Spring 2004 Newsmagazine Volume 34, Number 1

Mad CowIn the U.S.A.

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P R E S I D E N T ’ S C O L U M N

Friends of the Earth hasbeen keeping tabs sincethe beginning of Bush’sterm on his administra-tion’s anti-environment

actions. The “Chronology ofEnvironmental Destruction” can befound on our Web site, www.foe.org, orjust give us a call and we’ll mail someto you to pass out to friends.

Bush continues to tear apart ourmajor environmental laws and regula-tions. In his new budget, PresidentBush singled out the EnvironmentalProtection Agency for the secondbiggest cut of any federal agency.Programs that combat water pollutionwill be especially hard hit.Additionally, a massive $320 billionhighway bill pending in Congress isset to cripple parts of the Clean AirAct and the National EnvironmentalPolicy Act, bedrock environmentallaws.

Moreover, it seems even nationalsecurity concerns stop when theybump up against special interests.When it comes to rerouting very haz-ardous rail cargoes away from highthreat target cities, such as LosAngeles, the District of Columbia andSeattle, the Bush administration won’tbudge. Why? It would inconveniencethe railroads and cost them money.And what about the failure to dealwith risks at refineries, chemical pro-duction facilities and nuclear powerplants?

Besides being an election year,2004 also marks the 60th anniversaryof the World Bank, which has distin-guished itself this past decade byfinancing projects that harm the envi-ronment while failing to “cultivate a

world free of poverty,” the Bank’s mis-sion. Friends of the Earth believes thatthe World Bank should be solvingproblems, not accelerating the destruc-tion of natural resources withill-conceived, unsustainable develop-ment projects. We intend to crash theBank’s birthday party and highlight theneed for change.

One of the beneficiaries of WorldBank support is ExxonMobil. A newFriends of the Earth Internationalreport shows that ExxonMobil hasbeen responsible for a staggering 5 percent of the global warming emis-sions on our planet and it’s timeExxonMobil be held accountable, notgiven more money to do even moreharm.

The safety of our food is also atrisk. The first mad cow incident in theUnited States was reported inDecember. Friends of the Earthsounded the warning last October thatthe number of U.S. firms violating therules intended to protect our food sup-ply from mad cow had almost tripledsince April 2002. The U.S. Food andDrug Administration ignored our

warnings and continued to allow cor-porate factory farms to feed cowsblood, discarded pet food and slaugh-terhouse waste, which can spread madcow disease because they containinfectious material such as nerve tissuefrom rendered cattle.

On a more positive note, I recentlywatched the Corps of Engineers blowup a 100-year-old, 22-foot-high damon Virginia’s Rappahannock River,opening up 700 miles of this scenicriver and all its tributaries for shad,herring and striped bass. This is a bigvictory in the struggle to restore theonce magnificent fisheries of theChesapeake Bay and a great milestonein freeing rivers from the dams thatchoke them.

Your support makes victories likethis possible. Voting in this year’s elec-tion is one of the best ways you canhelp forward Friends of the Earth’smission to defend the environment andchampion a healthy and just world.

Brent Blackwelder

Bush Keeps Up the Bad WorkMember Notice: Avis OgilvyMoore, board chair for Friendsof the Earth, is running uncon-tested for an open slot onFriends of the Earth’s board of directors. All members areinvited to the annual boardmeeting, June 28, inWashington, D.C., to cast their vote or may vote by proxyballot from the next news-magazine. More to come.

Spring 2004 • Volume 34, Number 1 3

Table of Contents

Volume 34, Number 1 Spring 2004

Friends of the Earth (ISSN: 1054-1829) is published quarterly by Friends of the Earth, 1717 Massachusetts Ave., NW, Suite 600, Washington, DC 20036-2002, phone 202-783-7400,fax 202-783-0444, e-mail: foe@foe.org, Web site: www.foe.org. Annual membership dues are $25, which includes a subscription to Friends of the Earth.

The words “Friends of the Earth” and the FoE logo are exclusive trademarks of Friends ofthe Earth, all rights reserved. Unless otherwise noted, articles may be reprinted without chargeor special permission. Please credit Friends of the Earth and the article author; send us a copy.Friends of the Earth is indexed in the Alternative Press Index. Periodicals postage paid atWashington, DC.

