by KENDALL DIX
Countries of the Global South are facing a modern form of economic domination from foreign interests. The story of Europeans plundering Black and brown nations to profit from their natural resources is probably a familiar one. But now that nature itself has become commodified through the tourist economy, environmentalism functions as a justification for replicating the same old colonial power dynamics.
Under the banner of conservation, green nonprofits in the United States have begun using the government debt of previously colonized nations as a bargaining chip to force governments to create new nature preserves. Just over two years ago, the U.S.’s richest environmental organization, The Nature Conservancy, partnered with big European banks to coerce Seychelles, a small island nation 1,000 miles east of Kenya in the Indian Ocean, to issue “blue bonds.” These bonds are a new debt instrument that are supposed to be good for the environment and attract investors who believe Wall Street can be a driver of public good.
On October 29, 2018, the World Bank and The Nature Conservancy announced that the government of Seychelles would issue $15 million of blue bonds, “a pioneering financial instrument designed to support sustainable marine and fisheries projects.” Blue bonds function just like regular bonds. If a government or company wants to borrow money, it issues bonds that are sold in bond markets. The government gets a lump payment upfront and then pays the money with interest over time to the holders of the bonds, which can then be bought and sold on markets just like stocks are. Bonds are considered safe investments because governments rarely default on their debts. What makes blue bonds “blue” is that the issuer of the bond is supposed to use the money on ocean conservation. In the case of Seychelles, the nation issued the bonds to pay off some of its national debt and turn 30 percent of its coral reefs into marine protected areas (MPAs).
The Nature Conservancy says blue bonds are “an audacious plan to save the world’s oceans” and “could unlock $1.6 billion for ocean conservation.” Blue bonds are modelled on “green bonds,” another market-based climate solution that can enable companies to claim they are engaging in environmentally friendly solutions while actually achieving little positive environmental benefit. For example, a Spanish oil and gas company sold green bonds to finance upgrades to their oil refineries, a project of dubious environmental benefit given that it facilitates continued greenhouse gas emissions. Yet the project was sold to investors as a “green” project because it promised to marginally reduce emissions within Spain’s existing oil industry.
While the bulk of media coverage about the blue bonds deal heralded it as a win-win for conservation and Seychelles, nobody seemed to notice that a U.S. nonprofit used a sovereign nation’s foreign debt to leverage the closing of a huge portion of its fishing grounds. We should call the move to deliver conditional aid to Seychelles premised upon reordering its economy what it is: “neocolonialism.” Neocolonialism is the extension of colonial practices through the exertion of economic, political, or cultural pressures to control or influence previously colonized nations.
No fishing
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