Contributors
Get R.I. pension money out of Sudan
01:00 AM EDT on Tuesday, March 20, 2007
WHILE THE INTERNATIONAL community has remained paralyzed, the Sudanese government for four years has sponsored a campaign of rape, displacement and organized murder, killing more than 400,000 people and displacing upwards of 3 million. Called “the worst humanitarian crisis in the world today” by United Nations officials, Darfur marks the first time that a U.S. government has declared genocide while the atrocities are “ongoing.”
While we can all agree that something needs to be done to end the genocide, it is easy to categorize the situation as a foreign problem that we should leave to the international community. But Rhode Island must play its role in helping to end genocide in Darfur.
While American companies are prohibited from conducting business in Sudan, the State of Rhode Island invests millions of public-pension-fund money in foreign companies that provide substantial revenues to the Sudanese government — revenues that directly fund the atrocities in Darfur. Furthermore, many companies are uprooting Sudanese civilians and providing Sudanese aircraft with the fuel they need to bomb Darfurian villages. Unfortunately, our money is invested in a number of these companies.
We must ensure that our pension money is not helping to facilitate genocide. To this end, along with state Sen. Rhoda Perry, I recently introduced House Bill 5142, which would require the State Investment Commission (SIC) to divest its assets from targeted companies facilitating genocide in Sudan. The bill has been met with widespread support, including the enthusiastic approval of Rhode Island General Treasurer Frank Caprio, who made Sudan divestment a key campaign issue during his recent election.
Critics of divestment claim that it can hurt the very people it is meant to help: the people of Sudan. For this reason, HB 5142, constructed with the aid of the Sudan Divestment Task Force, supplies specific criteria to identify companies meriting divestment. This “targeted divestment” strategy only affects the handful of companies widely regarded as the worst offenders. This ensures that Rhode Island would not divest from companies providing humanitarian benefits to the Sudanese.
Skeptics also worry that divestment would harm Rhode Island’s investment returns. We recognize that the SIC’s objective is to maximize pension-fund returns. HB 5142, however, would let the SIC maintain this mission while simultaneously ensuring the fund does not inadvertently help to facilitate genocide. Further, divestment would affect a very small portion of Rhode Island’s total investment holdings, and a provision in the bill would let the SIC opt out of divestment if investment returns begin to fall. HB 5142 would let Rhode Island prudently and effectively divest from Sudan.
I introduced a similar divestment bill during the 2006 legislature. Unfortunately, the bill died in the House Finance Committee. In the year since the bill’s failure, the atrocities have worsened in Darfur. The government has violated a comprehensive peace agreement and a cease-fire, increased attacks, and barely paid lip service to the international community’s weak attempt to deploy a U.N. force into the region. Hundreds of thousands of Darfurians remain in peril to this day, Darfurians we can save.
The last year, however, has also seen the growing success of the divestment movement. Sudan, increasingly reliant on foreign direct investment and historically responsive to economic pressure, has paid much attention to the emerging movement. In purchasing a big ad in The New York Times, issuing press releases against divestment, and trying to personally engage divestment advocates, Sudan has displayed an energy in combating the movement we only wish it put into protecting Darfurians.
Companies targeted for divestment have also recently recognized the efficacy of the divestment movement. Both the Swiss power company ABB and the German telecommunications company Siemens suspended non-humanitarian operations in Darfur, citing divestment as a contributor to their decision. This behavior will undoubtedly spread to other companies in coming months.
Rhode Island can play its role by contributing to the international movement. While six states, including Connecticut and California, have passed divestment legislation, over 25 more will consider bills this session. With every state using language similar to Rhode Island’s, we can help set the tone for the country by quickly and effectively passing HB 5142. Rhode Island can take the phrase “Never Again” to heart by passing this divestment legislation, proving that we will not let genocide occur on our watch, or on our dime.
Joseph Almeida is a Rhode Island state representative.
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