Board of DirectorsAvis Ogilvy Moore, Chair; Dan Gabel, Vice Chair ;Marion Hunt-Badiner, Secretary; David Zwick,Treasurer; Ed Begley, Jr.; Jayni Chase; Harriett Crosby;Clarence Ditlow; Michael Herz; Ann Hoffman; DougLegum; Patricia Matthews; Charles Moore; EdwardoLao Rhodes; Arlie Shardt; Doria Steedman; Rick Taketa;Alicia Wittink

StaffBrent Blackwelder, PresidentNorman Dean, Executive DirectorSandra Adams-Morally, Membership AssociateLisa Archer, Campaigns Coordinator for Health and

Environment ProgramMichelle Chan-Fishel, International Policy AnalystHugh Cheatham, Chief Financial OfficerKeira Costic, Publications and Web ManagerLeslie Fields, Global Sustainability Initiative DirectorColleen Freeman, Policy AnalystRosemary Greenaway, Membership and Marketing

DirectorLisa Grob, Executive AssistantVonetta Harris, AccountantDavid Hirsch, Program DirectorYasmeen Hossain, Program AssociateCheryl Johnson, Receptionist/Office AssistantDiane Minor, Chief Development OfficerSherri Owens, Office ManagerChris Pabon, Foundation Relations DirectorErich Pica, Economics for the Earth Program DirectorGreg Smith, Transportation DirectorJon Sohn, International Policy AnalystKristen Sykes, Interior Department WatchdogDavid Waskow, Trade and Investment Policy CoordinatorChris Weiss, D.C. Environmental Network DirectorSara Zdeb, Legislative Director

Publications StaffKeira Costic, EditorLisa Grob, Assistant EditorDesign by JML Design

InternsTimothy Burroughs Kate LinehanMaya James Lauren PincusAvtar Khalsa Pantelis SolomonPerri Kramer Lyra Spang

Consultants/ AdvisorsLarry BohlenBrian DunkielBill FreeseJohn W. JensenDorothee Krahn

Member GroupsArgentina, Australia, Austria, Belgium,Benin, Bolivia, Brazil, Bulgaria,Cameroon, Canada, Chile, Colombia,Costa Rica, Croatia, Curacao, Cyprus,Czech Republic, Denmark, Ecuador, ElSalvador, England-Wales-Northern

Ireland, Estonia, Finland, France, Georgia, Germany,Ghana, Greece, Grenada, Haiti, Honduras, Hungary,Indonesia, Ireland, Italy, Japan, Latvia, Lithuania,Luxembourg, Macedonia, Malaysia, Mali, Malta,Mauritius, Nepal, Netherlands, New Zealand, Nicaragua,Nigeria, Norway, Papua New Guinea, Paraguay, Peru,Philippines, Poland, Scotland, Sierra Leone, Slovakia,South Africa, South Korea, Spain, Sri Lanka, Sweden,Switzerland, Togo, Tunisia, Ukraine, United States,Uruguay

AffiliatesAfrica: Earthlife Africa; Australia: Mineral PolicyInstitute; Australia: Rainforest Information Centre;Brazil: Amigos da Terra Amazonia - AmazôniaBrasileira; Brazil: Grupo de Trabalho Amazonico; CzechRepublic: CEE Bankwatch; Japan: Peace Boat; LatinAmerica: REJULADS; Middle East: Friends of theEarth (Israel, Jordan and Palestine); Netherlands: Actionfor Solidarity, Equality, Environment and DevelopmentEurope; Netherlands: Stichting De Noordzee (North SeaFoundation); Netherlands: Corporate EuropeObservatory; United States: International RiversNetwork; United States: Project Underground; UnitedStates: Rainforest Action Network

Mad Cow In the U.S.A. . . . .Pg. 4

Terrorist Threat: DangerousCargo on the Move . . . . . . .Pg. 7

World Bank:Reflection at 60 . . . . . . . . . .Pg. 8

Call to All Shareholders:Vote! . . . . . . . . . . . . . . . . . .Pg. 10

From Delivering Pizzas to Protecting Parks and Wildlife . . . . . . . . . . . .Pg. 11

Building Highways Over Communities . . . . . .Pg. 12

Action on Climate Change . . . . . . . . . . . . . . . .Pg. 13

Be Part of the Solution! . . . . . . . . . . . . . .Pg. 14

Our Mission:Friends of the Earth defends theenvironment and champions ahealthy and just world.

