how Wall Street is about to monetise nature, or why Glasgow COP26 was a roaring success for the one percent – Whitney Webb pulls back the curtain on GFANZ

[T]he United Nations has been transformed since we last met here in Davos. The Organization has undergone a complete overhaul that I have described as a ‘quiet revolution.” . . . A fundamental shift has occurred. The United Nations once dealt only with governments. By now we know that peace and prosperity cannot be achieved without partnerships involving governments, international organizations, the business community and civil society. . . . The business of the United Nations involves the businesses of the world.”

— UN Secretary General Kofi Annan speaking to the World Economic Forum in 1998

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Anyone who has read John Perkins bestselling mea culpa “Confessions of an Economic Hitman” is already familiar with the modus operandi of global vulture capitalism. Employed by an engineering consultancy firm, Perkins tells us that his actual job was to persuade the leaders of poor countries to take on enormous loans for prestigious development projects from global financial institutions including the World Bank and other multilateral development banks (MDBs).

Once saddled with debts – and the word ‘saddled’ aptly characterises what it means to be heavily indebted – the countries would then be compelled to acquiesce to US pressure on a whole host of issues including, centrally, the adoption of neoliberal policies which require the privatisation of state assets and a vast transfer of wealth to enrich a handful of Western financial elites.

As Perkins tells us right at the top of the preface to his book:

Economic hit men (EHMs) are highly paid professionals who cheat countries around the globe out of trillions of dollars. They funnel money from the World Bank, the U.S. Agency for International Development (USAID), and other foreign “aid” organizations into the coffers of huge corporations and the pockets of a few wealthy families who control the planet’s natural resources. Their tools included fraudulent financial reports, rigged elections, payoffs, extortion, sex, and murder. They play a game as old as empire, but one that has taken on new and terrifying dimensions during this time of globalization.

I should know; I was an EHM.

Of course, what Perkins describes is old school neo-imperialism. This was how late-twentieth century imperialists captured foreign nations and controlled them without too much need of direct military intervention or “boots on the ground” because mechanisms of financialisation are sufficient means for the usurpation of governments and exploitation of resources. However, as the world moves forward and new opportunities for exploitation recede, methods of plunder and ways of disguising it are swiftly being upgraded. These days when everything is going ‘green’, neo-imperialism is no exception:

Today, MDBs are used as “instruments of power” that utilize debt to force developing nations to implement policies that benefit foreign interests rather than their own national interests. If GFANZ gets its way [see below], the MDBs of tomorrow will be used to essentially eliminate national sovereignty, privatize the “natural assets” (e.g., ecosystems, ecological processes) of the developing world, and force increasingly technocratic policies designed by global governance institutions and think tanks on ever more disenfranchised populations.

The warning above is taken from a recent article by independent journalist Whitney Webb entitled “UN-Backed Banker Alliance Announces ‘Green’ Plan to Transform the Global Financial System”.

GFANZ, short for the Glasgow Financial Alliance for Net Zero, as Webb explains, is an “industry-led and UN-convened” initiative. It was launched last April by John Kerry, US Special Presidential Envoy for Climate; Janet Yellen, US Secretary of the Treasury; Mark Carney, former chair of the Bank of England and now UN Special Envoy for Climate Action; who co-chairs the GFANZ alliance with US billionaire and former mayor of New York City, Michael Bloomberg.

According to their blurb (follow the link above):

GFANZ will work to mobilise the trillions of dollars necessary to build a global zero emissions economy and deliver the goals of the Paris Agreement. GFANZ will provide a forum for strategic coordination among the leadership of finance institutions from across the finance sector to accelerate the transition to a net zero economy.

Whitney Webb then follows the money:

GFANZ is composed of several “subsector alliances,” including the Net Zero Asset Managers Initiative (NZAM), the Net Zero Asset Owner Alliance (NZAOA), and the Net Zero Banking Alliance (NZBA). Together, they command a formidable part of global private banking and finance interests, with the NZBA alone currently representing 43 percent of all global banking assets. However, the “largest financial players” who dominate GFANZ include the CEOs of BlackRock, Citi, Bank of America, Banco Santander, and HSBC, as well as David Schwimmer, CEO of the London Stock Exchange Group and Nili Gilbert, chair of the Investment Committee of the David Rockefeller Fund.

