No. 9 - December 2007

Greetings and happy holidays!

Welcome to the December 2007 issue of the Global Public Policy Institute (GPPi) newsletter. A lot has happened here at GPPi in the past three months and we are happy to provide you with an update as we move into 2008. We are also pleased to announce the launch of two new research programs which will begin in January. The first, "Raising the bar: Towards enhanced coherence and cooperation in transatlantic governance of disaster relief and preparedness", will build upon GPPi's ongoing work in the humanitarian sector. The second, "Changing rules of the game: Global energy governance in the 21st century" will expand upon GPPi's energy research program which began with our "Transatlantic Energy Security Dialogues" series.

Our newsletter appears three times a year to keep you informed about the institute, to post our newest publications, and to share interesting recent news on global public policy-making. In this edition's "Global Issues in the News" section, we focus on ethics at the United Nations as well as private philanthropy in development. As always, more information can be found on our homepage at www.gppi.net.

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Research

Raising the Bar
Towards enhanced coherence and cooperation in transatlantic governance of disaster relief and preparedness

Changing Rules of the Game
Global Energy Governance in the 21st Century

The Role of Private Donors in International Development

Learning to Build Peace?
The United Nations, Peacebuilding and Organizational Learning

Socializing the Dragon?
Europe’s China Policy and Global Security Governance

The New Protectorates
International Administration and the Dilemmas of Governance

The Emergence of a European Strategic Culture
The Construction and the Functioning of the European Security and Defence Policy

Crisis and Change
The UN Secretariat and the Quest for Accountability

Consulting

Quantitative Assessment of German Capital Flows to Developing Countries

Design and Implementation of a Working Group on "Private Sector Engagement in Development: Towards Impact and Sustainability"

Development of a Monitoring and Evaluation Framework for the Gender Standby Capacity Project (GenCap)

External Review of CGIAR Challenge Programs

Networking United Nations Private Sector Focal Points

Debate

Transatlantic Dialogues on Humanitarian Action

Transatlantic Energy Security Dialogues

Global Atlanticists

Topic 1

1. Secretary-General's Bulletin: United Nations System-Wide Application of Ethics: Separately Administered Organs and Programmes
From: United Nations Secretariat, 30 November 2007

Summary: In this bulletin from United Nations Secretary-General Ban Ki-moon, the same ethics-related protections have been extended to employees of United Nations funds and programmes as those already afforded to Secretariat staff. This bulletin was the result of a 26-27 October meeting of the Chief Executive Board which created a framework within which a unified set of ethical standards and policies would be established by the United Nations Ethics Office and applied as of 1 January 2008.

This bulletin requires that each Fund or Programme establish an ethics office that functions independently; provide confidential advice; administer a financial disclosure programme and a “protection from retaliation” policy; and develop standards, training and education on ethics issues. The United Nations Ethics Committee would review the annual reports issued by the ethics office of each Fund or Programme and make recommendations.

The ultimate goal, according to the bulletin, is to cultivate and nurture a culture of ethics, integrity and accountability, and thereby enhance the trust in, and the credibility of, the United Nations, both internally and externally.

2. Press conference by Director of Ethics Office on Secretary-General's New Bulletin 
From: United Nations Department of Public Instruction, 3 December 2007

Summary: Following the issuing of the Secretary-General's bulletin on the United Nations system-wide application of ethics for separately administered organs and programmes, Robert Benson, Director of the United Nations Ethics Office, held a press conference to discuss specific aspects of the bulletin.

Benson explained that, as Chair of the Ethics Committee, he would provide “functional leadership” to ethics officers so as to ensure consistent delivery of ethics-related services.  An “Ethics Safety Valve” would allow the head of the ethics office in any fund or programme to seek guidance or intervention from the UN Ethics Office on ethics-related matters. Currently, Benson stated, the United Nations Development Programme (UNDP), World Food Programme (WFP), United Nations Children’s Fund (UNICEF), and the United Nations Population Fund (UNFPA) already have designated ethics officers. As a result of this bulletin, Benson explained, the Ethics Committee must approve the final ethics policy of each fund or programme in order to ensure consistent application.

With respect to the problems that made ethics reform at the UN necessary, Benson clarified, a case had been brought to his attention of an individual seeking protection against retaliation. However, he stated that he was not allowed to act on the case due to a lack of jurisdiction despite being a clear case of whistleblower protection. With the establishment of individual ethics offices, cases such as these could theoretically be handled in a more efficient way.

3. New UN Ethics Guidelines Greatly Misleading
From: Global Accountability Project, 4 December 2007

Summary: This release from the Global Accountability Project (GAP), a leading whistleblower protection organization, argues that the new bulletin from the Secretary-General "complicates and confuses the issue, creating an entirely new level of bureaucratic dispute, delay, cost and inefficiency for those who report corruption in UN operations and suffer retaliation as a result".