Friends of the Earth is printed with soy ink on 100% recycled paper, 30% post-consumer content. Bleached without chlorine.

Friends ofthe EarthInternational

UNIONBUG

Earth Share giving campaigns allowyou to designate a donation to Friendsof the Earth. Federal employees candonate through the Combined FederalCampaign by marking #0908 on theirpledge forms. To set up an Earth Sharecampaign at your workplace, contactRosemary Greenaway at 202-222-0722.

By Lisa Archer, Bill Freese and Lisa Grob

Michelle Bowendied slowly. Forthree weeks the29-year-old was ina coma after giv-

ing birth to her son via emergencycaesarean section. Her healthpainfully deteriorated as her nervoussystem collapsed. Stephen Churchill,previously a good student, saw hisgrades slip, started feeling depressedand dizzy, then began to experienceterrifying hallucinations; he was deadin 12 months at age 19. Peter Hall,20, showed the first signs of depres-sion around Christmas in 1994;within a year he was bedridden,almost blind, unable to eat by himselfand no longer able to communicatewith family members.

All of these people had one thingin common. They were among thefirst victims of Britain’s mad cowepidemic. They died of one of themost terrifying diseases imaginable,Creutzfeldt-Jakob disease (CJD), arelentlessly progressive and invari-ably fatal dementia which usuallyattacks people in their 60s. Casessuch as these involving people underage 30 were exceedingly rare untilthe mid-1990s.

Scientists dubbed this new formof the CJD as “new variant” ornvCJD – it is now abbreviated vCJD.It is contracted by eating beef andnerve tissue from cattle infected withmad cow disease (a.k.a. BovineSpongiform Encephalopathy (BSE)).To date, vCJD has killed 143 peoplein England, plus 10 people in othercountries.

The source of this horrible dis-ease? Cattle cannibalism.

Cattle CannibalismMad cow disease is essentially asymptom of the larger problem ofindustrial agriculture. While we’veknown for years that polluted air andwater along with animal cruelty arethe products of factory farms, we’reonly now realizing its direct effectson our own health. Mad cow is onlyone of several diseases emergingfrom factory farms.

Mad cow might have remained arare disease were it not for cattle can-nibalism, an industrial agriculturalpractice made common over the lasttwo decades. The remains of deadcattle (as well as diseased animals,road kill, dead pets and zoo animals)are processed into animal feeds thatare fed to cattle. Since cattle canbecome infected with mad cow byconsuming less than 1 gram of dis-eased tissue, one diseased carcass can

contaminate a large batch of animalfeed, sickening hundreds of animals.These hundreds, rendered into animalfeed, can in turn infect thousands.This is how experts explain the madcow epidemic in Britain.

In 1997, the U.S. Food and DrugAdministration (FDA) established apolicy to prohibit the feeding of mostruminant (cattle, sheep, deer, etc.)proteins to other ruminants to preventmad cow from occurring in theUnited States. Yet, this rule has loop-holes that allow the risky practice ofcattle cannibalism to continue.

For instance, farmers wereallowed to feed calves cattle blood asa substitute for milk, despite the find-ing that blood can transmit thedisease. Factory farms are still legallyfeeding horses, pigs and poultry theremains of slaughtered cattle, includ-ing high-risk brain and spinal cordtissue, in the form of meat and bonemeal. The remains of these cattle-fedanimals, which could be silent carri-ers of the disease, can in turn be

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C O V E R S T O R Y

Mad Cow In the U.S.A.

A dead cow lies outside a Southern California dairy and will be picked up and processedinto animal feed. About 1 million pounds of uneaten poultry feed combined with poultry-litter are fed to cattle each year – one of many indirect ways for cattle to become infectedwith mad cow.

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Reader Warning: Many people may find thisstory unsettling. It discusses factory farmingand its dire effects on human health.

