04/08/2011 Newsnight


04/08/2011

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Sell, sell, sell, markets in freefall across the world. Huge

:00:13.:00:16.

sell-offs tonight, in New York and earlier in London, and across the

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continent. With the economies of Europe and the US on a knife-edge,

:00:19.:00:23.

is there now a real danger of a second global slump. That is more

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of the concern on the markets. How are we going to be able to avoid

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the recession from taking place. Two men who control tens of

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billions of pounds, and an eminent economist will tell us just how bad

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this really is. Also tonight, torture, rape and

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deliberate starvation, an exclusive undercover investigation by

:00:45.:00:50.

Newsnight reveals evidence of the Ethiopian Government using millions

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of international aid to punish their political opponents. We also

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investigate allegations of human rights abuse.

:00:58.:01:05.

They were beating me while I was being raped. I was bleeding. I

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became unconscious when I saw my unborn baby.

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I will be speaking to a senior Ethiopian diplomat. And is the

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death penalty back on the agenda, as a cascade of e-petitions pings

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into the Government's index, will the politicians really take any

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notice. Just when we hoped it might get a little better, it got worse.

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In fact, if the markets are to be believed, the west could even be

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hurtling towards a second recession. There was carnage on trading room

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floors around the world, as the markets went into freefall over

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fears the eurozone debt crisis could spread. The Dow Jones plunged

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by over 500 points tonight, in the biggest sell-off since the credit

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crunch brought the global economy to its knees three years ago. In

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the UK the picture wasn't much better, with the banks taking the

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biggest hit. Lloyd's came off worst, losing 10% of its value in a single

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day. (sound of knives being sharpened)

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It wasn't supposed to be this hard on the markets, and it definitely

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wasn't supposed to be the worst fall in London since the depths of

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the recession. Could we be going back there. Behind the sudden

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collapse was a fear that the world economy is on a knife-edge between

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recovery and another global slump. In London, the FTSE was down 191

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points, a drop of 3.4%, wiping �50 billion from the value of the top

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companies. In Germany the DAX was sharply down. The Dow Jones tumbled

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519 points, 4.3%, its worst one day performance since 2008. What is

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particularly worrying about today's sell-off, is it came despite

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attempts, costing billions of pounds by Brussels and Washington,

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to try to convince the financial world, that actually overindetected

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countries were sorting themselves out. And nagging doubt about that

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on the markets, today turned into a full blown loss of confidence.

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Sometimes there is nothing more disconcerting than reassurance.

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have a credible package. Only two weeks ago the President of the

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European Union was trumpetting a deal that was meant to contain the

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crisis in the eurozone, at least for the summer. Today he was

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warning that he was deeply concerned that the sovereign debt

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crisis would spread beyond Europe. International investors are now so

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worried about lending money to Spain, they are demanding interest

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rates to buy its bonds, at more than 6%. To lend to Italy and buy

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its bond, they want interest rates or yields of a similar amount. Some

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bond dealers say when rates get above 6%, a country's debts become

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unmanagable. The European Central Bank was put under massive pressure

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to step in and start buying up the bond that is no-one else wants.

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Today its president said it was buying bonds, but not the crucial

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Italian and Spanish ones. The key for everything is Government ahead

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of the curve, in both their fiscal policy, and their structural

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reforms, and structural reforms are absolutely of the essence. I know

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that they are here and there difficult, they might be

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politically difficult in our democracies. They are paying off.

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But the focus of traders' fears about the real economy has been

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shifting from debt to growth. The US is now clearly slowing down.

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Consumer spending virtually ground it halt, growing by 0.1%, compared

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with 2.1% growth in the first quarter. The economy grew at an

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annual rate of 1.3% in the second quarter. Economists had forecast

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growth of 1.8%. I think growth is the element of uncertainty that hit

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the markets more recently. Up until now we have had the political

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concerns, both in Europe and in the US. But the expectation was that we

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are going through a relatively soft period in economic growth, and we

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will be starting to see an uptake in the second half of the year.

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More recently we have seen a disappointment in terms of economic

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numbers. And if there is economic disappointment persisting, we could

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be heading in a global second-dip recession, that will have adverse

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impact. Now economists are starting to ask, once again, if it is the

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right time to be imposing austerity, when the global economy looks so

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weak. Economic austerity is not unlike personal austerity n a sense

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it is far easier to do when you are feeling strong, rather than weak.

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Austerity is all about cutting back on your outgoings, but, if you

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don't have the economic growth, you don't have the income. Then you

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won't have the tax receipts from all that economic activity, to try

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to improve your financial position. In fact, it could even get worse.

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If we are going to get better growth, the west needs the spending

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power of the east. I think looking at the eurozone in the developed

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world and more generally, there is clearly a lot of head winds from

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highly indebted consumers seeing their wages fall, and growth cut.

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The Governments also cutting back on the spending. But growth going

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forward will be selling to increasingly wealthy consumers in

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the emerging markets. There is a second knife-edge here, sorting out

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Government finances now, may turn out to be at odds with getting the

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global economy going again. Governments have to cut spending,

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or raise tax, in order to prevent them losing their credit rating,

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and having sovereign debt crisis. On the other hand f they cut too

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much, or too soon, then they will suck demand out of their economies,

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and possibly turning a slowdown into a slump.

