Saturday, October 16, 2010

Gonzo...

Genuine charities face difficulties. Flyers {leaflets} posted through the average letterbox of the house door bear a misnomer and people can be deceived as to where their charitable donation may go... Honestly, just read this shit below: -

"On 13 July, a flyer was posted through the door of my constituent, Mr Philip Wilson. It simply stated that clothes, shoes, blankets, towels and other such items were urgently needed by Breakthrough Breast Cancer; that Clothman Ltd, which it stated was a commercial participator that helps raise money for Breakthrough, would pick up the bags on Wednesday; and that £100 from each tonne collected would go to the charity. It carried the Breakthrough branding, had a woman pictured on the front, a registered charity company number and website details. It also had a mobile telephone number that you could call for further information.

"The leaflet looked genuine and a normal charity supporter would not doubt it. However, on this occasion the leaflet went through the wrong door-or the right door, depending on how one looks at it. Mr Wilson is mid-Kent's fundraising co-ordinator for Breakthrough Breast Cancer, and therefore knew that his charity did not do door-to-door charity collections. He contacted the local council, the trading standards office and the police, but, despite a collection van being stopped mid-act, the operator was allowed to continue for allegedly having the correct registered charity number on the flyer. Of course, the flyer was fake, but the number was legitimate. That incident illustrates the difficulties that genuine charities face.

"I first became acutely aware of bogus charity collections during the summer recess, when BBC South East televised an in-depth undercover investigation, which highlighted a spate of incidents across Kent. That investigation was already under way when Mr Wilson contacted the BBC and, shortly after, he came to my surgery. It has become clear that what happened in Chatham in mid-July has happened and continues to happen daily in streets up and down the country.

"There are two major problems in combating this criminal activity: one, the legislation and, two, the often relaxed attitude of the police. Taking the police response first, I understand that the theft of a single bag of clothes may not seem like a high priority, but when it is estimated that the theft of clothes is in excess of 36,000 tonnes per year, at a cost of more than £14 million to charity, it should be taken more seriously. There are some examples of a good police response. Derbyshire police have recently conducted a successful undercover operation into this specific crime, and other forces have made individual arrests, but usually the attitude of the police is that they face tight budgets and bogus collections are not a key target or high priority.

"The second challenge is the reluctance and/or capability to perform cross-border policing on level 2 or 3 crime. For example, Clothes Aid recently passed over intelligence on a small gang stealing in Bedfordshire, Hertfordshire, Essex and the Met area, but each force has refused to take the lead because it is "cross-border". That reaction ignores the fact that this is, quite simply, an organised crime, which is cross-county and growing.

"If I may, I shall move on to the legislative aspects. For a charitable collection to take place, a licence must be applied for under the House to House Collections Act 1939 and the House to House Collections Regulations 1947. The Local Government Act 1972 transferred all licensing to the local authority, except in London. Larger charities can apply for a national exemption, but without a licence or an exemption doorstep collection is illegal. Although it is feared that as much as 50% of house-to-house charity collection is bogus, Charity Bags notes that only one in 10,000 illegal clothing collections in the UK is subject to enforcement action or prosecution by the local council.

"In the Charities Act 2006, the previous Government introduced a new licensing and regulatory regime for house-to-house collections, but secondary legislation is required for it to be implemented. I was concerned to read that the Minister and the Charity Commission have publicly stated that they do not believe that to be a priority. Given the effect on public trust and the financial cost for charities, I respectfully disagree, and I suggest that anything that helps combat this organised criminal activity should be a priority. I urge the Minister to introduce secondary legislation at the earliest opportunity. A better licensing system is only one aspect of the changes required to combat the problem. Since most stolen clothing is exported, I would like to see more robust monitoring from border police and better international intelligence communication.

"There needs to be tougher enforcement action against bogus collectors, from the van driver up to the mastermind operator organising the entire ring. The current level of deterrence is laughable, and bogus collectors continue to act with impunity. Consideration needs to be given to whether the bogus operators breach other important legislative and tax requirements, from employment duties through to tax evasion. Finally, the charity industry needs to work together to improve collection codes. I hope all relevant organisations will participate in the consultation on the new code of conduct recently published by the Institute of Fundraising

"House-to-house collections of donated goods are a crucial source of income for many charities-those with and without shops. For example, last year they contributed more than £22 million to the British Heart Foundation for the fight against heart disease, and 43% of sales income came from goods donated through doorstep collections. Age UK raises approximately £25 million per year from charity bags, which accounts for around 60% of the stock sold in their shops.

"Even for the vast majority of charities that do not have shops, house-to-house collections form a massive part of fundraising. Legitimate private collection companies-some of which are better than others-are used to collect on behalf of many charities. Their professional fundraising ability means that companies such as Clothes Aid collect around £2 million per year on behalf of their tied charities.