Spring 2004 • Volume 34, Number 1 5

rendered and fed back to cattle, anindirect pathway for infective cat-tle tissue to be recycled back tocattle.

Another unsavory loophole inFDA policy: About 1 million tonsof poultry-litter – which containsnot only excrement but alsouneaten poultry feed that may beof ruminant origin – are fed to cat-tle each year. This process createsanother indirect route for cattle tocontinue feeding on cattle. Petfood that contains ruminant meatand bone meal may also end up ascattle feed.

To make matters worse, a2000 FDA survey found that onein four American slaughterhousesand feed processing plants fails totake measures to avert mad cowdisease, such as the proper label-ing of feed that contains animalparts and implementing systems toprevent commingling of cattle feedwith feed for other animals. In addi-tion, a 2001 Government AccountingOffice audit showed that the FDA’senforcement of its “feed ban” hasbeen extremely poor. Significantflaws include not identifying 1,200 ormore feed-related firms that shouldbe subject to the ban, not issuingwarning letters and not penalizinghundreds of firms found out of com-pliance.

“There is no excuse for cattlefeed suppliers to be in violation ofgovernment rules to prevent mad cowdisease,” said Dr. Brent Blackwelder,president of Friends of the Earth.“The FDA needs to enforce the lawand close major loopholes. Until itdoes, the best way for people to avoidthe risk of mad cow disease is to eatorganic, grass fed beef or vegetarianalternatives.”

Mad Cow U.S.A.On Dec. 23, 2003, as manyAmericans visited grocery stores inpreparation for their holiday meals,

the U.S. Department of Agriculture(USDA) announced the firstAmerican case of mad cow. TheUSDA found an adult Holstein cowinfected with the disease inWashington state – leaving many towonder about the safety of the coun-try’s food supply.

More than 40 countries, includ-ing Japan, Mexico and Australia,immediately banned imports ofAmerican beef. Furthermore, manyof these countries, such as Japanrefuse to allow U.S. beef into theirmarkets until the United States testsall cattle that go to slaughter. Thosebans could cost the U.S. economy $2 billion in 2004, says Chris Hurt,agricultural economist at PurdueUniversity.

In an effort to calm public fears,Agriculture Secretary Ann Venemanstated that the nation’s beef was safeand that she planned to eat beef for her holiday meal. This response isreminiscent of the British govern-ment’s initial reaction to the 1989mad cow outbreak in England, when

then-Agriculture Minister JohnGummer fed his 4-year-old daugh-ter a hamburger on television toprove how safe the meat was. Butnow we know what later happenedin Britain – 140 people dead andmillions of cattle destroyed.

In the United States, officialslike Veneman and her predecessorshave for years stated that the coun-try is free of mad cow – that it“couldn’t happen here.” But thereason for their certainty is not thethoroughness of the USDA’s test-ing. In fact, it is something of amiracle that the single Americanmad cow was detected at all. Hadshe not suffered birthing injuriesand consequently had difficultystanding, it is extremely unlikelyshe would have been tested.

Last year, the United Statesonly tested 20,000 cattle for madcow disease – less than 0.001 per-

cent of the 36 million animalsslaughtered each year. While thatnumber has been increased to268,000 for 2004, other countries domuch more to protect their citizens.In Japan, all cattle slaughtered forfood are tested for BSE. In Europe,all cattle age 30 months and older,regardless of category, are tested.Testing costs are not prohibitive.Testing actually costs just a few centsper pound.

A Hidden Epidemic?Classic CJD is of unknown cause andstrikes mainly the elderly. Recent evi-dence that BSE can cause sporadicCJD as well as vCJD may explain therising numbers of CJD cases inEurope, and the disturbing trend toyounger CJD cases in the UnitedStates. Additionally, several autopsystudies suggest that 3 to 13 percent ofpatients diagnosed with Alzheimer’sactually suffered from CJD.

(continued on page 6)

C O V E R S T O R Y

Scientists agree that mad cow is due to deformedproteins call prions. Prions somehow induce normalbrain proteins to become deformed in the sameway, causing brain degeneration. Cooking does notkill prions and they cannot be inactivated with disin-fection measures that kill other disease-causingagents like bacteria and viruses.