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So if we are to avoid a global recession, political leaders still

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have to convince the markets their debt reduction plans are credible.

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In one of the worst days in Wall Street's history, the markets

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demonstrated just how little confidence they have about that.

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With me now are two men who between them control tens of billions of

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pounds across the global markets. From New York I'm joined by Peter

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:07:40.:07:40.

Schiff, CEO, and joining me here is Paul Griffiths.

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First of all, Paul Griffiths, how concerned are you about what

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happened today? We are very concerned. In terms of not only the

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market reaction, but really the way out here. At the moment we are,

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frankly, we are on a knife-edge. A little too hot, and a little too

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:08:08.:08:12.

cold and we could easily see a double dip. You predicted the

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credit crunch last time round, how critical was today's drop in the

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US? Pretty predictable. A lot of people who control money around the

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world, were making bad bets on an economic recovery. But all the

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stimulus and bailouts in the United States, didn't create a recovery,

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it created debt advanced recovery. That exacerbated the fundamental

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problems with the economy. The US is headed for a more severe

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recession than the one we think we emerged from. I think we are in a

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depression, the depression is interrupted by Government stimulus

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that only sows the seeds for the next downturn. The markets are only

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starting to - to come to grips with this. The stimulus is weakening the

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underlying economy. We need higher interest rates and the Government

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cutting back on spending. None of that will happen because the

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politicians don't want the voters to taste that medicine, that is the

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only way to cure this economy. Looking at the eurozone, was

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Barroso right to issue such a strong warning? I think he was, I

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don't control billions of dollars like the other two, I'm trying to

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make sense of what is happening. There is a collision of two factors

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going on here, on the one hand, as you just heard, you have the world

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waking up to the fact that there is a process of so-called deleveraging

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going on. That the economies and companies and banks still need to

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cut debts, so do households, that process will be brutal and slow.

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Anyone who was looking for a quick recovery was basically in cloud-

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cuckoo-land. Secondly, that realisation of colliding with the

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fact that the problems in the eurozone, in particular, have not

:09:55.:10:00.

been solved, and the question of whether the eurozone can hang

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together or not, is absolutely at the forefront of investors' minds

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at the moment. That is a nasty cocktail, particularly in August,

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when markets are slow, and trading is suffering from the curse of

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August when prices tend to shoot all over the place. One of the

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ironies is, if, if, Europe could operate in a cohesive fashion, it

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is probably in a stronger position than the US. Frankly, we don't see

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very much chance of that. Why, structurally you don't think the

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euro was set up to handle a crisis like this? It wasn't. Structurally

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the euro is a collection, as we know, of nation states, and clearly

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with monetary on the one hand, but no fiscal or political union on the

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other, this sort of cry sifs in the mix at some - crisis was in the mix

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at some point. Looking at the crisis today, Italy and Spain, we

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have the second time coming back from holiday in Spain. What will

:10:59.:11:09.
:11:09.:11:10.

happen there? It feels like the banking crisis of 2007/208900 -

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2008, where the markets are swinging from one way to the next.

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Investors have woken up to the fact that they can't assume all the

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countries will get bailed out continuously. There will be

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restructuring. Now they have crossed the psychological rub con,

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they can't actually tell who is next. If people are looking at

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Italy and Spain saying help, how do we know they are different from

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Greece. Is this about confidence as much as anything else? It is, but,

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of course, so far we are only talking about the west, we are only

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talking about developed market economies, investors have another

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choice, they can invest elsewhere, emerging markets, Latin America,

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Asia, there are opportunities. there safe havens for investors?

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You want to invest with the creditor, in the nation that is are

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producing all the goods the west is consuming. They are the ones that

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have viable economies. They don't need us. In fact, having to

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subsidise the American consumer is actually undermining the Chinese

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economy and other emerging markets. To the extent they allow their

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currency to appreciate, they can consume their own production, and

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leave the rest of the world to twist in the wind. That will happen.

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I agree the problems in Europe are bad, they are more severe in the

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United States. The twisting in the wind has big consequences? If you

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advise all Uruguays to invest in emerging markets? We do, we

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recognise there is opportunity, clearly whether you are looking at

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QE-2 or 3. Quantitative easing? printing of money, sorry, that

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liquidity of money where is it going, to overseas and emerging

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markets. Is that sustainable? I think to my mind, one of the

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signs to which investors are panicked, it those not putting

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money into emerging markets are scrambling for anything they think

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as safe. Not only are you seeing gold and the yen going up. One of

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the fascinating things on the front of the second section tomorrow, is

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the bank of New York is paying negative interest rates to

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depositors, people who want to put their money with that bank now

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because they think it is safe, they will have to pay a fee. There is a

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scramble to put cash where they think it is safe. They think it is

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safe because it is too big to fail. That is the problem. You have moral

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has standards with banks that are structurally unsound. If the Fed

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does the right thing, every bank bailed out will fail. That is one

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of the problems. That is why our Central Bank is keeping interest

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rates so low. It is propping up the financial sector and the US

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Government. If you think Greece has a problem paying its debts, imagine

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what will happen to the US Government when our interest rates

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spike up. That is another credit crunch? I would say right now you