Bea Edwards, GAP International Program Director, states that “[t]his bulletin replaces a single Ethics Office, structurally independent of management in the Funds and Programs and responsible for applying a uniform set of ethical standards, with proliferating ad hoc internal ethics offices, operating at the pleasure of the heads of these agencies...a committee will now negotiate definitions of ethics to be applied system-wide...such a dubious process could take years and does not bring justice to whistleblowers. Nor does it protect them from retaliation or address the issue of corruption”. Furthermore, GAP argues, [the bulletin] sets no parameters for establishing the new ethics offices and the new setup will promote "costly ethics offices throughout the system without independence, credibility or standards."

Topic 2

1. Charity no longer begins at home
By: Sarah Murray, Financial Times, 10 December 2007

Summary: This article details some of the changes occurring in the philanthropy sector, specifically four main trends: the globalization of philanthropic activities; donor demand to see where their money is going and to get feedback on the results; technology facilitating the donation as well as the spread of information on the needs and the benefits of the funding; and increasing engagement by individuals and corporations.

The process globalizing philanthropy, according to the article, is due to technology which provides access to information about problems in once-remote parts of the planet coupled with increased travel to these regions. The article argues that while the charitable sector's geographical boundaries are breaking down, the way donors give is also becoming more structured. Today’s philanthropists, the article explains, want to do more than simply hand over their money, they want to become involved in the creation and design of programs, track their progress and measure the difference that their money has made.

The article stresses that these changes result from a number of reasons, for example, many of the new donors made their money through global business and want to give back; increased interest in overseas giving due to the 2004 Asian tsunami and the 2005 Pakistan earthquake; and increased activism of public figures such as Bill Gates and Al Gore. In addition, the article states, the emergence of new wealth in emerging markets such as India, China, Russia and Brazil means that the funds available for philanthropic projects are greater than ever. Furthermore, the article explains, corporations are increasingly engaging in philanthropy and introducing market-based tools and techniques as well as forming innovative partnerships with non-profits.

2. Giving...and Receiving
By: Rachel Emma Silverman, Wall Street Journal, 10 December 2007 (subscription required)

Summary: The idea of program-related investing (PRI), this article states, is to make investments that further a foundation's charitable goals and help foster a greater sense of responsibility among the beneficiaries, and, since the investments may provide a return, boost a foundation's impact as the money gets recycled into other projects. In this respect, this article argues, charitable foundations increasingly expect their money back, with interest.

Foundations with an international scope, the article explains, often use PRIs to help make microfinance loans, or tiny loans to poor entrepreneurs in developing countries as the financial benefits for using PRIs are numerous. For example, they help meet certain tax-code rules;  include the ability to recycle returns on the loan or investment into other philanthropic projects; and some foundations feel that making loans or expecting investment returns encourages a greater degree of accountability than simply making a grant. For the recipients, the article states, there are also benefits apart from the capital received, including the opportunity to demonstrate their creditworthiness and fiscal responsibility

Lastly, the article explains that with grants it can be hard to know exactly how the money is eventually used, however, PRIs tend to be tracked over a period of years to ensure the money is returned.

3. Dark cloud over good works of Gates Foundation
By: Charles Piller, Edmund Sanders and Robyn Dixon, Los Angeles Times, 7 January 2007

Summary: This investigation by the LA Times details a contradiction in the philanthropy of the Bill and Melinda Gates Foundation and its endowment holdings because of vast financial gains the foundation reaps every year from investments that contravene its good works.

While the intention and ability of the Gates Foundation to make huge contributions to major world problems is unparralelled (it has poured $218 million into polio and measles immunization and research worldwide, for example in the Niger Delta), the foundation has also invested $423 million in Eni, Royal Dutch Shell, Exxon Mobil Corp., Chevron Corp. and Total of France — the companies most responsible for polluting the Niger delta beyond anything permitted in the United States or Europe.

While no study confirms the suspicion, some argue this pollution is responsible for a number of health problems in the Delta, including bronchitis in adults, asthma and blurred vision in children, as well as prostitution which contributes to a surge in HIV and teenage pregnancy, both targets in the Gates Foundation's efforts to ease the ills of society. Furthermore, bore holes from the work of these oil companies fill with stagnant water, which is ideal for mosquitoes that spread malaria, one of the diseases the foundation is fighting. The LA Times found that the Foundation has holdings in many companies that have failed tests of social responsibility because of environmental lapses, employment discrimination, disregard for worker rights, or unethical practices and that 41% of its assets, not including U.S. and foreign government securities — have been in companies that countered the foundation's charitable goals or socially concerned philosophy.