Transparency needed in resource deals

       Abill introduced in the United States Senate could have major repercussions in the way multinational energy and mining corporations do business in the developing world. The bill would simply require companies registered with the US Securities and Exchange Commission (SEC) to make public howmuch they pay to foreign governments for oil, gas and minerals. If it goes into effect, the bi-partisan Energy Security through Transparency Act of 2009 would affect not only US companies,but virtually all multinational companies which extract these resources because they are registered with the SEC.
       The bill's sponsors hope that the greater transparency will lead to more corporate responsibility in the disbursement of these huge amounts of money, and also serve to inform the citizens of developing countries of the prices paid for the natural resources which in theory belong to them.
       It is well known that because of corrupt and nonrepresentative governments,all too often the people in developing countries never see any benefit from the fortunes paid for their countries' natural resources.
       What's even worse, this natural bounty in many cases is directly implicated
       The bill's sponsors hope that the greater transparency will lead to more corporate responsibility in where these huge amounts of money are disbursed, and also serve to inform the citizens of developing countries of the prices paid for the natural resources which in theory belong to them
       in increasing the suffering in the general population since it props up dictators, finances wars, etc.
       According to Publish What You Pay (PWYP), a global civil society coalition,natural resource revenues are an important source of income for governments of more than 50 developing countries. As noted on the organisation's website, when properly managed these revenues should serve as a basis for poverty reduction, economic growth and development, rather than exacerbating corruption, conflict and social divisiveness.
       It can only be hoped that the members of the US Congress will do the right thing and not bend to pressure, which is sure to come from companies which would rather keep their dealings in these countries out of the public eye.
       Food security is first priority
       Statistics released by the United Nations Food and Agriculture Organisation (FAO) in a new report said that worldwide a record one billion people are now going hungry. According to the UN food agency,30 countries now require emergency aid, including 20 in Africa.
       Jacques Diouf, director-general of the FAO, said:"In the fight against hunger the focus should be on increasing food production. It's common sense ... that agriculture would be given the priority, but the opposite has happened." Mr Diouf was speaking of the situation in countries which have been hard hit by food shortages, where the trend since the mid-1980s has been reduced foreign aid and private investments earmarked for agriculture.But his words deserve attention even in countries where food security is taken for granted, like Thailand. We should not forget how important a thriving agricultural sector is to the well-being of the country, more so even than a thriving property sector, whose problems get much more newsprint.
       To maintain a thriving agricultural sector it is necessary to assure farmers they will be able to get a fair and sufficient price for their produce. Toward that end it is encouraging that Deputy Prime Minister Korbsak Sabhavasu pledged last week to quickly finish work he has begun in the agricultural sector before he is transferred to a new post in the PM's Office. This work includes guidelines for crop insurance and other supplementary measures to help shore up crop prices in case market prices fall.
       Mr Korbsak said the supplementary measures might include traditional price intervention or a pledging scheme for particular areas or provinces.This is a good start, but unlike in the past, these schemes must be kept totally transparent.
       Another area that needs careful attention is how to protect farmers from the adverse effects of trade liberalisation, such as that which will take effect among Asean member countries on Jan 1,2010.
       Many farmers are barely getting by as it is and the nation cannot afford to leave them to the mercy of market mechanisms.