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have again, things turning negative. This is unchartered territory, it

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is a sign of just how many dislocations there still are in the

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system that need to be worked out. They have to get growth, we have to

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get out in order to get out of it, where will it come from? In the

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west, that's a very challenging question. Frankly, you can have a

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bit of, add a little bit to the mix in terms of some policy stimulus,

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maybe reduce taxation, but it is very unclear where growth is coming

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from in the west. Can you force investment? We could get to the

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point where, whether it be in economies which are receiving too

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much influence, put on some form of capital controls, or in the west we

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start to see capital controls to see money flowing out, I don't see

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that as a crazy scenario. We are not going to have growth in the

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United States at all, we will have inflation, but not genuine growth,

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that comes from the market. That comes from private entrepeneurs,

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from business investment, but we can't do that, the Government in

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the United States is undermining our economy with regulations and

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taxation and barrowing, - borrowing that is stifleing economic growth,

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and sucking all the capital out of the private sector and spending it.

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You are absolutely right. And mentioned the key word, inflation,

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in the western economies we are living with, whether the US, the UK

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or significant chungs of Europe we have overly - chunkss of Europe

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have overly inflated inflation. I think it is tough and a lot of

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people are looking to emerging markets for global demand. Although

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the economies are slowing down and sluggish, they haven't fallen off

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the cliff yet. With the markets gyrating wildly in the thin trading

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of August, the fact of the matter is the economies right now are

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bumping along the bottom, they are not off the cliff. Certainly it

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will be tough going forward. don't need more demand, we need

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more sue ply, we need to - supply, we need to make more stuff. In the

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east they are making more stuff, they don't have to export what they

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give to us, what is missing in the west is real production, we need

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more manufacturing, we need to make some stuff, we can't do that, so we

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rely on the Asian economy to supply us with all the merchandise we

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don't produce ourselves. We have to borrow the money to do it. The

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countries financing us are having problems because they have to

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create so much inflation in their own countries to prop up the dollar.

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Just before we finish. Bringing it back to Europe. What does the

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eurozone have to do, as Gillian says, will it be one crisis in one

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country one day or one the next? have moved on from, that the

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contamination effect we have talked about for so many months is with us,

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we need to see a coherent European solution. Frankly, though, I don't

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think it will happen any time soon. Are you as pessimistic? The problem

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is the politics. The problem is the politics, absolutely. The solution.

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One thing very clear from 2008 is sticky plaster solutions don't work.

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They tried it with the banks it failed, and with the eurozone t

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failed. Europe will have to choose, either it pulls together in a union

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and finds a common solution, or some element of the eurozone will

:17:26.:17:30.

break apart. The best solution for Europe and the euro is to let the

:17:30.:17:34.

countries that can't pay their bills default, let them restructure,

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there shouldn't be a bailouts, this shouldn't sacrifice the euro, they

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should force the people who recklessly loaned money to

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Governments to lose money. That will not happen, politically there

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is a long way to go. That is the problem. That is the problem, they

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will create a moral has standard which ultimately will doom the euro,

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before the euro dies, the dollar will die first, our problems are

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more acute, Europe's problems are for tomorrow, America's are for

:18:04.:18:07.

today. International attention is focused

:18:07.:18:11.

on the crisis in the Horn of Africa in an emergency appeal to save

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millions from starvation, apart from this country, countries like

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Ethiopia are given hundreds to pull them out of - hundreds of millions

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to pull them out of poverty. We look at allegation that is this

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money is being misused, that the Ethiopian Government suesing it as

:18:29.:18:33.

a weapon against the opposition, married with systematic torture and

:18:33.:18:43.
:18:43.:18:47.

rape, to cow the population. The Horn of Africa, a humanitarian

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crisis on an unprecedented scale. Every day thousands of refugees are

:18:56.:19:00.

fleeing to northern Kenya from Somalia and Ethiopia. Walking miles

:19:00.:19:03.

to escape drought and familiar anyone, children, the old and sick,

:19:03.:19:13.

are dying. It is images like these that have

:19:13.:19:16.

prompted the international community to pour millions in

:19:16.:19:21.

emergency aid into the region. But this in itself is a drop in the

:19:21.:19:27.

ocean. Separately every year up to $3 billion in long-term development

:19:27.:19:34.

aid is given to Ethiopia alone. In this special report, by Newsnight

:19:34.:19:36.

and the Bureau of Investigative Journalism, we expose evidence that

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the west has turned a blind eye to systematic human rights abuses in

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had Ethiopia. I have given up on the west. I do

:19:47.:19:52.

not believe that the west is interested in democracy and the

:19:52.:19:58.

rule of law and human rights. In the third world.

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We reveal evidence of how aid is being used as a weapon of

:20:03.:20:07.

oppression. Propping up the Government of Meles Zenawi.

:20:07.:20:11.