"Charity bag collections are a convenient way for people to recycle unwanted textiles. Our increasingly busy lifestyles mean that it is hard to find the time to drop clothes into a shop, and, given that shops themselves are often located in pedestrianised areas, it becomes incredibly difficult to make large donations following a spring clean, or a post-diet or a pre-winter wardrobe update. Like millions of people, I put my clothes in a charity bag and pop them outside my door before heading off to work. I do so in good faith, with the belief that they will be put to excellent use and raise vital funds for whichever charity is collecting. Sadly, it appears that that trust can sometimes be misplaced." -

Tracey Crouch (Chatham and Aylesford, Conservative);

SOURCE: [ http://www.theyworkforyou.com/whall/?id=2010-10-13a.100.0&s=Intelligence#g100.1 ] ; accessed Sat. 16th Oct., '10

If you've ever been deceivèd it's most likely been due to money. Don't take any addresses down if a "Czech citizen" needs his bus fare back to Prague via Birmingham! I fear for our children. Bring in ID cards worldwide and then we'd know who was genuine.

A Liberal Economy Not Stifled by Aid Means a Way Forward for Africa

Developing nations appear to us as bound together by means of aid. Financial commitments made at the Monterrey Consensus in Mexico, 2002, and more recently at the Doha Declaration in Qatar, 2009, place an emphasis on the mutual accountability of donors and developing nations to each other. At the heart of the matter of the global development agenda, the Millennium Development Goals found agreement by the international community in September 2000. The Millennium Development Goals provide a focus for the outcomes that the developed world wishes to achieve by aid. By 2015, we trust that poverty and hunger will halve itself so that primary education then takes on a universal shape.

But the core problem of poverty in Africa lies within the poorest countries falling behind the countries of the developed world or even falling apart. The focus of the Millennium Development Goals misleads us if 80 per cent of the world’s poor live in countries making progress. The present global economy does not favour what economist Paul Collier of Oxford University calls “the bottom billion” people in the poorest countries of which they live. A state gets weaker and more nondemocratic and incompetent if it exhibits economic decline, dependent on primary commodity exports and exhibits a low per capita income unequal to its distribution.

Aid proves an unambiguous alternative preferable to trade in developing nations. The UK formed a committee to provide "Aid for Trade". In September 2006 Gordon Brown announced that the UK would increase aid for trade to £409 million by the end of this year. Zambian economist, Dambia Moyo, argues that this makes for “dead aid since Western assistance creates a dependency culture.”

Growth requires more than aid in developing nations. According to Andrew Masters, the Economic Advisor for the Department for International Development, a country’s level of development sustains its growth. “Many developing countries experience spurts of growth in the short-run, through net exports, but it also impacts on longer term productivity, through importing machinery and increased competition,” he says.

The Commission on Growth and Development produced a report which found that 13 African economies exhibited sustained growth in the post-war period. They fully integrate into the global trading system as economies that benefit from importing ideas, technology and know-how from the rest of the world and exploit global demand, which provided a deep, elastic market for their goods.

Export competitiveness reduces aid in African countries. Large sums of money can reduce a developing nation’s competitiveness if it leads to inflation. Known as 'Dutch Disease' inflation raises the costs of production that makes a country uncompetitive in relation to others. This problem can manage to find a solution if the right policies apply. The UK does not make aid conditional on any countries adopting specific economic policies. In some cases African countries may adopt poor policies in a place that hurts the value of exports.

According to leading economists, Christopher Adam and Stephen O’Connell, a dollar of donor resources transferred to an aid-recipient country via a donor’s own import liberalization serves as a better medium.

As the world financial crisis increases protectionist tendencies among rich countries it worsens Africa’s access to markets. By the removal of quotas from the imports to Africa, developing nations would not require any restrictions on the quantity they may sell, therefore increasing supply and demand. By the same token, if we exempt developing nations from export tariffs it means they can trade at no extra cost.

The principle objective of trade liberalisation equates to resource reallocation. When the Kenyan government attempted to institute trade liberalisations the resulting aid policy interfered with the exchange rate and compromised free trade. Exchange rate depreciation in the third world shunts up the price of importables. An economic model with no domestic consumption of exportables, no aid interference and the removal of import quotas lowers the price of the importables. In a Kenya-type economy exports capital proves sufficient to finance the demand for imported capital without quotas whereas a pre-reform Ghana-type economy does not possess sufficient funds for any category of import.

Africa desperately needs trade liberalisation to provide the developing world with sustained growth. To assess whether free trade supported by a programme of aid financing can work we must addressed the question: should we arrive at the negotiation of aid levels on purely economic grounds instead of the political and humanitarian grounds by which aid gets administered? The charity of the progressive governments, the targets of the Millennium Development Goals, and the myriad organisations set up to lift Africa out of its abject poverty, cannot provide the sustained growth that Africa requires. Only with a strong economy and state reform can we see the bottom billion begin to sustain themselves.


Eliyahu Nataniyel ben James.


SOURCES:

{1}. http://www.guardian.co.uk/commentisfree/2010/nov/14/g20-summit-china-free-trade

{2}. http://info.worldbank.org/etools/wti/docs/Angola_brief.pdf