JPIC REPORTVolume 12, Issue 2

September 2010

Inside this issue:

A publication of the OMI Justice and Peace/Integrity of Creation Office

From the Director: Diversity and Interdependence

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News & Happenings

Could the global economic crisisspur debt reform for Africa?

Bees: Important Pollinators

If you are neutral insituations of injustice,You have chosen the sideof the oppressor.If an elephant has its footon the tail of mouse andyou say that you areneutral, the mouse willnot appreciate yourneutrality.

- Archbishop Desmond Tutu

September 2010marked the 9th anniversaryof 9/11 and the secondanniversary of the nearcollapse of the financialsystem on 9/15. A columnthat I read recently in theFinancial Times reflected onthe impact of each eventand suggested that when thehistory of the period iswritten, the long-termimpact of the September15th event will be of muchgreater significance.

The piece argues that 9/15marked the beginning of atransition away from thedominance of the west infinancial matters. Reflectingon the furor that haserupted in the US over theplanned Islamic center nearGround Zero and theattendant acrimony aboutburning copies of the HolyKoran and the Holy Bible, Itseems difficult to agree withthe columnist’s conclusion.

While I was travelling inGeneva, Vienna and Romeduring September as theseanniversaries were marked,I found myself drawn againto the thesis of this article. Iwatched the differentcountries struggling withtheir policies and attitudesabout immigration,integration and diversity.On the one hand, the 9/11

attacks resulted in greatwaves of insecurity andfear in the lives of ordinarycitizens, and subsequentintrusive security measuresand scrutiny, especially forthose crossing borders orusing airports. They alsoprecipitated two majorwars that have beentremendously costly in bothlives and money.

Yet, while the US was strongand resilient enough to leadothers into the wars in Iraqand Afghanistan, theinconclusive results and thecosts of the wars havecontributed to anincreasing awareness of thelimits of its political powerand economic prowess.The financial crisis that cameto a head on September2008 has also clearlyconfirmed its economicweakening, and thefaltering recovery servesto indicate the emergenceof a new and long-predicted multi-polareconomic system.

These reflections lead meto ponder a few pivotalthemes and challengespresented by thecoinciding Septemberanniversaries. Thechallenge presented to usby diversity in so manydimensions of our livesremains startling. How canwe, in communities across

the world, move beyond thesense of threat and fear thatconsume us when weencounter diversity anddifference, and buildbridges to promoteunderstanding and fostercommunity? Are the battlelines that have been drawnabout immigration in manyplaces destined primarily toimpoverish us, destroyingour image of a God ofhospitality?

Interdependence is anothertheme that comes to mind asI look at the shift to a multipolar reality taking place inthe global economy, with anetwork that is alive 24/7.Is it finally penetrating ourpsyches that China hasmoved to being the second-largest economy in theworld and is on a pace topass the US in 15 to 20years? If the financial crisismarks the turning point ofthe West’s dominance ineconomic matters and theemergence of an Asiancentury, are we equippedto engage this emergingface of interdependence?

Will the roots of our identity,cultures and faith be bothreceptive and strongenough to welcome andrespond to an invitation thatcalls us to embraceinterdependence, and tojourney together into thefuture full of hope?

Water: Taken for Granted NoLonger

Energy Legislation

Africa’s Natural Resources

Faith-Based Investors Respondto the Financial Crisis

Resources

Border Enforcement withoutImmigration Reform

Domestic Human Rights Update:Campaign to End the DeathPenalty and NRCAT

Congressional Updates

At the United Nations

Working with Ageing America:Advice to the White House

The Low-Down on New ConsumerProtections

Page 2 JPIC REPORT

News and HappeningsThe OMI Justice andThe OMI Justice andThe OMI Justice andThe OMI Justice andThe OMI Justice andPeace/ Integrity ofPeace/ Integrity ofPeace/ Integrity ofPeace/ Integrity ofPeace/ Integrity ofCreation Office Creation Office Creation Office Creation Office Creation Office coordinatesthe advocacy efforts of theMissionary Oblates of MaryImmaculate on behalf of theinterests of the poor andabandoned in the U.S. and in themore than 65 countries wherethe Oblates are in mission. Theseefforts include serving as aresource for province member-ship, supporting the communityorganizing efforts of the Oblatesin the United States, and co-ordinating the Corporate Respon-sibility Program to insist on justpractices and policies bycorporations in their worldwideoperations. Our work alsoincludes advocacy with theUnited States government andother international institutionson a variety of justice and peaceissues.

U.S. JPIC CommitteeU.S. JPIC CommitteeU.S. JPIC CommitteeU.S. JPIC CommitteeU.S. JPIC CommitteeRev. Bill Antone, OMIRev. Walter Butor, OMIRev. John Cox, OMIRev. Seamus Finn, OMIGary HuelsmannRev. Bill Morell, OMIPatti RadleRev. Bob Wright, OMI

JPIC StaffJPIC StaffJPIC StaffJPIC StaffJPIC Staff

Rev. Séamus Finn, OMIDirector

Christina C. HermanAssociate Director

Mary O’HerronAssociate for GAJPIC Serviceand Corporate Responsibility

George Kombe NgolweAdvocacy Associate

JPIC ReportJPIC ReportJPIC ReportJPIC ReportJPIC Report is a publicationof the OMI Justice and Peace/Integrity of Creation Office391 Michigan Avenue NEWashington, DC 20017

Tel: 202.529-4505Fax: 202.529-4572www.omiusajpic.org

Fr. Tomas Vyhnalek, OMI Appointed VIVAT Representative in ViennaFr. Tomas Vyhnalek, OMI was appointed in July as anofficial representative of VIVAT International at the UNheadquarters in Vienna. The UN in Vienna focuses onDrugs and Crime and Fr. Vyhnalek intends to focus onHuman Trafficking, Migrant Smuggling, Criminal Justice,Prison Reform and HIV-AIDS. All of these are issues thatare of prime interest to the Oblates as well as to VIVAT.The mission of VIVAT is designed to provide opportuni-ties for the “voices of the poor to be heard where deci-sions are taken affecting their lives” (CC.RR 9a)

JPIC Office VisitorsA number of Oblates have visited the JPIC Office in the past several months. P. GiuseppeMammana, OMI (Director of Novices in Guatemala) stopped by Washington to con-nect with JPIC groups. Bishop Bejoy D’Cruze, OMI, DD, (Bishop of Khulna,Bangladesh), briefed JPIC staff on issues affecting Bangladesh. Fr. Godfrey Mpundu,Fr. Freeborn Kibombwe & Fr. Evan Chinyemba (OMI Superior) from Zambia, whowere here for meetings with the Provincial Council, spoke of their support for developinga JPIC outreach to the parish level in Zambia.

