Thursday, April 24, 2014

What to do when you don't trust El Salvador's courts or government?

Lauren Carasik argues that World Bank Tribunal Threatens El Salvador's Development on Al Jazeera America.
El Salvador’s struggle to maintain control over its development is being keenly watched. The outcome of this dispute will set an important precedent about the reach, legitimacy and costs of investor protection provisions in existing and future trade and investment agreements. Resistance to the investor-state dispute resolution framework is animating opposition to the proposed Trans Pacific Partnership, currently being negotiated under a shroud of secrecy, and the Transatlantic Trade and Investment Partnership.
The people of El Salvador and their government do not want mining to ravage their landscape, degrade their environment and compromise their health. Stripping nations of their right to economic and environmental self-determination by privileging investors’ rights through international arbitration mechanisms is undemocratic and disempowers communities that should derive some benefit from development in their neighborhoods. Corporations by nature owe their allegiance to shareholders, not good environmental stewardship or sustainable development. Allowing Pacific Rim to circumvent local mechanisms and hide behind an international tribunal will set a costly precedent for the global community.
Meanwhile Nathan Weller of EcoViva looks at Bending Aid Toward Business in El Salvador.
As was the call made on the floor of the U.S. Senate last September, the United States and its agencies like the MCC need to support policy reforms that enable rule-of-law in El Salvador to empower the public sector, not sideline it to expedite narrow private interests. This includes proper legislative oversight over an agency like PROESA, limiting its power as a technical assistance branch of PPPs, and being cautious in opening the flood gates to PPPs through increased funding, and increased risk exposure for a burgeoning public sector. Local, municipal governance structures also need to be prioritized. Alongside national Ministries, local governments should be empowered to, if they so choose, propose and oversee their own PPPs for the good of their distinct local constituencies.
In the Bay of Jiquilisco, Usulután, as well as in La Paz and San Vicente, civil society is forging a coalition with local governments to manage sustainable, inclusive coastal development. The United States and FOMILENIO II should enable these efforts, each already supported by the Salvadoran government through its “Territorios de Progreso” program and National Coastal Zone strategy. This will be especially important with new and unprecedented tourism development being planned for the region´s important coastal areas like the Bay of Jiquilisco.
We often speak about the weakness of El Salvador's (and the region's) courts and corruption throughout government agencies. The goal is always to make government more transparent, reduce corruption, and strengthen the integrity of the local and national courts. I don't know. I guess I see the move to an international tribunal and to the creation of an agency outside of the government potentially reflecting surrender.

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