Development is only available to those people who support the regime,

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or who vote for the ruling party. The rebels began pushing in through

:20:19.:20:24.

the suburbs at 4.00am this morning. Meles Zenawi came to power after

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ousting the military regime in 1991. The priority will be to ensure law

:20:30.:20:37.

and order. But the crunch came in the elections of 2005. A brutal

:20:37.:20:46.

crackdown. 193 civilians died, tens of thousands were detained. He

:20:46.:20:51.

remained a friend of the west. And allegations of human rights abuses

:20:51.:21:01.
:21:01.:21:03.

continued to this day. In 2007, the Ethiopian army launched a counter

:21:03.:21:06.

insurgency campaign. Human Rights Watch and the American Association

:21:06.:21:09.

for the Advancement of Science, produced before and after satellite

:21:09.:21:16.

images of villages razez to the ground. Allegations that Ethiopian

:21:16.:21:19.

troops were forcibly displacing entire rural communities,

:21:19.:21:28.

destroying dozens of villages. The media and most aid agencies are

:21:28.:21:32.

banned from the region. We decided to find out what is happening now

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by talking to those who have recently fled to the refugee camps

:21:36.:21:46.
:21:46.:21:46.

of northern Kenya. This is the largest refugee camp in

:21:46.:21:52.

the world. More than 400,000 people live here. It is a sprawling

:21:52.:21:59.

refugee city. The vast majority are from Somalia. Thousands are

:21:59.:22:05.

arriving on a daily basis, escaping the drought and familiar anyone.

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Ethiopians are coming here too. Civilians are caught up in the

:22:14.:22:18.

fighting between the rebels and the military. We have been told that

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the number of eat Ethiopian refugees is increasing over the

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last few weeks. We have tracked some down and are hoping to meet

:22:28.:22:31.

them here. This grandmother of four arrived

:22:31.:22:36.

just three weeks ago. She was arrested along with 100 others. She

:22:36.:22:42.

says soldiers killed her son in front of her.

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TRANSLATION: Whenever there is fighting between the two, they go

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to the nearest town and take their revenge on civilians. They would

:22:53.:22:58.

kill or arrest everybody. She was jailed for one-and-a-half years.

:22:58.:23:03.

The women kept in a container, picked out on a nightly basis to be

:23:03.:23:08.

tortured. TRANSLATION: They raped me in a room. One of them was

:23:08.:23:15.

standing on my head, and one tied my hands. They were taking turns. I

:23:15.:23:20.

fainted during this. After that they threw me into the container. I

:23:20.:23:25.

can't say how many, but there were many soldiers. I can't estimate the

:23:25.:23:35.
:23:35.:23:36.

number. A mother with a young child. Again stories of rape, and torture.

:23:36.:23:39.

TRANSLATION: There were more than 50 women in prison with me, we all

:23:39.:23:45.

experienced the same sorts of things. I gave up on life, I

:23:45.:23:49.

thought they were going to kill me. You don't worry about rape when you

:23:49.:23:55.

have no hope. This woman says she was arrested and accused of being a

:23:55.:24:02.

supporter of the rebel militia, the National Liberation Front, declared

:24:02.:24:05.

a terrorist group by the Ethiopian Government. She shows us the marks

:24:05.:24:15.

and scars of torture. Stab wounds from a bay I don't know net. - a

:24:15.:24:22.

Bayonette. TRANSLATION: They used to beat me, whatever they liked.

:24:22.:24:26.

Then they started raping me. They were beating me while I was being

:24:26.:24:35.

raped. I was bleeding. I became unconscious when I saw my unborn

:24:35.:24:40.

baby. And you were eight months pregnant at this time? TRANSLATION:

:24:40.:24:47.

Yes. A man stamped on my stomach, you can imagine what happened to

:24:47.:24:54.

the child. Very big kicks. Blows with the butt of a gun. As a

:24:54.:25:03.

consequence of that, the child died. Independent sources have told us

:25:03.:25:08.

similar stories of widespread human rights abuses. There is no way that

:25:09.:25:13.

we can verify these stories, and the press can't operate freely in

:25:13.:25:23.
:25:23.:25:25.

Ethiopia, we are going to try to go in undercover.

:25:25.:25:30.

Away from the drought and familiar anyone, the rains have come to

:25:30.:25:35.

Addis Abada. It is difficult to operate here, it is a virtual one-

:25:35.:25:41.

party state, and dissent is not tolerated. We arranged clandsetine

:25:41.:25:48.

meetings with key contacts. Ethiopia receives approximately $3

:25:48.:25:53.

billion in long-term development aid. The UK is the second-largest

:25:53.:26:02.

donor, after the US. This year our budget tops �290 million. The

:26:02.:26:06.

Ethiopian Government controls much of the distribution. Almost all of

:26:06.:26:12.

this aid goes through the Government channels. They have the

:26:12.:26:17.

Government administrators have the last say on who gets and who does

:26:17.:26:22.

not. The motivation is buying support, that's how they recruit

:26:22.:26:28.

support. Holding the population hostage.

:26:28.:26:35.

We travelled to the southern region. It is surprisingly illusion here,

:26:35.:26:42.

but this is deceptive. Lush here, but it is deceptive. The rains have

:26:42.:26:48.

come late and the crops haven't matured. The wife of this village

:26:48.:26:53.

elder died a few days a the reason, he says, chronic hunger.

:26:53.:26:57.

TRANSLATION: Five old people and five children died because of the

:26:57.:27:01.

familiar anyone recently. There are many children begging in the towns

:27:01.:27:11.

and on the sides of the roads. They are struggling to survive. This

:27:11.:27:19.

woman is a widow. She has seven children. The older ones have gone

:27:19.:27:27.

to town to beg, and scavange scraps from bins.