Sharif Jamil, a member of the International Water Keepers Alliance and a leader inthe environmental and in-digenous peoples move-ments in Bangladesh, is aclose collaborator of theOblates there. JPIC stafffacilitated several meetingsfocusing on Bangladeshwater and forestry issueswith the ecumenical WaterWorking Group and staffat the World Bank and USAID.

Seamus Finn, OMI, Christina Herman, Gordon Weynand (Senior Energy andEnvironment Officer, Middle East Bureau’s Office of Technical Support),Carrie Mitchell (Acting Bangladesh Desk Officer) and Sharif Jamil at USAID

Fr. Stephen Tully, Director of the Denis Hurley Centre in Durban, South Africa visitedin July to tell us about his work and the work of the Centre to be named for Oblate DenisHurley, Bishop and Archbishop of Durban (1947-1992). Fr. Hurley was a major moveragainst apartheid in South Africa and supporter of human rights in general.

The Denis Hurley Centre, which is to replace the antiquated parish centre next to EmmanuelCathedral in the inner city of Durban, will respond to the plight of many hungry, home-less South Africans and refugees in that area – many with HIV/AIDS. A modern facilitywill make this assistance to the poorest of the poor far easier and more effective.

For more information, please see www.denishurleycentre.co.za

Our most recent visitor was Herman Wainggai, a non-violent advocate for the indepen-dence of West Papua, Indonesia. Mr. Wainggai visited the US to share stories of struggleand hope for West Papuans with NGOs, faith groups and Members of Congress. Mr.Waiggai believes that independence of West Papua would be a major developmentfor democracy in Indonesia.

Volume 12, Issue 2 Page 3

Book Nook

Half the Sky:TurningOppressioninto Opportunityfor Women Worldwide

Reviewed by: Mary O’Herron

Authors: Nicholas D. Kristof and SherylWuDunn. Alfred A. Knopf, New York.2009.

Srey Rath, a Cambodian girl, wastrafficked into Thailand, forced intoprostitution by most brutal means,managed to escape, spent time in aThai prison as an illegal immigrant,and was re-sold into prostitution by thepolice officer in charge of herrepatriation to Cambodia. Sheescaped again and got back toCambodia where she was assisted byAmerican Assistance for Cambodia, agroup that helps trafficking victims.With some counseling, training andfinancial assistance, she now has asmall business. She is one of thefortunate few who have survived suchtreatment, was welcomed home by herfamily and community and given helpto start a new life. Not manytrafficking victims survive; many whodo are not welcomed back home fora variety of reasons, both cultural andfinancial.

This story opens the book. With manypoignant examples, the authors ofHalf the Sky tell about the abuse,misuse and lack of respect for femalesin many parts of the developingworld, especially in Asia and Africa.Culture, religious beliefs, attitudes andpoverty keep them frighteninglyunable to contribute to their societies.Attitudes and behaviors of both men

and women contribute to the idea thatmen should be able to do what theywant with girls and women.

To balance stories of gender-basedviolence, the authors show that womencan be freed to become vibrantlyuseful with the right kind of help.Stories of heroic people andorganizations show how change ishappening in societies across manyareas of the globe.

The enormous scope of the need isgradually being understood; effortsto change things are slowly gettingunder way. This book sheds light onthe raw wound of female oppressionand the harm it does to the world,while offering some suggestions forhealing.

A quote from the Introduction: “Theglobal statistics on the abuse of girlsare numbing. It appears that more girlshave been killed in the past fifty years,precisely because they were girls,than men were killed in all the battlesof the twentieth century. More girls arekilled in this routine “gendercide” inany one decade than people wereslaughtered in all the genocides of thetwentieth century.” (p xvii)

The authors believe that pragmaticarguments though, are moreconvincing than statistics like these. Forexample, they note that a lack ofeducation among women leads topoverty. Many talents and resourcesare lost by not educating females. Theauthors conclude this is simply foolisheconomic policy for poor countries.

The book suggests three things thatcould make a huge difference in the

lives of women especially in Africa andAsia:

• Establish programs that encourageeducation of girls.

• Have a global drive for theiodization of salt. This could helpprevent brain damage for tens ofmillions of children before they areborn.

• Launch a serious campaign toeradicate obstetric fistula andmaternal mortality – to learn why,read the story of Simesh Segaye fromrural Ethiopia. She suffered from thistype of fistula, which causes a womanto have such a stench no one can benear her. After lying in a hut for twoyears, her parents sold their livestock(all of their assets) to finance a journeyto Addis Ababa Fistula Hospital.(pp101-102) The authors describe theheroic founders of this hospital that wasable to help her. Throughout history,millions of women have suffered in thisway, often in terrible isolation.

Chapters on maternal mortality, rape,and the often severe punishmentmeted out to girls and women areheartbreaking, but it is important alsoto know about the many efforts ofpeople to bring about change.

The authors set out to increaseawareness of the abuse of females indeveloping countries and toencourage readers to take action,and they have succeeded. Examplesof ways to help are on their website:www.halftheskymovement.org/get-involved

Highly Recommended

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For more than two decades, theUnited States Congress has tried tostamp out undocumentedimmigration. They have done thislargely through border enforcementefforts while failing to carry outfundamental reform of the brokenU.S. immigration system that is fuelingthe undocumented immigration place.

Convening during the August recessin two separate special sessions, theSenate and House of Representativespassed by acclamation theEmergency Border SecuritySupplemental bill which provides

$600 million dollars for emergencyspending for border security. Thismoney will fund the deployment oftroops, agents and drones at the US-Mexico border. President Obamasigned the new border security billinto law on August 13. Many faithgroups and a number of immigrantadvocacy groups are not pleasedwith this emergency border securityfunding because it fails to address thefundamental problem ofundocumented workers in the UnitedStates.