Notably, another Rockefeller-connected entity, the Rockefeller Foundation, recently played a pivotal role in the creation of Natural Asset Corporations (NACs) in September. These NACs seek to create a new asset class that would put the natural world, as well as the ecological processes that underpin all life, up for sale under the guise of “protecting” them.

Continuing:

Details of GFANZ’s plan to deploy trillions of member investments into emerging markets and developing countries was published in the alliance’s inaugural “Progress Report,” the release of which was timed to coincide with the COP26 conference. The report details the alliance’s “near-term work plan and ambitions,” which the alliance succinctly summarizes as a “program of work to transform the financial system.” […]

In addition to the creation of “corporatist” “country platforms” that focus on specific areas and/or issues in the developing world, GFANZ aims to also further “corporatize” multilateral development banks (MDBs) and development finance institutions (DFIs) in order to better fulfill the investment goals of alliance members. Per the alliance, this is described as increasing “MDB-private sector collaboration.” The GFANZ report notes that “MDBs play a critical role in helping to grow investment flows” in the developing world. MDBs, like the World Bank, have long been criticized for accomplishing this task by trapping developing nations in debt and then using that debt to force those nations to deregulate markets (specifically financial markets), privatize state assets and implement unpopular austerity policies. The GFANZ report makes it clear that the alliance now seeks to use these same, controversial tactics of MDBs by forcing even greater deregulation on developing countries to facilitate “green” investments from alliance members.

The quote by Kofi Annan is also taken from Whitney Webb’s excellent article (which I firmly encourage you to read in full). It represents the final piece that completes the picture of the new neo-imperialist jigsaw. As she writes:

With the UN now essentially a vehicle for the promotion of stakeholder capitalism, it is only fitting that it would “convene” and support the efforts of a group like GFANZ to extend that stakeholder capitalist model to other institutions involved in global governance, specifically global financial governance. Allowing GFANZ members, that is, many of the largest private banks and financial institutions in the world, to fuse with MDBs, remake the “global financial governance system,” and gain increased control over political decisions in the emerging world is a banker’s dream come true. To get this far, all they have needed to do was to convince enough of the world’s population that such shifts are necessary due to the perceived urgency of climate change and the need to rapidly decarbonize the economy. Yet, if put into practice, what will result is hardly a “greener” world but a world dominated by a small financial and technocratic elite who are free to profit and pillage from both “natural capital” and “human capital.”

Click here to read Whitney Webb’s full article published on her official Unlimited Hangout website on November 5th.

On November 19th, Whitney Webb was interviewed by RJ Eskow on his show The Zero Hour where they discussed the issues raised in the article:

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Extracts from the text of Secretary-General Kofi Annan’s address, entitled “Markets for a Better World”, delivered on January 31, 1998 at the World Economic Forum, Davos, Switzerland. https://www.un.org/press/en/1998/19980130.SGSM6448.html

4 Comments

Filed under analysis & opinion, neo-liberalism

4 responses to “how Wall Street is about to monetise nature, or why Glasgow COP26 was a roaring success for the one percent – Whitney Webb pulls back the curtain on GFANZ

  1. How on earth do we get out of this hi-tech, oligarched conspiracy, the curse of the oh-so benign seeming public-private partnerships.

    Liked by 1 person

    • Wish I knew the answer to that. Exposure to light is good. And I think the left especially needs to get to grips with how we are all being manipulated in this way.

      Liked by 1 person

      • I am so furious with the Labour Party! They have twisted all the unscience on climate and covid into a very nasty little device that will backfire on us all.

        Liked by 1 person

      • Certainly on climate. On covid they seem to be more restrained so far and haven’t backed the covid passports – in fact thankfully there has been a bit of cross-party consensus on that which has so far saved us from the kind of draconian measures being introduced all across Europe (although I think Spain just voted against them too).

        The most depressing thing about Labour for me is its attempted centrist realignment to reestablish the old bipartisan status quo and with it, the neverending purge of the left from the party. This might also be one reason Johnson is increasingly hounded across the media (to raise Starmer’s comparative polling and make him look vaguely “electable”) although another could just be to twist the government’s arm over introducing tougher on covid measures – an agenda that will presumably now be ramped up because of the new variant.

        Thanks as always for sharing your thoughts. Very troubling times, Tish.

        Liked by 1 person

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