:27:27.:27:30.

TRANSLATION: This year there has been no help, no intervention from

:27:30.:27:36.

the Government. What are your fears for your children, for their

:27:36.:27:41.

future? TRANSLATION: Got knows, if they survive they might find their

:27:41.:27:48.

way, or die of poverty. What can I TRANSLATION: I give my children

:27:48.:27:53.

water, boiled with the leaves from coffee trees, and a sort of grass

:27:53.:27:59.

that is meant for the animals, that is how they are surviving.

:27:59.:28:05.

Another village 30kms away, it is a similar story. We spoke to the

:28:05.:28:10.

villagers, some had not eaten for four days. They told us they have

:28:10.:28:18.

had no help from the Government. In 2005, the people of these villages

:28:18.:28:21.

voted overwhelmingly for the opposition. And according to our

:28:21.:28:26.

sources, they are still being punished now.

:28:26.:28:31.

We travelled 100kms north to meet with others, farmers who say they

:28:31.:28:36.

too have been targeted because of their political beliefs. It was too

:28:36.:28:40.

dangerous to meet in their own village, they walked two hours

:28:40.:28:47.

across country, to meet at a safe location. TRANSLATION: Because we

:28:47.:28:52.

are in the opposition, we are not able to survive in our country. Our

:28:52.:28:57.

integrity, our conscience, does not allow us to join the ruling party,

:28:57.:29:01.

for these reasons we suffer greatly, we suffer if we want to get

:29:01.:29:08.

fertiliser, I think there are spies here. Is that him? Is it safe?

:29:08.:29:16.

is not safe. This is not safe? We can divert. We have had to cut

:29:16.:29:20.

the interviews here short, we have basically been told that we have

:29:20.:29:23.

attracted too much attention, and it is no longer safe to continue

:29:23.:29:28.

here. But these people here, these farmers have told us how they have

:29:28.:29:33.

been denied fertiliser, seed, they have had their land grabbed from

:29:33.:29:37.

them, such is the situation that their own wives are leaving them,

:29:37.:29:41.

they have been completely ostracised from their own

:29:41.:29:44.

communities, just because of their political beliefs and the grip the

:29:44.:29:48.

regime has on the community here. Opposition leaders say they have

:29:48.:29:51.

personally brought evidence like this to the attention of the

:29:51.:29:57.

international community time and time again.

:29:57.:30:05.

The position is dismissive. They always want to dismiss it as an

:30:05.:30:08.

isolated incident, when we present them with proof, and we challenge

:30:08.:30:18.
:30:18.:30:20.

them to go down and check it out for themselves, they don't do it.

:30:20.:30:27.

A traditional funeral further north. This is Ethiopia's largest and most

:30:28.:30:33.

populist region. In the last few months more than 200 political

:30:33.:30:38.

activists have been detained in a series of mass arrests. Many

:30:38.:30:43.

detained without charge. Accused of being members of the Oromo

:30:43.:30:47.

liberation front, an armed seperatist organisation, again,

:30:47.:30:55.

declared a terrorist group by the Ethiopian Government.

:30:55.:30:58.

Professor Merera Gudina is a seasoned national opposition

:30:58.:31:01.

politician, with his roots firmly in the region. He says the

:31:01.:31:05.

Government is rounding up members of his and other parties, accusing

:31:05.:31:10.

them of being terrorists. Hundreds of them are now in prison, our

:31:10.:31:14.

members. The Government knows our members, but they say they are

:31:14.:31:17.

members of the other party, the outlawed party. You are saying

:31:17.:31:21.

these are innocent people that have been jailed? We know they are our

:31:21.:31:24.

members they have been in parliament, some of them, some of

:31:24.:31:27.

them in the pal parliament, some of them were in the regional

:31:27.:31:31.

parliament. Some of them were our candidates last time, during the

:31:32.:31:40.

elections. What happens to them in jail? Some of them are severely

:31:40.:31:47.

tortured. Back in Addis Abada, it is here that some of the worst

:31:47.:31:56.

human rights abuses are alleged to be currently taking place. This is

:31:56.:32:01.

the prison, and it is here that opposition politicians, academics

:32:01.:32:07.

and dissidents are interrogated. This man recently fled from

:32:07.:32:14.

Ethiopia after his release. TRANSLATION: Interrogation starts

:32:14.:32:21.

with beating. They handcuff your hands and feet, and hang you upside

:32:21.:32:31.
:32:31.:32:35.

down. They immerse you in water. They use electric shocks. This man

:32:35.:32:40.

was a senior opposition politician. He was interrogated every night for

:32:40.:32:50.
:32:50.:32:50.

six weeks, kept in solitary confinement. I have never seen such

:32:50.:33:00.
:33:00.:33:02.

being grigaigs of - being gridaigs of human being. I saw a man -

:33:02.:33:09.

Degradation, they said to a man to remove his trousers, they beat him,

:33:09.:33:17.

and beat him, they took his penis and with a cable round it just beat

:33:17.:33:25.

it like that, he will never produce again. You will be castrated.

:33:25.:33:28.