Border Enforcement without Immigration Reform:Throwing Good Money after Bad By George K. Ngolwe

President Barack Obama had urgedCongress to channel more moneytoward border security in the midstof complaints from Members ofCongress representing the borderand states such as Arizona. It shouldalso be noted that the Obamaadministration has been deportingundocumented immigrants at a higherrate than the last Bush administration;this, according to a new report bySyracuse University’s data researchproject which analyzed Immigrationand Customs Enforcement records.

The claim asserted by somepolicymakers that increasedborder security wouldeliminate undocumentedimmigration fails the test ofreality. The fact is thatincreased border security andthe construction of borderfences have only succeeded inpushing undocumented bordercrossers into dangerous andless-patrolled areas wherethey more vulnerable to

smugglers and harsh desertconditions.

Most experts are saying that thedecline in the number ofundocumented immigrants is closelylinked to the U.S. recession and notto border security programs.Historically, recessions have beenfound to affect undocumentedworkers disproportionately becausethey are more likely to work inindustries with sensitive business cyclessuch as hospitality, construction andmanufacturing.

Police in border communities andborder research projects confirm thatcrime is down in border communities.A newly released poll surveyingborder residents on safety in bordercommunities has people reportingthat they feel their communities areas safe as most other communities inthe nation.

Congressional Democrats arepraising the bill as a building blockfor comprehensive reform. But onefaith leader described the bill asWashington politicians making a$600 million dollar investment in theirpolitical futures to show how toughthey’ve been on enforcement. Weknow that this is not about bordersafety, but about politics, especiallythe upcoming mid-term elections inNovember.

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Volume 12, Issue 2 Page 5

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Congressional Updates At the United Nations

To think that border enforcementalone will fix the currentundocumented immigration isinaccurate. The fact is that almost halfof the 12 million undocumentedworkers in the U.S. originally heldvalid visas, but over-stayed. Andmany have come from other partsof the world, not just Mexico. Thesepeople are largely well-educatedand if legalized, could make agreater contribution to society.

The American people deserve asmart solution to the immigrationproblem. Such an approach requiresa real conversation about dignifiedtreatment of the millions ofundocumented workers in thecountry, and a commitment toaddressing the root causes of illegalimmigration. With the exception ofCongressman Luis Gutierrez’sComprehensive Immigration Reformfor America’s Security and Prosperity(H.R.4321) which has more than 100co-sponsors, no other comprehensivereform legislation has yet beenintroduced in Congress.

An enforcement-only approach tothe broken immigration problem isclearly not yielding the neededresults. Unfortunately, this is a patternthat has been playing out now foryears where the appetite inCongress for border resources andearmarks consistently blocks anyaction for comprehensive reform. Itis time for Congress and the Presidentto propose comprehensive solutionsto the complex problem of thebroken immigration system.

More information, visit our website:http://omiusajpic.org/issues/socialjustice/immigration/

Legislation Introduced toPromote Democracy in

Zimbabwe

In the House of Representatives,Congressmen Payne introduced theZimbabwe Renewal Act of 2010(H.R. 5971), which has beencosponsored by over 35Representatives. Key provisions of theZimbabwe Renewal Act of 2010include bilateral debt forgiveness,establishment of a multi-donor humanrights trust fund, and support for thehealth care, education, agricultureand clean water sectors. Thelegislation maintains targetedsanctions against individuals whoundermine democratic processes andreviews existing sanctions to reflectchanging conditions on the ground.

The current U.S. policy towardsZimbabwe is characterized by theZimbabwe Economic and DemocracyRecovery Act of 2001 (ZEDERA);which is a U.S. sanctions law againstcertain Zimbabwe individuals andbusiness entities. The proposedlegislation is a major step towardimproved relations between the U.S.and Zimbabwe, and hence is worthsupporting.

To become involved or for moreinformation, contact George Ngolweat: gngolwe@omiusa.org

VIVAT representation at the UN hasgrown in the past year. There arenow three full-time representatives inNew York: Sr. Zelia Cordeiro SSpS,Fr. Felix Jones SVD and myself. Fr.John Converset MCCJ and Sr. IlariaBuouriposi CMS work part-time. Fr.Edward Flynn CSSp is now full-timeat the United Nations in Geneva whileFr. Tomáš Vyhnálek OMI representsVIVAT part time at the UN offices inVienna. All of us have taken ondifferent aspects of the work andcoordinate closely, supporting eachother as needed.

In this update, I will focus only on mywork, due to space limitations. Formore information on the broadereffort, please visit the VIVAT websiteor email me at dlkomifi@yahoo.com

Non-Government Organizations(NGO) Committee meetings are vitalto our work. In these, we meet,network and strategize aboutpositions and lobbying. NGOrepresentatives do sometimes havea voice, but never a vote. So our taskis to convey that which our membersconsider important and work to insurethat member States take it intoconsideration. We highlight issuesaffecting those who live in povertyand who are the most oppressed bysystems and governments. As ourmembers number more than 30,000,and are present in more than 120countries, our voice is respected.

Report from Daniel LeBlanc, OMI

(Border Enforcement cont.)

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Campaign to End the Death Penalty

October 10: International World Day against Death Penalty

Since 2003, abolitionists have organized events around the world on this day to say No to the deathpenalty. The focus 2010 World Day against the Death Penalty is to strengthen the trend towards abolitionin the U.S. and towards universal abolition. Find out more at www.worldcoalition.org/worldday

November 8: Texas Judge to Hold Hearing on Death Penalty law

A Judge in Houston, Texas has a planned a hearing to listen to evidence on whether there’s a substantialrisk that the state’s death penalty law allows for the possible execution of an innocent person. The deathpenalty hearing could last at least two weeks, and experts on the death penalty from across the UnitedStates are expected to testify.

November 30: Cities against the Death Penalty

This global action day, also known as “Cities for Life”, is anaction in which cities and capitals around the world light uppublic buildings to support an end to the death penalty.

