nothing Personal project and one thing keeps coming up...this ain't easy work. It's uncomfortable and emotionally fatiguing to talk to folks whose lives have been shattered by the crisis.

I'm tired of living this crisis and talking about it. But we have a lot more important work to do. The events of 2008-2010 have changed my life and the lives of countless others.

Here's a windblown me trying to make sense of it all.



And here's me talking to cows...

Tuesday, 1 June 2010

Beyond the killing fields

DSC_0890

Phoung Rin and Lun Loang married in 1975. They lived in the same village but had never met. This was no traditional arranged marriage; this was one of the 200,000 marriages forced upon young people  by the Pol Pot regime in the mid-Seventies as part of a social engineering program to produce a new generation of farmer-soldiers.

It is a period that Phoung Rin would prefer to forget, I learned,  when I caught up with her tending the family’s cows near their rice paddy. But it also became clear that her marriage is untainted by the circumstances of its birth. I asked her if she and her husband love each other. Of course she said yes. So I suggested that given the circumstances perhaps it had taken hard work and time to find DSC_0898that love. “Actually, no”, she says, “it didn’t take long”. Many of these forced marriages ended in divorce in 1979 when the Pol Pot regime fell. Phoung Rin and Lun Leong chose to stay together.

They have two children: a married daughter aged 20 and working in a garment factory in Phnom Penh, and a sixteen year old son attending school.

Phoung Rin works the family’s two plots of land, growing rice and tending their three cows.

Until he became ill Lun Loang worked as a builder. He got ill around five years ago, but did not become severely incapacitated until a couple of years ago.

When I spoke to him at their home earlier in the day he showed me the pattern of large lumps visible across his body wherever he pulled his loose skin tight. His eyes are dulled. One doctor linked his illness to his liver, but more tests would be needed before there could be any certainty. He showed me a plastic bottle half full of dark liquid that he said contained his medicine, but no one seems to think this is anything more than a palliative.

DSC_0865 Lun Leong spends a lot of time lying in pain on the wooden day bed under the house. When he is feeling up to it, he helps in the fields.

Their crops bring in around US$175 a year – not enough to feed themselves, let alone to cover the medical help they need or to keep their son equipped for his grade 10 studies.

Every few years one of their cows produces a calf that they can sell for US$150. That helps with ad hoc bills. They used to have more cows but sold a couple to cover visits to the hospital.

To cover the bulk of their living expenses they depend upon the income their daughter and her husband send from Phnom Penh. When their son-in-law was working in a garment factory alongside his wife the couple sent Phoung Rin around US$80 per month. The family could get by on this and could even contemplate medical help for Lun Loang. But the global financial crisis has hit Cambodia’s garment industry badly. The sector contracted by some 30% in value in 2009 compared to 2008. In July 2009 the factory where the son-in-law worked closed down, orders having dried up from the company’s crisis-hit principal market: the USA. Now the couple send Phoung Rin just US$25 to 30 a month.

Back in the hut overlooking her field I ask Phoung Rin how she deals with her husband’s illness. She says she has given up hope of them being able to find a cure for him. She cannot afford to do more for him.

There were no visible signs of emotion. No melodrama. I find as I travel from country to country and from story to story that for the people most acutely affected by the financial crisis the feeling of anguish is a rarely afforded luxury.

I asked her what she would do if they had more money again. “I would look everywhere for a cure, of course.”

It turns out it isn’t a cure she has given up on, but the ability to afford one.

DSC_0880

Sunday, 23 May 2010

The garment worker’s daughter

I am not sure what context to give this. I was visiting a garment workers' dormitory in Phnom Penh, looking for people prepared to share their stories of the impact of the financial crisis on their lives. I just saw this young girl at work and asked her mother if I could video her. She is six year's old, and wields a cleaver like an expert. I was torn between admiring her mature dexterity and sheer horror at the idea of a six year old being let loose with a sharp blade. She started showing off a little when I started filming. She was chopping less and being much more careful with her vegetable cutting when I first saw her.