The Ethiopian Human Rights Commission recently published a

:33:28.:33:33.

report into conditions in 35 prisons across the country. It says

:33:33.:33:43.
:33:43.:33:50.

The international community funds the Ethiopian commission. Last year

:33:50.:34:00.

the UK's contribution was �230,000. This is an internationally

:34:00.:34:05.

respected human rights campaigner, Professor Mesfin Woldemariam.

:34:05.:34:13.

they wanted the Human Rights Commission to work, justly, legally,

:34:13.:34:22.

I think there is a lot to be said. But these are puppets appointed to

:34:22.:34:27.

the commission. Absolute puppets. You know we have a generation of

:34:27.:34:32.

people beaten, some of them even lost their lives, and we challenge

:34:32.:34:36.

a lot of diplomats, including British diplomats to get access to

:34:36.:34:43.

what is going on. What is their response? They say the Government

:34:43.:34:48.

say this is interference, the Government say this and that, more

:34:48.:34:52.

apologetic, not really pressing hard to get the information about

:34:52.:34:57.

what is going on. They need to think much more strategically about

:34:57.:35:00.

how you engage with a country that fundamentally disrespects human

:35:00.:35:04.

rights. How do you make sure that aid in that contextually gets where

:35:04.:35:10.

it is supposed to get. It is a - context, actually gets where it is

:35:10.:35:15.

going to get. The purpose of development said is to help

:35:15.:35:18.

Ethiopia on to its feet to establish democracy, justice and

:35:18.:35:21.

the rule of law. The evidence we have gathered suggests it is

:35:21.:35:31.
:35:31.:35:33.

failing. Joining me now is the Ethiopian deputy head of mission to

:35:33.:35:41.

the UK, ambassador Abdirashid Dulane. First of all, what we

:35:41.:35:46.

discovered was human rights violations that were systemic,

:35:46.:35:51.

widespread abuse and sorture, a pregnant woman raped and tortured,

:35:51.:35:55.

a grandmother in the refugee camp who said she was raped, another

:35:55.:36:01.

woman who was stamped on her stomach, what do you say to that?

:36:01.:36:06.

First, thank you very much actually for allowing us to explain, but,

:36:07.:36:16.

first, I want to indicate that this is completely a report that lacks

:36:16.:36:26.
:36:26.:36:27.

objectivity, it also lacks even- handedness, and as a matter of fact

:36:27.:36:37.
:36:37.:36:37.

it solely got the source, the sources which it used are opponents

:36:37.:36:43.

of Ethiopia who have been rejected by the electorate, and who have

:36:43.:36:52.

been, time and again, already shown that their allegations are

:36:52.:36:57.

unfounded. If you look, for example.: Do you disbelieve these

:36:57.:37:02.

women were raped and tortured, one had bayonet marks on her feet,

:37:02.:37:09.

these are not, these are women and grand mothers? These are in the

:37:09.:37:13.

refugee camp. These are in the refugee camp? Only one, the others

:37:13.:37:18.

were within the country. They were, our reporter was there? He said

:37:18.:37:22.

actually he was reporting from the refugee camp. He spoke to one women

:37:22.:37:26.

in the refugee camp, and he spoke to others within the country. The

:37:26.:37:30.

point is surely that these women, whether these women are opposition

:37:30.:37:35.

supporters or not, presumably you condemn any kind of torture or

:37:35.:37:44.

abuse? Yes. I was generally talking about the report. As far as torture

:37:44.:37:47.

and rape is concerned, the Ethiopian Government is a

:37:47.:37:54.

Government that is governed by the rule of law. That human rights and

:37:54.:37:58.

also democratic rights, are enshrined within the Ethiopian

:37:58.:38:08.

constitution. What happens in prison, in prison in Addis Abada,

:38:08.:38:13.

we heard there were men that had their heads held underwater, whose

:38:13.:38:18.

genitals were smashed, who had electric currents put through their

:38:18.:38:24.

body? These are completely rehashed and recycling of old allegations

:38:24.:38:28.

for which my Government has time and again and repeatedly has given

:38:28.:38:34.

answers to. What about having a UN special raconter on torture, to go

:38:34.:38:37.

into the country and look around the prisons and speak to the

:38:37.:38:42.

people? What about that? What I'm saying is look at your reporter,

:38:42.:38:46.

what he was saying that the reporters are not actually allowed,

:38:46.:38:52.

and he was reporting actually from Addis Abada. He got in secretly? He

:38:52.:38:58.

was undercover, ambassador? He was reporting from Oromo, he was also

:38:58.:39:03.

reporting. Can I just tell you, he was undercover? Can I tell you, one

:39:03.:39:10.

of your reporters, Mike skap skal woolridg, he was there, he has been

:39:11.:39:17.

there, he was reporting in the country. Can I be clear, you have

:39:17.:39:21.

to understand the BBC position on this, he had to go undercover, he

:39:21.:39:27.

would have not been allowed entry into Ethiopia. Who were his sources,

:39:27.:39:33.

who took him into the country, OLF, these are the two organisations he

:39:33.:39:38.

took as a source. He spoke to many, many villagers, and scores of

:39:38.:39:42.

people, one particular point, let's talk about the farmer who said he

:39:42.:39:48.

had neither fertiliser and seeds, what Angus Stickler found when he

:39:48.:39:52.

visited villages, is one village would be on the edge of starvation

:39:52.:39:55.

and no crops, and the next village people were not starving, they were

:39:56.:39:58.

not prosperous, they were not starving, and the village that was

:39:58.:40:02.

in much greater trouble was a village that had opposition

:40:02.:40:06.

supporters, the village that was looked after, was a Government-

:40:06.:40:11.

supported village, do you deny that? Yes, I completely deny that.