Learn more at:

Catholic Mobilizing Network to end the use of the death penaltyww.catholicsmobilizing.org

Domestic Human Rights Update:

NM Governor Richardson with Archbishop MichaelSheehan of Santa Fe at the 2009 “Cities for Life – Cities

against the Death Penalty” at the Colosseum in RomeComments, Questions? Email George Ngolwe atgngolwe@omiusa.org

On June 7, 2010 Physicians for Human Rights (PHR) released a report providing evidence of unethical and illegalmedical experiments conducted by the CIA on US-held detainees. The National Religious Coalition Against Torture(NRCAT) is campaigning for a thorough and transparent investigation of these allegations. The Office for HumanResearch Protections (OHRP) of Health and human Services (HHS) has declined to investigate the issue, and insteadreferred it to the CIA itself.

The PHR report reveals that doctors employed by the CIA analyzed the impact and effectiveness of various interrogationtechniques to determine what might be legally permissible – in other words, what techniques might fall just short oftorture. The Nuremberg code established a regime of protections for human subjects and set clear standards forinformed consent of participants in research, an absence of coercion and a requirement for rigorous scientific procedures.Through their willing participation in monitoring and analyzing “enhanced interrogations,” US medical personnel havein recent years violated these vital and long-standing ethical standards.Oblate JPIC is a member of NRCAT and we are asking everyone to call on President Obama and Attorney GeneralHolder to conduct a thorough investigation into the CIA medical experiments on detainees.

Visit: www.nrcat.org for more information. You can also find a link to this action on the OMIUSAJPIC website.Oblate JPIC USA is a member of NRCAT

By George K. Ngolwe

Volume 12, Issue 2 Page 7

Working with Aging America: Advice to the White House By Gary Huelsmann

Gary Huelsmann, MSW, LCSWis the Executive Director ofCatholic Social Services ofSouthern Illinois and a memberof the OMI US JPIC Committee.He writes here about a recenttrip to Washington, DC.

I visited the White House onAugust 20th to discuss the successof a program administered bymy agency for seniors living inrural areas, called the SeniorCommunity Service EmploymentProgram (SCSEP). The WhiteHouse maintains a consistentoutreach to the faith communityon issues of social and economicjustice. In this case, the Office ofPublic Engagement was looking forways to tell some of this program’sgreat poverty reduction andcommunity service stories.

SCSEP is a US Department of Laborprogram created by the OlderAmericans Act, legislation passed in1965 to help reduce poverty amongSenior Americans. This legislation isconsidered the major vehicle forpromoting the delivery of socialservices to the aging population.

Its mission is broad: to help olderpeople maintain maximumindependence in their homes andcommunities and to promote acontinuum of care for the vulnerableelderly. The legislation providesimportant nutrition and transportationassistance.

In the SCSEP program, low incomeseniors receive job training throughemployment in subsidized jobs atnon-profit organizations. In return, thenon-profits get free labor whichenables them to serve more people.

Senior Service America, Inc., in SilverSpring, Maryland, is one of ahandful of national awardees of theSCSEP program. They, in turn, givesub-grants to local organizations, ofwhich my organization, CatholicSocial Services of Southern Illinois, isone. SSA asked us to come to themeeting to share ways the WhiteHouse could get the word out abouthow this program has been helpingboth the seniors and the communitieswhich they serve.

A group of about ten of us discussedways in which we could engage theWhite House in telling the program’ssuccess stories. One idea was for thePresident to tell one of the storiesaround Grandparents Day. After themeetings, the group enjoyed a tourof the White House.

In separate sessions, the sub-granteesbrainstormed about how SeniorService America could engageFoundations to get private money for

programs to help more low incomeseniors. Catholic Social Services (CSS)receives about $900,000 in funding,but needs to raise roughly $100,000in matching cash and in-kind gifts tosecure that federal money. Last fiscalyear (2010) CSS subsidized the workof 140 seniors at 79 host agencies. The value of these volunteer hours tothe groups and communities servedwas roughly $1.5 million. CSS hasdone a lot with its scarce resources,scoring highest in the State of Illinoison the performance measures of thecontract.

The need is great: Southern Illinois ishome to some of the poorest countiesin the US. By 2050, 20% of America'spopulation will be over age 65. Aspeople live longer and social securitybudgets face cuts, programs likeSCSEP will be important indeed.

For more information on SCSEP, visit:http://www.doleta.gov/seniors/

Gary Huelsmann (far left) and the group of social service providers invited to theWhite House in August to discuss programs for Senior Citizens.

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The Low-Down on New Consumer Protections By Christina C. Herman

In an important victory for MainStreet, the Dodd–Frank Wall StreetReform and Consumer Protection Actpassed this summer will result insubstantial new protections forconsumers. The Consumer FinancialProtection Bureau (CFPB) created bythe legislation has both theindependence and authority it needs,despite the legislative compromisesmade. It is expected to be up andrunning in about a year.

The idea for a CFPA originated withElizabeth Warren, Harvard UniversityProfessor and Chair of theCongressional Oversight Paneloverseeing the U.S. banking bailout.In a 2007 article in DemocracyJournal, Warren wrote, “It isimpossible to buy a toaster that has aone-in-five chance of bursting intoflames and burning down your house.But it is possible to refinance an existinghome with a mortgage that has thesame one-in-five chance of putting thefamily out on the street... Thedifference between the two marketsis regulation.”

Warren, a strong consumer protectionadvocate, has been appointed byPresident Obama to set up, but notdirect, the bureau. Her appointmentwas fiercely opposed by Wall Street

and a difficult confirmation battle inthe Senate was expected.

Supporters of the new law are nowgearing up for a tough fight withindustry lobbyists over the details ofthe regulations that will be written bythe Securities and ExchangeCommission (SEC), the FederalReserve and other governmentagencies.

What to expect from the CFPB

The CFPB will be independent. Itsdirector will be appointed by thepresident and confirmed by theSenate, and it will be housed in theFederal Reserve but not subservientto it. The bureau’s rules could beoverridden if two-thirds of the newFinancial Stability Oversight Councildecided the proposed rulesthreatened the safety, soundness orstability of the U.S. financial system.

The bureau will write and enforceconsumer protection rules for mostloans, including credit cards, privatestudent loans, and mortgage. It willenforce those rules for banks andcredit unions with assets greater than$10 billion. This includes, for example,the authority to require credit-cardissuers like Citigroup to reduce interestrates and fees, or mortgage lendersto give clear information to borrowers.

While the agency’s rules apply to allbanks and lenders, enforcement ofthose rules for institutions with less than$10 billion in assets will be carried outby existing regulators.

