In the Congo, United Nations peacekeepers stood and watched as Goma fell to rebel forces

Without US support, UN peacekeepers played a passive role.

It was another of those moments that will come back to haunt the United Nations. Just as its forces stood by during the Rwandan genocide of 1994 and in Bosnia’s Srebrenica massacre of 2005, so rebels of the M23 were allowed to walk into the eastern Congolese town of Goma unopposed.

The Congo is the UN’s largest peacekeeping operation in the world, with 19,000 troops and a budget of $1,402,278,300. At the time the town fell, the UN had 1,500 soldiers in Goma, backed by helicopters, artillery and tanks.

Despite having hit M23 with what the UN spokesman, Martin Nesirky, described as "hundreds" of rocket and missile rounds since the M23 attacks on the town began on 15 November, they were unable to prevent it being captured. Nesirky told journalists that the UN force was only there to support the Congolese army. When their poorly paid, ill disciplined troops broke and fled, the UN force commander on the ground decided to stand by as the rebels marched into town.

The real question is why the UN played such a passive role. Here the American position has been critical, particularly in stifling criticism of the Rwandan role in providing troops, weapons and ammunition to the M23. This has been extensively catalogued by UN experts. Their latest report (pdf) could hardly have been more explicit:

The Government of Rwanda continues to violate the arms embargo by providing direct military support to the M23 rebels, facilitating recruitment, encouraging and facilitating desertions from the armed forces of the Democratic Republic of the Congo, and providing arms, ammunition, intelligence and political advice. The de facto chain of command of M23 includes Gen. Bosco Ntaganda and culminates with the Minister of Defence of Rwanda, Gen. James Kabarebe.

Carina Tertsakian of Human Rights Watch told the New Statesman: “The US government has been surprisingly inactive and silent, despite the significant influence they have with the Rwandan government.”

Jason Sterns, a former UN investigator, lays the blame at the door of the Susan Rice, President Obama’s ambassador to the United Nations. Sterns argues that Rice has blocked criticism of the Rwandans. She “…has emerged as a holdout within American foreign policy, a sort of minority report to the prevailing criticism of Rwanda and the M23.” Rice prevented any explicit mention of Rwanda in the latest UN resolution on the Congolese crisis, leaving the text to call instead for “all relevant actors to use their influence on the M23 to bring about an end to attacks.”

Russia, France and – more recently – Britain have been developing a tougher line. This has finally begun to emerge. On 22 November William Hague and Justine Greening put out a joint Foreign Office–DFID press release.

"We judge the overall body of evidence of Rwandan involvement with M23 in the DRC to be credible and compelling,” they said.  “We will be studying the implications of this report in full, but these allegations will necessarily be a key factor in future aid decisions to the Government of Rwanda.” That decision is said to be close to being announced, and could leave Rwanda without British funding – the largest source of foreign aid the country has enjoyed.

Officially, Rwanda, Congo and the Congolese are in agreement on the threat posed by the M23. On 21 November the three presidents met in the Ugandan capital, Kampala. A joint declaration was signed, calling for the M23 to leave Goma.

This was followed by a meeting of the Conference of the Great Lakes, three days later, again in Kampala. This brought together a wider group of leaders, including the presidents of Angola, Tanzania and Kenya.  But on this occasion, significantly, Rwanda’s Paul Kagama was absent. The heads of state again called for the M23 to pull back 20 kilometres from Goma within two days, to allow the deployment of UN peacekeepers and a ‘neutral force.’

If, as the UN group of experts and many others believe, Rwanda, and to a lesser extent Uganda, are behind the M23, what is their long term goal?

This is less than clear, but there are indications that President Paul Kagame has the long-term objective of establishing a buffer state along his western border. Such a state would prevent any further threat from the defeated Hutu Rwandan army that fled into Congo at the end of the Rwandan genocide. They remain an armed presence in the region, in the form of the FDLR. 

There are suggestions that Rwanda plans to establish a "République des Volcans" in the area. This – it is claimed – would be an extension of an ancient Hima-Tutsi empire. Both Paul Kagame of Rwanda and Uganda’s Yoweri Museveni have been portrayed as descendents of this tradition in the past – accusations they have denied.

Certainly it will require an immense effort for anyone to gain control over the Kivus. They are, today, held by a myriad of rebel movements, which fight for the control of the gold, cassiterite, coltan, wolfram, timber and diamonds to be found in profusion. Nor would the step necessarily receive the support of the Tutsi community in eastern Congo – the Banyamulenge.