:40:11.:40:18.

In Ethiopia in 200315 million people were actually requiring

:40:18.:40:24.

assistance, now, in 2011 only 4.5 million people are requiring

:40:24.:40:27.

assistance. From here you can understand that the policies of the

:40:27.:40:35.

Government, for which we are always putting as a priority, in making

:40:35.:40:42.

sure that the early warning systems are actually in place, and these

:40:42.:40:46.

people which they are saying actually have never actually

:40:46.:40:50.

starved. The UN report on torture on Ethiopia, amnesty, Human Rights

:40:50.:40:56.

Watch, they are all lying, they are just talking nonsense, and

:40:56.:40:59.

Newsnight too? Because these independent investigations have

:40:59.:41:03.

already been carried out. As a matter of fact by saying my

:41:03.:41:08.

Government is actually starving people, and the use of aid money

:41:08.:41:18.
:41:18.:41:18.

and aid resources and the development assistance group has

:41:18.:41:21.

already independently investigated and already found that these

:41:21.:41:25.

allegations were completely unfounded, and were fabricated.

:41:25.:41:33.

Just one last point, do you think that you would let, not only the UN

:41:33.:41:38.

special person in, but do you think journalists should be able to come

:41:38.:41:42.

into the country to speak to whoever they wish and go wherever

:41:42.:41:48.

they want, and they should be allowed into Ethiopia to make their

:41:48.:41:58.

own judgments? Journalists with special agendas, working close with

:41:58.:42:06.

these terrorists elements will still be not allowed And the UN

:42:06.:42:11.

representative, you will let him in? We will be able to do that.

:42:11.:42:13.

Unfortunately there was no-one from the Department of International

:42:13.:42:23.
:42:23.:42:36.

development available tonight. They It's 13 years since capital

:42:36.:42:39.

punishment has been voted on at Westminster. It seems it is rarely

:42:39.:42:43.

talked about among politicians. But the subject has received the most

:42:43.:42:47.

on-line e-petitions, more than 40, in the Government's new e-petitions

:42:47.:42:52.

scheme, which went live today. If the number of signatures to these

:42:52.:42:56.

e-petitions were to reach 100,000, it is possible it could trigger a

:42:56.:42:59.

parliamentary debate. Supporters of capital punishment believe MPs have

:42:59.:43:04.

no stomach for the issue of the death penalty, and this just might

:43:04.:43:14.
:43:14.:43:16.

On June 21st Ruth Ellis was found guilty of murder at the Old Bailey.

:43:16.:43:20.

The questions about the death penalty haven't changed. Millions

:43:20.:43:26.

are asking is it iflised to kill by law, does it really act as a

:43:26.:43:31.

deterrent. Ever since its abolition, the campaign to bring it back has

:43:31.:43:37.

flared up periodically. An hour before the debate began a cue 100

:43:37.:43:41.

yards long had formed outside the House of Commons. They should bring

:43:41.:43:46.

hanging back. Ultimately the attempts have never gotten anywhere.

:43:46.:43:50.

Hanging seems to be, literally, a dead issue. The latest attempt to

:43:50.:43:58.

bring back capital punishment, has come from a blogger who has named

:43:58.:44:03.

himself after someone who was executed, or a while back, Guido

:44:03.:44:06.

Fawkes. The public has always supported the death penal tee, but

:44:06.:44:11.

politicians have voted against it. At the moment we have seen a

:44:11.:44:15.

disengagement between the political classs and the public. As way of

:44:15.:44:20.

trying to address the disengagement, the Government has launched its e-

:44:20.:44:23.

petition website. It is this that campaigners for the death penalty

:44:23.:44:28.

think will make a decisive difference. Get00,000 names and it

:44:28.:44:34.

could, could, trigger a Commons debate. The final decision is up to

:44:34.:44:40.

a committee of backbenchers. I'm anxious this will be a success. It

:44:40.:44:44.

is an improvement on the previous e-petition, which ended at Number

:44:44.:44:47.

Ten and didn't lead to the House of Commons. I'm sure the Backbench

:44:47.:44:50.