The CFPB will operate a toll-freehotline for borrowers to reportproblems with a loan, and it will havethe power to crack down on deceptivepractices and hidden fees. State

regulators will also have the right toenforce new federal rules, addinganother layer of protection.

Financial Products and Practices

Private student loans: Up to now,students borrowing on the privatemarket for college tuition have beenin treacherous territory. These loanshave typically been made withvariable rates with no cap, nodeferment options, no affordablepayment plans, no loan forgivenessprograms, and no cancellation rightsin the cases of death or disabilityprovided by federal loans.

The CFPB will write rules that applyto all private student loans, includingthose made by big banks, nonbanklenders like Sallie Mae, and by careercolleges that offer private loans. CFPBwill enforce those rules for all privateloans provided by all nonbanks andby banks with more than $10 billionin deposits. The current regulator ofsmall banks and credit unions will beresponsible for enforcing the CFPBrules.

In addition, the bill creates a PrivateStudent Loan Ombudsman to assistborrowers, analyze complaints andmake policy recommendations toCongress and the Administration.

Arbitration: Increasingly in recentyears, forced arbitration clauses havebeen hidden in the fine print ofconsumer and investment contracts.These strip the consumer and investorof the right to file claims against majorWall Street firms and businessesranging from cell phone and creditcard companies to home builders andnursing homes. Just by taking a job orbuying a product or service,

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Volume 12, Issue 2 Page 9

Faith Based Investors respond to the Financial Crisis By Seamus P. Finn, OMI

As faith-based investors, we havejust completed our most successful yearof advocacy of the last 25 years withthe US Congress and financial servicescorporations, especially banks.

The Missionary Oblates, with othermembers of the Interfaith Center onCorporate Responsibility (ICCR), filedResolutions calling for greatertransparency on derivatives tradingwith four major actors: JPMChase,Goldman Sachs, Bank of Americaand CITIgroup. Our resolutions weresupported by more that 30% ofshareholders, with a high of 39.09%with Bank of America.

Our resolution, which focused onderivatives - specifically disclosure ofbank policies on collateral andprotecting their clients’ capital -obviously resonated with many othershareholders. These included pensionfunds and institutional investors, as wellas those professionals who makerecommendations about whichresolutions merit support.

The fact that the U.S. wasexperiencing the longest (2007 –2009) and deepest recession (interms of job losses), since WW11,coupled with the 30% plus decline inmost investment portfolios, created an

almost tsunami-like climate of supportfor our work.

The past two years of meetings andaccomplishments with these financialinstitutions represent a highpoint interms of support from the investingcommunity, attention by the mediaand serious engagement by themanagement of these corporations.Over the past 25 years, we havebeen asking financial companies totake seriously the social purpose ofeconomic activity, the promotion of thecommon good and specifically theirresponsibility for ensuring a financialsystem that is reliable, accountableand transparent. Our engagement

over time has addressed thefollowing set of issues: lendingpolicies and criteria; capital flight;predatory lending; credit cardpractices; off balance sheetliabilities; securitization modelsand capital adequacy ratios.

Historically, we have chosen whichissues to address with thesecompanies based on studies and

personal accounts of the negativeimpacts of their policies and decisionson the poor and the marginalized indeveloping countries across the world.We have also been deeplyconcerned about the structure andoperation of the international financialsystem. Income and wealth inequalitybetween countries and within regionshas continued to increase in recentdecades and a fifty year-pluscommitment to development by theworld’s governments has failed toaccomplish most of its major priorities.

For us, this failure has been both astructural and systemic issue, and adirect result of the practices of majorfinancial institutions. They havecontinuously claimed to have their

clients’ best interests as their numberone priority. Yet they have shown littleappetite for addressing majordevelopment priorities, such as theMillennium Development Goals thatinclude access to credit and capital forthe poor and the underserved. Onlyin the past decade have banks begunto address the lack of capital formicro finance, the provision of whichhas proven to be important inaddressing the credit needs of thepoor across the world.

The intersection between theresponsibility of governments andregulators to provide a framework foreconomic activity and a foundation fora stable financial system, on the onehand, and the business models andpolicies of the major corporate actors,on the other, is another urgent priorityfor us. The recent crisis has highlightedthe tension that exists. The coming yearwill present numerous opportunities toaffect how these dynamics play out.Because citizens rely on a stable andsmooth functioning system for thenumerous activities of daily life, thedesire of private corporations to makea profit for their investors must bebalanced by government, with itsresponsibility to promote the commongood.

As faith based investors, customers,clients and citizens, we must continuein our efforts to shine the truth of thegospel on the ongoing process andevolving procedures by participatingactively in the discussion of proposedfinancial rules. In this manner, we canrealize our commitments to be insolidarity with the poor and themarginalized, to safeguard humandignity and to promote the globalcommon good.

ICCR members Sr. Barbara Aires, Joe La Mar, MM,Seamus Finn, OMI, Cathy Rowan and Kate Walshheading into the Goldman Sachs AGM.

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Sub-Saharan Africa alone has over $231 billionin external debt. (Photo Credit: UK DFID)

Will the global economic crisisbring together both developed anddeveloping nations to create oversightfor foreign lending? This is the hopeof many advocacy groups calling fora United Nations debt arbitrationmechanism.

In a round table meeting in New Yorklast week, advocate groups discussedthe need to address Africa’s worseningdebt crisis. According to the mostcurrent numbers from the IMF andWorld Bank, sub-Saharan Africa hasover $231 billion in external debt.Though the region receives $10 billiondollars in aid per year, it loses morethan $14 billion in debt paymentsannually.

Collins Magalasi, Executive Director ofthe African Forum and Network forDebt and Development (AFRODAD),said foreign debt was cripplingAfrican countries.

“The issue of debt is one of the biggestobstacles in development on the

continent. We know that debtcan be legitimate and it canalso be illegitimate.”

As the Millennium Developmentten-year anniversary summitapproaches in September,AFRODAD will be working withJubilee USA Network, anAmerican organization thatadvocates for debtcancellation in impoverishedcountries in the developingworld.

At present, there is no UN agencyproviding specific oversight of debtdisputes. The United NationsCommission on Trade andDevelopment (UNCTAD) has includedin its charter principles to governborrowing, but does not includespecific framework to handle disputesthat arise when a country is unable tomake payments on its loans.

