Glencore buys out Dan Gertler, Israeli businessman accused of bribing DRC’s President Joseph Kabila

It’s hard to imagine a more fitting embodiment of the sad story of economic vandalism in the DRC than the friendship between Israeli businessman Dan Gertler and President Joseph Kabila. Regular readers know that Gertler’s pillage of the DRC is a pet topic on this blog – see here, here, here and here, for example.

Now FT’s  has yet another story on how mining giant Glencore has been forced to buy out Gertler over accusations of bribery:

After years of doing business together in one of the world’s poorest countries, Glencore has dissociated itself from Dan Gertler, an Israeli mining tycoon implicated in the payment of bribes to the ruler of the Democratic Republic of Congo.

Glencore’s announcement last month that it would pay $534m to Mr Gertler to buy him out from their shared prize assets in the DRC — two giant copper mines — is designed to insulate the London-listed mining cum trading behemoth from the fallout of a widening corruption investigation involving the Israeli businessman, say people who have followed the saga. The decision by Ivan Glasenberg, Glencore’s chief executive, highlights the risks of doing business in the resource-rich, war-torn central African country, where Mr Gertler wields influence by virtue of his close friendship with Joseph Kabila, the DRC president.

Settlement documents released in September by US authorities in a scandal involving Och-Ziff, the New York hedge fund, alleged that an “Israeli businessman” — whose description clearly matches Mr Gertler — had paid bribes to Mr Kabila in order to obtain special access to mining rights in the DRC.

One banker who does dealmaking in the mining sector and owns Glencore shares says the company’s purchase of Mr Gertler’s stakes in the two DRC copper mines is defensive. “Buying out Gertler is primarily about detoxification for Glencore,” he adds. “The Och-Ziff investigation in the US has made it very risky to have clear ties to him.”

More on this here. Definitely worth a quick read.

President Joseph Kabila was paid $7m in bribes. Dan Gertler’s buyout is worth $534m in cash, paid by Glencore.

Intrahousehold Inequality Across Income Levels: Evidence From Nutrition Data

Antipoverty policies in developing countries often assume that targeting poor households will be reasonably effective in reaching poor individuals. This paper questions this assumption, using nutritional status as a proxy for individual poverty. The comprehensive assessment for Sub-Saharan Africa reveals that undernourished women and children are spread widely across the distribution of household wealth and consumption. Roughly three-quarters of underweight women and undernourished children are not found in the poorest 20 percent of households, and around half are not found in the poorest 40 percent. The mean joint probability of being an underweight woman and living in the poorest wealth quintile is only 0.03. Countries with higher overall rates of undernutrition tend to have a higher share of undernourished individuals in nonpoor households. The results are consistent with evidence of substantial intrahousehold inequality.

…. the paper has provided a comprehensive study for 30 countries in Sub-Saharan Africa. We find a reasonably robust householdwealth effect on individual undernutrition indicators for women and children. Nonetheless, on aggregating across the 30 countries studied here, about three-quarters of underweight women and undernourished children are not found in the poorest 20% of households when judged by the household wealth index in the Demographic and Health Surveys.

That’s Caitlin Brown, Martin Ravallion, and Dominique van de Walle in a new World Bank working paper. 

 

Naming Diseases After One’s Enemies

This is an interesting graphic showing the initial names giving to syphilis in various jurisdictions.
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The WHO recently came out against naming diseases after people, foods, animals, occupations, or places. However, this decision has raised some new concerns. According to Science:

Many scientists agree that disease names can be problematic, but they aren’t sure the new rulebook is necessarily an improvement. “It will certainly lead to boring names and a lot of confusion,” predicts Linfa Wang, an expert on emerging infectious diseases at the Australian Animal Health Laboratory in Geelong. “You should not take political correctness so far that in the end no one is able to distinguish these diseases,” says Christian Drosten, a virologist at the University of Bonn, Germany.

Naming diseases has long been a fraught process. Badly chosen names can stigmatize people, as did gay-related immune deficiency, an early name for AIDS. They can also lead to confusion and hurt tourism and trade. The so-called swine flu, for instance, is not transmitted by pigs, but some countries still banned pork imports or slaughtered pigs after a 2009 outbreak. More recently, some Arab countries were unhappy that a new disease caused by a coronavirus was dubbed Middle East respiratory syndrome.