Business Committee will want to respond to the petitions and look

:44:50.:44:53.

at it alongside other priorities, and find time to debate the most

:44:53.:44:57.

important issues that emerge from the launch today. Even if there is

:44:57.:45:01.

a debate t seems unlikely that enough MPs would vote for a

:45:01.:45:06.

restoration. Across the world, the countries with death penalties,

:45:06.:45:10.

there are so many people, hundreds of thousands of people executed

:45:10.:45:16.

yearly, it hasn't prevented those sorts of crimes taking place. When

:45:16.:45:19.

criminals commit crime, they don't think of the sentence, but whether

:45:19.:45:24.

they can get away with it. Should our elected representative doss

:45:24.:45:29.

what we tell them. MPs like Edmund Burke have long argued that they

:45:30.:45:34.

should have the strength to resist popular opinion. As I said to my

:45:34.:45:39.

speech of the electors of Bristol 1774, your representatives owes you,

:45:39.:45:43.

not his industry only, but his judgment, and he betrays, instead

:45:43.:45:50.

of serving you, if he sacrifices it to your opinion. And I went on to

:45:50.:45:53.

say, authoritative instructions, mandates issued, which the member

:45:53.:45:59.

is bound blindly and implicitly to obey, to vote and to argue for,

:45:59.:46:03.

though contrary to the clearest conviction of his judgment and

:46:03.:46:07.

conscience, these are things utterly unknown to the laws of this

:46:07.:46:16.

land, and which arise from a fundamental mistake of our order

:46:16.:46:22.

and tenor of our constitution. other words MPs are representatives

:46:22.:46:25.

not delegates. Then there is how you measure the public opinion.

:46:25.:46:28.

is absolutely true the public would like to see this issue debated in

:46:28.:46:31.

parliament. We find three quarters of people saying that politicians

:46:31.:46:35.

ignore the popular will when it comes to sentences for serious

:46:35.:46:38.

crimes. We know many people see crime as one of the biggest

:46:38.:46:42.

problems facing Britain. We know when we ask people what is it about

:46:42.:46:46.

crime bothering you, it is sentences being too lenient. But

:46:46.:46:49.

when people sit down and consider the issues, in the way that MPs

:46:49.:46:55.

have to, their views turn out to be a bit more nuanced. If you take the

:46:55.:46:59.

killing of Sara Payne, people said at the time of her murder her

:46:59.:47:04.

killer should be executed. After all the judicial process, and life

:47:04.:47:08.

in jail, as the sentence, without remission, 84% admitted that

:47:08.:47:13.

judgment was right. As if to illustrate the problem, the most

:47:13.:47:16.

popular petition on the Government's website tonight is to

:47:16.:47:21.

keep the ban on capital punishment, getting more than double the

:47:21.:47:29.

support for the petition for bringing back the death penalty.

:47:29.:47:33.

Further Government developments on the stories developing last night

:47:33.:47:38.

on Newsnight, we reported claims by Heather Mills claiming her phone

:47:38.:47:43.

was hacked by a Mirror Group journalist. We carried an exclusive

:47:43.:47:49.

interview with Heather Mills, where she said she had been contacted by

:47:49.:47:54.

a Mirror Group journalist, who relayed to her, verbatim, a message

:47:54.:47:59.

that Sir Paul McCarthy had left on her voicemail, leading her to the

:47:59.:48:05.

conclusion that her phone had been hacked, apparently confirmed by an

:48:05.:48:11.

unnamed journalist. Added to this, an article written by Piers Morgan,

:48:11.:48:16.

not the journalist named to u where he explained during his time as

:48:16.:48:22.

editor of the Mirror, he was played a tape of a message left by Sir

:48:23.:48:26.

Paul McCarthy. Tonight there is word that Sir Paul McCarthy has

:48:26.:48:30.

entered the fray, talking to a group of journalists in Los Angeles,

:48:30.:48:34.

where he has said he will ask the police to investigate this

:48:34.:48:40.

allegation, decribing the hacking of phones as a horrendous invasion

:48:40.:48:45.

of privacy. When someone of his stature gets involved in this, it

:48:45.:48:49.

only makes people like Piers Morgan to explain how they heard this tape.

:48:49.:48:53.

No time for the papers, they all go on financial meltdown. That is all

:48:53.:49:03.
:49:03.:49:28.

from Newsnight tonight, join us After the rain of Thursday, Friday

:49:28.:49:32.

is looking good. With most places dry and bright, with some very

:49:32.:49:34.

pleasant sunshine, the rain clearing away from the Northern

:49:34.:49:37.

Isles during the course of the day and for the rest of the UK we are

:49:37.:49:41.

set fair. Mid-afternoon, broken cloud and sunshine, across the

:49:41.:49:45.

heart of England. Temperatures in the comfort zone, high teens, low

:49:45.:49:49.

20s, light winds. Warmer than that, across the London area. We have

:49:49.:49:53.

lost the oppressive heat which many of us have endured over the last

:49:53.:49:57.

couple of days. Some of the best sunshine around the coastal fringe.

:49:57.:50:02.

There will be some cloud building up inland, across the south west

:50:02.:50:06.

peninsula, it shouldn't threaten rain, it is a similar story across

:50:06.:50:12.

Wales too, some of the best of the blue skies will be on the beaches.

:50:12.:50:16.

In Northern Ireland the odd chance of a shower. Most places staying

:50:16.:50:21.

dry and bright, and for Scotland showers will be isolated.

:50:21.:50:25.

Temperatures 17-18. Friday looking OK, Saturday across the more

:50:25.:50:28.

northern areas is more mixed, there will be a threat of showers, and

:50:28.:50:32.

some heavy and slow moving. Further south, I think any showers

:50:32.:50:36.

remaining fairly isolated, a good chance on Saturday that many of us

:50:36.:50:42.

again will stay dry, high teens and low 20s, this is the set up on

:50:42.:50:47.

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