Magalasi stressed that the purpose isnot to question whether or not countriesshould be borrowing. “That’s not ourrealm,” he said. “What we’re askingis: if a county is unable to meet theirobligations and wants to appeal theirdebt, is there a third-party at theinternational level to listen or no? Rightnow is the answer no.”

Africa’s debt crisis is illustrated mostvividly in countries like Malawi, whichspends 40 percent of its GDPrepaying foreign creditors and15percent on its healthcare andeducation combined.

With Greece’s debt woes dominatingbusiness headlines in Europe andAmerica, AFRODAD believes there isan opportunity for developing nations

to gain support from developednations for debt reform.

“Much of the discussion on vulturecreditors has been quelled in the hallsof power because it only applied toAfrica and the third world,” saidMagalasi. “Now, with developedcountries in the West feeling theirwrath as well, maybe there can bepolitical will to push this change.”

While it is unclear if Greece’s woes willprovide enough impetus to bringEurope and America to call for a UNarbitration mechanism, some thinkChina’s increasing growth as a creditornation may raise enough concern tohelp bolster efforts for reform.

Since 2004, China has pumped over$14 billion into Africa, providingcapital for many much-neededinfrastructure projects. However,China’s relationship with thegovernment in Sudan despite ICC warcharges against Sudanese PresidentOmar al-Bashir has many weary ofthe giant’s presence on the continent.

“China’s move is massively scarybecause they have shown no regardfor human rights and conditions in thecountries,” said Magalasi. TheAFRODAD executive stressed thatweaknesses of African governancealso played a role in the relationshipwith China. “Many leaders loveChinese aid because it is easier thandealing with the responsibilities thatcome with Western aid.”

The increased investment in Africa hasprovided tensions within Westerncreditor nations of the Paris Club ofwhich China is not a member. The Club,an informal group of 19 creditor

By Leslie PittersonCould the global economic crisis spur debt reform for Africa?

Page 12 JPIC REPORT

More than one billion people lackaccess to safe drinking water and overtwo billion to adequate sanitation.Millions die each year frompreventable water-related diseases.Even in the US, a relatively water-richnation, resources are diminishing.There have been severe droughts,particularly in the West and theSoutheast. Even the Great Lakes,which hold a fifth of the planet’s freshwater, have been hit by invasivespecies and polluted by toxic wastes,storm water overflows, sedimentationand runoff from sprawling shorelinedevelopment. Our ageing waterinfrastructure is beginning to crack.Globally, pollution, misuse, overuseand lack of infrastructure - problemsnow compounded by climate change- have caused an intensifying crisis.

It seems as though there should beplenty of water – this is, after all, the‘Blue Planet’. But only 3% of the earth’swater is freshwater, and most of thatis locked up in polar ice caps, glaciersor is deep underground - andinaccessible. Lakes, rivers, marshes,aquifers, and atmospheric vapor – inother words, available fresh water –make up less than one per cent ofthe earth’s total water. People aloneare now using more than half of theaccessible runoff, and demand for

water continues to grow rapidly. Thisdoesn’t leave much for the rest ofcreation. In many areas, water usealready exceeds the ability of nature

to recharge supplies. By 2025, thedemand for water around the worldis expected to exceed the availablesupply by fifty-six per cent.

Groundwater is being used atunsustainable rates. Over-pumping, orextracting water faster than theunderground systems are able torecharge, has led to plummetingwater tables, not only in the MiddleEast and northern Africa, but also inChina, India, Iran, Mexico, and theU.S. The Ogallala aquifer, one of theworld’s largest, stretches under partsof eight states in the central U.S., fromSouth Dakota to Texas. It is truly “fossilwater,” having been collected theresome 10,000 years ago. But theaquifer is being pumped at alarmingrates. Between the early 1900s, whenthe Ogallala was first tapped for

Water in the Corporate Sector

Water, not surprisingly, is a key issue for beverage companieslike Coca Cola and Pepsi Cola. Pepsi Cola last year adopted apolicy recognizing water as a human right - a significantdevelopment that surprised and pleased socially responsibleinvestors. The company is now determining exactly what this

means in real terms.

The Interfaith Center on Corporate Responsibility (ICCR) has been in dialogwith Coca Cola on water use since 2004. The Missionary Oblates currentlyleads this dialog with 37 faith-based and socially responsible investors. CocaCola has decided, for now, against recognizing water as a human right, but isactively looking at ways to decrease water use in its supply chain – most ofwhich is agricultural - think sugar cane. At the same time, the company needs todo more to respond to communities negatively affected by its operations inwater-stressed and water scarce areas. Coca Cola India has run into problemswhere the sheer size of its operations has placed a huge demand on localwater resources. Persistent complaints of rapidly dropping water tables in placeslike Kaladera, India - where Coke set up a bottling plant some ten years ago- raise serious questions about who gets access to limited water supplies andhow to manage competing demands.

Many large companies are working to conserve their water use, it is also truethat many companies are inadvertently betting on water that, in the comingdecades, might no longer be available. Water is increasingly a part of ourinvestor dialogs with companies, with ICCR members raising concerns aboutthe impact of a corporation’s water use on ordinary people.

irrigation, and 2005, the water tabledropped by more than 150 feet insome parts of Texas, Oklahoma, andKansas. The raising of crops hasbecome uneconomical for some GreatPlains farmers, and further depletionscould have substantial ripple effectson billions of people around the worldwho depend on American farmproducts.

Globally, 70 percent of withdrawalsfrom rivers and groundwater is usedfor agriculture, 22 percent for industry,and the remaining 8 percent forhomes and municipal use. So, personalwater use – even among relativelyprofligate US households – is relativelysmall. But this is deceptive. Our waterfootprint is actually much largerbecause of the water embedded inthe products we consume. And, water

Water: Taken for Granted No Longer By Christina C. Herman

Volume 12, Issue 2 Page 13

use around the world is uneven,with some of us using muchmore than others. Although aperson can manage for a fewdays on a gallon or two a day,an adequate supply of cleanwater is about thirteen gallonsper person per day. Onaverage, people living in theUS and Canada consume morethan 150 gallons a day fordomestic and municipalpurposes – which doesn’t includeagricultural and industrial uses.In the UK, people are fine with goes: consider a quarter-pound

hamburger (470 gallons) or a cottonT-shirt (520-700 gallons). Treasurethat cup of coffee in the morning; itrequired 1,120 cupfuls of water toproduce. Given these figures, it’s nosurprise that demand for water isexceeding the supply.