The inability of the UN to hold Goma and the failure of Congolese government forces in the face of M23 attacks has taken a terrible toll on the local population. Christina Corbett, in Goma for Oxfam, says 140,000 have been displaced by this round of fighting alone. “We are very concerned that human rights violations – including forced labour, rape and illegal taxation – are taking place so regularly; they are not even being reported any more,” she says.

But international attention is scarcely concentrated on Congo. The fighting in Syria and Israeli attacks on Gaza are always more pressing concerns – even though the numbers of killed, injured and displaced are invariably many times higher. Central Africa is likely to remain a cauldron of conflict for many years to come.

A UN peacekeeper stands on the roadside in the east of the Congo. Photograph: Getty Images

Martin Plaut is a fellow at the Institute of Commonwealth Studies, University of London. With Paul Holden, he is the author of Who Rules South Africa?

Ralph Orlowski / Getty
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Labour's investment bank plan could help fix our damaging financial system

The UK should learn from the success of a similar project in Germany.

Labour’s election manifesto has proved controversial, with the Tories and the right-wing media claiming it would take us back to the 1970s. But it contains at least one excellent idea which is certainly not out-dated and which would in fact help to address a key problem in our post-financial-crisis world.

Even setting aside the damage wrought by the 2008 crash, it’s clear the UK’s financial sector is not serving the real economy. The New Economics Foundation recently revealed that fewer than 10% of the total stock of UK bank loans are to non-financial and non-real estate businesses. The majority of their lending goes to other financial sector firms, insurance and pension funds, consumer finance, and commercial real estate.

Labour’s proposed UK Investment Bank would be a welcome antidote to a financial system that is too often damaging or simply useless. There are many successful examples of public development banks in the world’s fastest-growing economies, such as China and Korea. However, the UK can look closer to home for a suitable model: the KfW in Germany (not exactly a country known for ‘disastrous socialist policies’). With assets of over 500bn, the KfW is the world’s largest state-owned development bank when its size is measured as a percentage of GDP, and it is an institution from which the UK can draw much-needed lessons if it wishes to create a financial system more beneficial to the real economy.

Where does the money come from? Although KfW’s initial paid-up capital stems purely from public sources, it currently funds itself mainly through borrowing cheaply on the international capital markets with a federal government guarantee,  AA+ rating, and safe haven status for its public securities. With its own high ratings, the UK could easily follow this model, allowing its bank to borrow very cheaply. These activities would not add to the long-run public debt either: by definition an investment bank would invest in projects that would stimulate growth.

Aside from the obviously countercyclical role KfW played during the financial crisis, ramping up total business volume by over 40 per cent between 2007 and 2011 while UK banks became risk averse and caused a credit crunch, it also plays an important part in financing key sectors of the real economy that would otherwise have trouble accessing funds. This includes investment in research and innovation, and special programs for SMEs. Thanks to KfW, as well as an extensive network of regional and savings banks, fewer German SMEs report access to finance as a major problem than in comparator Euro area countries.

The Conservatives have talked a great deal about the need to rebalance the UK economy towards manufacturing. However, a real industrial policy needs more than just empty rhetoric: it needs finance. The KfW has historically played an important role in promoting German manufacturing, both at home and abroad, and to this day continues to provide finance to encourage the export of high-value-added German products

KfW works by on-lending most of its funds through the private banking system. This means that far from being the equivalent of a nationalisation, a public development bank can coexist without competing with the rest of the financial system. Like the UK, Germany has its share of large investment banks, some of which have caused massive instabilities. It is important to note that the establishment of a public bank would not have a negative effect on existing private banks, because in the short term, the UK will remain heavily dependent on financial services.

The main problem with Labour’s proposal is therefore not that too much of the financial sector will be publicly owned, but too little. Its proposed lending volume of £250bn over 10 years is small compared to the KfW’s total financing commitments of  750 billion over the past 10 years. Although the proposal is better than nothing, in order to be effective a public development bank will need to have sufficient scale.

Finally, although Brexit might make it marginally easier to establish the UK Investment Bank, because the country would no longer be constrained by EU State Aid Rules or the Maastricht criteria, it is worth remembering that KfW’s sizeable range of activities is perfectly legal under current EU rules.

So Europe cannot be blamed for holding back UK financial sector reform to date - the problem is simply a lack of political will in the current government. And with even key architects of 1980s financial liberalisation, such as the IMF and the economist Jeffrey Sachs, rethinking the role of the financial sector, isn’t it time Britain did the same?

Dr Natalya Naqvi is a research fellow at University College and the Blavatnik School of Government, University of Oxford, where she focuses on the role of the state and the financial sector in economic development

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