A cup of coffee requires 1,120 cupsof water for its production.

Yet solutions do exist, and as withenergy reduction, there is a lot of low-hanging fruit. Hydrologists estimatethat as much as 60 percent of thewater extracted from aquatic systemsfor human use is simply wasted—lostto leakage, evaporation, inefficientappliances, and human carelessness.Changes in technologies and ineveryday behavior could slash thatnumber in half. Affordable water-saving technology could reduce theamount of water used in irrigation, oneof the biggest users of water, by 50to 70 percent globally. In the US, wecould begin by shifting existingsubsidies for agricultural water intosupport for low flow or alternateirrigation.

Installing water-efficient appliancesand fixtures, fixing leaks, refillingwater bottles from the tap,landscaping with native plants, andgenerally being more conscious aboutwater use would save a lot of water in

the home. Beingaware of the impactof our consumption –and limiting it – is oneof the most importantthings we can do. Thelatest WorldWatchInstitute Report,T r a n s f o r m i n gCultures: FromConsumerism to

1 “Blue planet blues: demand forfreshwater threatens to outstrip supply.How can we meet the needs of all ofEarth’s species?”; Natural History, Nov,2007 by Eleanor J. Sterling found at: http://findarticles.com/p/articles/mi_m1134/is_9_116/ai_n21092821/?tag=content;col1

about one-fifth as much.

Water is local, so how is the water crisistruly global? Rather, how does ourliberal use of water in North Americaaffect people living in countries withless abundant supplies? The answerto this lies in our global trade in goods.“If agriculture and industry account formore than 90 percent of water usage,our closets, cupboards, desks, andrefrigerators are filled with what hasbeen termed “virtual water”: productsthat require water for their growth,manufacture, and packaging. Thoseproducts now come from all over theworld, including from places withlimited water resources.”1

It takes more than fifty gallons ofwater to produce a single cup of milk.That’s modest as virtual water content

A sprinkler sprays a field near Hoxie, Kan. Water for GreatPlains irrigation comes from the Ogallala Aquifer, a vast under-

ground lake that is being drained at an alarming rate.

Sustainability, is anindispensible guide tounderstanding how

we can shift from a society rooted inconsumption by shifting our culturalassumptions. The world’s religionshave a vital role to play in this process.

At the societal level, there is much wecan do to replenish local watersystems. First, we should restorewetlands and refrain from destroyingexisting ones. In our cities and towns,we can install green roofs to absorbrainwater and provide needed birdhabitat. The use of porous pavementwould enable water to seep back intoaquifers and reduce the need forexpanded and expensive storm waterrun-off treatment systems. Water thathas been treated but does not reachdrinking-water standards can be, andincreasingly is being, reused byindustry and municipalities. Rain canbe saved and used by households.Waterloo, Ontario has given out40,000 rain barrels; the city now uses12.7 million gallons less water a year.

Last but not least, consumers candemand that industry and agricultureconserve water through the choices wemake, both in terms of what we buy,and what we don’t. Our choices aremany – once we stop taking water forgranted.

Page 14 JPIC REPORT

Bees: Important Pollinators that Need our Help By Mary O’Herron

About one-third of all food crops in the world depend on insectpollination. Throughout history, bees have traditionally been the majorpollinators. Unhappily, the number of bees has dropped dramaticallyin recent years. The causes are unclear, but a combination of severalfactors seems to be responsible. Without bees as pollinators, crops areunable to produce their fruits, so this is a serious problem, especially ifthe decline continues.

Some likely factors:- the increased use of pesticides, which kill all insects where used- chemical fertilizers - used in place of rotation of crops, with theresult that habitat is reduced- habitat shrinkage: areas that have been denuded of plants that support bees; this is caused in part by development(land-use changes) and partly by mono-crop agriculture, especially when combined with the heavy use of pesticidesand other chemicals.

Some farmers are using creative measures to encourage habitat for bees by planting flowers that attract bees neartheir crops. Other farms import bees when the pollination of their crops is needed.

Suggestions to encourage bees and other pollinators:

1. Plant flowers known to attract bees. It is a good idea to plant a variety of flowers so that something is bloomingthroughout the season, insuring a constant source of nectar and pollen for bees. See www.pollinator.org orwww.xerces.org to find plants for your area as well as hints on habitats that encourage their wellbeing. A happyspin-off from encouraging bees is the increase of butterflies in the garden.

2. Watch the use of pesticides on lawns or gardens. If used, spray after dusk when bees are less active. Usechemicals that target the insects you are going after, e.g., mosquitoes rather than all insects.

3. Avoid use of weed killers and other herbicides that also harm insects.

4. Eat organic foods because organic farms tend to use methods that encourage pollinators.

5. Support local beekeepers by buying their honey or other products.

Volume 12, Issue 2 Page 15

Energy Legislation that Reduces CarbonEmissions while Benefitting the Poor

By Christina C. Herman

Legislation needed to reducecarbon emissions and slow climatechange is essential to avoid climatecatastrophe, but sadly is caught up inbusiness as usual in Congress. A Billwas passed in the House last year, buta Senate version has stalled. Lackingthe 60 votes needed to pass anymajor legislation in today’s bitterpolitical climate, Senate MajorityLeader Reid decided during thesummer against bringing any bill tothe Senate floor that would limitgreenhouse gas emissions. With mid-term elections looming and therecession hitting many hard,legislation leading to higher energycosts is just not going to happen.

It wasn’t supposed to work out thisway. With significant majorities inCongress, a president promisingaction, evidence of global warmingintensifying and favorable publicopinion on their side, manyenvironmentalists believed theirpolitical stars had finally aligned. Atthe height of the legislative push in2009, pro-environmental groupsspent a record $22.4 million onfederal lobbying efforts. This wastwice the average expenditurebetween 2000 and 2008. Yet, theoil and gas industry outspent themeight fold - channeling $175 million(easily an industry record) intolobbying according to an analysis bythe Center for Responsive Politics.

Proponents of urgent action on climatechange now realize that the only wayto win over Congress is throughgrassroots mobilization. Industry issimply too well-funded. But groupsalso need to agree on the legislation.

Major environmental groups havebeen backing the Kerry-Lieberman

American Power Act, a Cap andTrade proposal. The Bill sets a cap onthe amount of carbon that can beemitted and allows industry to buyand sell carbon permits - hence ‘cap’and ‘trade’. The price for permits risesover time, encouraging a shift tocleaner energy. Low-income groupswould receive help to offset risingenergy prices. But the legislation hasbeen criticized for its numerousindustry give-aways, and it would behard to monitor. A factory in the UScould continue to emit CO2 but ‘offset’its emissions by funding cheaper waysto lower carbon elsewhere - say in

Brazil, through forest conservation.The problem is that what is on paperdoesn’t aways match reality. AndWall Street traders stand to make afortune by trading the permits, withno sure benefits in carbon reduction.

Concerned that Cap and Tradewouldn’t be effective, faith groups,including the Oblate JPIC Office, havejoined an array of organizations andindividuals from across the politicalspectrum in backing a simpler, citizen-friendly bill introduced by SenatorsMaria Cantwell (Dem-WashingtonState) and Susan Collins (Rep-Maine).

Their proposal, called the CarbonLimits and Energy for AmericanRenewal (CLEAR) Act is a Cap andDividend measure that would alsoslowly increase the cost of greenhouse

gas emissions. But only producers andimporters of oil, gas and coal wouldbuy the auctioned permits. Thelegislation lets the marketplacedecide what mix of conservation andrenewable energy alternatives wouldbe favored. By 2050, the bill wouldachieve an 83% reduction (over2005 levels) in global warmingpollution, which is what scientists saywe need to target to avoid extensiveand expensive climate disruptions.

The CLEAR Act is also concerned aboutthe impact on ordinary people of thismore expensive energy. 75% of themoney raised from auctioning thepermits would be given back toconsumers directly each month onan equal per capita basis to offsetincreased energy costs. 80% of theAmerican public would incur no netcosts and the lowest incomepopulation would receive netpositive benefits. The remaining20% percent – the highest incomeearners (the most profligate energyusers) – would see less than a 0.3%decrease in income.

The remaining 25% of auctionrevenues would go into the CleanEnergy Reinvestment Trust Fund topay for additional greenhouse gasemissions reductions, low-carbonenergy investment, climate changeadaptation, and related regionaleconomic adjustment projects.

The stakes are far too high to risk notgetting this right. A video on SenatorCantwell’s website offers astraightforward explanation of theCLEAR Act. Learn more at http://can twe l l . s e na te .gov/ i s s ue s/CLEARAct.cfm. Look for opportunitiesto take action on this legislationthrough our JPIC website and monthlyAction Alerts.

During my brief visit to Zambia,Congo (DRC) and Malawi in the earlysummer of 2010, I saw and heardabout the opportunities as well as thechallenges presented to manycountries by the blessing of naturalresources. As the demand for energyand the thirst for minerals grow acrossthe world, the African continent hasattracted plenty of attention. Thecombination of increased demand,new technologies and greateraccessibility is pushing governmentsand communities to craft and adoptdevelopment plans at an acceleratedpace.

Countries are challenged in thiscontext to come up with plans that takeadvantage of the resources within theirborders while respecting both the localcommunities that will most immediatelybe affected and the need to protect

the environment for futuregenerations. They alsoface the difficulty ofdeveloping plans for theprudent integration of thecompensation received forthese exhaustible resourcesinto their annual budgetingprocess.

By Seamus P. Finn, OMI

Finally, since the resourcesare not found uniformlyacross any nation and theimpact of their extractionoften falls unevenly oncommunities and citizens,those most directlyaffected are challenging

Seamus Finn, OMI with Freeport McMoRan employees MarkHardin and Shari Knoerzer at the Tenke Fungurume Mining in

Lubumbashi, Democratic Republic of Congo in June 2010

Africa’s Natural Resources

their governments to address fairly thehuman rights and other issues thatemerge.

The engagement and participation ofall stakeholders in this complex andimportant process of decision making

is extremely important. Governments,companies and nongovernmentalorganizations must continue to developnew tools and mechanisms to improvethe depth and the transparency ofthese negotiations, while respectinglocal customs, traditions and culture.

Page 16 JPIC REPORT

(New Consumer Protections cont.)

Consumers won on this issue. TheFederal Reserve will get authority tolimit interchange, or “swipe” fees thatmerchants pay for each debit-cardtransaction. Retailers can refuse creditcards for purchases under $10 andoffer discounts based on the form ofpayment. Merchants will be able toroute debit-card transactions on morethan one network, which will providecompetition in a previously non-competitive market. But the billexempts lenders with assets of lessthan $10 billion, or 99 percent of U.S.banks. Electronic benefits transfer(EBT) and other prepaid cards are alsoexempted.

Thanks to Americans for FinancialReform for much of the information inthis article, as well as for their tirelessadvocacy for the rights of ordinaryconsumers.

individuals have been forced to giveup their right to go to court if they areharmed by a company. Arbitratorsaren’t required to take the law andlegal precedent into account in makingtheir decisions and there is no appealor public review of decisions to ensurethe arbitrator got it right. Now, the SECand CFPB, after study, can ban forcedarbitration within their respectivejurisdictions.

Auto loans: Most car dealers makethe bulk of their profit not from the saleof the cars but from car financing –three-quarters of new cars arefinanced or leased through a dealer.Much in these deals is notadvantageous to the buyer. So it isunfortunate that car dealers –probably the least trusted and mostcomplained about businesses in moststates – managed to win an exemption

from oversight by the CFPB. Under thenew law though, the Federal TradeCommission (which already overseesdealers) can now operate under amuch quicker and simpler rule-makingprocedure and has beefed-upauthority to look intoc a r - f i n a n c i n gcomplaints.

Swipe fees: Visa Inc.and MasterCardInc., the world’sbiggest paymentsnetworks, setinterchange rates and pass thatmoney to card-issuers including Bankof America and JPMorgan.Interchange is the largest componentof the fees U.S. merchants pay toaccept Visa and MasterCard debitcards. The fees totaled $19.7 billionand averaged 1.63 percent of eachsale last year.