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These findings imply that at least120,000 CJD cases may be goingundetected and excluded from offi-cial statistics. If even a smallpercentage of these misdiagnosedCJD cases are caused by eating BSE-infected meat, the incidence ofhuman mad cow is much worse thananyone has imagined up until now.Yet, the U.S. Centers for DiseaseControl (CDC) still refuse to makeCJD a reportable disease. This classi-fication would require the CDC tocollect data on a national basis,enabling them to track the number ofoccurrences nationally.

The Solution: Safer Foodfrom Safer FarmsFriends of the Earth, food safety,farm, environmental and other publicinterest groups have warned for yearsthat steps taken to prevent the spread

of mad cow in the United States wereflawed and inadequate.

For example, in October 2003,Friends of the Earth announced thatthere had been a three-fold increasein the number of firms violating madcow prevention feed rules.Additionally, for the majority of thesecases there was no indication of anyFDA enforcement action. In fact, theFDA had previously identified twocattle feed mills in violation of theregulations near the farm where the

first U.S. case of mad cow diseasewas found.

While regulators have madesome progress since the first madcow was discovered in the UnitedStates, including banning spinalcords and brains from entering ourfood supply, many problems remain.

Clearly, we need to stop feedpractices that can lead to mad cow.Our food supply may never be com-pletely safe from mad cow until allbeef is tested and more research intowhether or not vCJD is already in theUnited States.

Friends of the Earth is currentlyworking with a coalition of foodsafety, animal welfare, consumer,agriculture and CJD victims groupsto stop the spread of mad cow. A safefood supply and a sustainable meansof producing it could not be moreessential to the health and wealth ofthis country.

Take ActionYour letters are needed to prevent thebeef industry from stopping new reg-ulations to prevent mad cow disease!

Please write Health and HumanServices Secretary Tommy G.Thompson and ask him to implementa total ban on feeding mammals tocattle and other ruminants as soon aspossible to prevent mad cow disease.Please thank him for moving in theright direction by initiating regula-tions to ban the feeding ofmammalian blood, poultry litter andrestaurant plate waste to ruminants.Ask him to make sure the beef indus-try does not weaken or delay thesefeed restrictions.

Tommy G. ThompsonSecretary, Health and Human Services200 Independence Avenue, SWWashington, D.C. 20201Phone: 877-696-6775

For more information contactLisa Archer, 202-222-0712 orlarcher@foe.org ■

CJD Voice • Center for Food Safety • Center for Media & Democracy •Consumer Federation of America • Consumers Union • The Creutzfeldt-JakobDisease Foundation • Farm Aid • Farm Sanctuary • Friends of the Earth • GlobalResource Action Center for the Environment • Government AccountabilityProject • The Humane Society of the United States • Institute for Agricultureand Trade Policy • Organic Consumers Association • Public Citizen

Friends of the Earth is coordinating the above-mentioned groups to call onpublic officials, food processing companies, the agriculture industry and med-ical and veterinary professionals to adopt the following measures to ensurethat mad cow and mad cow-like diseases pose no threat to our health, to oureconomy and to the welfare of animals:

1 Test all cattle over 20 months of age for mad cow disease2 Stop the feeding of blood, slaughterhouse waste, manure, road kill and

other mammalian byproducts to food animals3 Keep all “downer” animals, not just cattle, out of the food and feed sup-

ply and require humane euthanasia4 Require identification and tracking of animals5 Implement country of origin labeling of meat6 Give the USDA the authority to recall contaminated meat and disclose

the names of companies that handle recalled items7 Require reporting and investigation of all cases of brain-wasting disease

in people to see if they are caused by mad cow, mad deer or other similaranimal diseases

Mad Cow Disease Prevention Platform

Be Mad Cow Safe!To lower their risk, consumersshould buy organic, free rangemeat or vegetarian alternatives.Organic producers aren’t allowedto use any animal by-products intheir feed.

C O V E R S T O R Y

Spring 2004 • Volume 34, Number 1 7

By Chris Weiss

Over 300 million ship-ments of hazardousmaterials are quietlyrumbling through ourneighborhoods and fol-

lowing us on our daily commutes withlittle or no government oversight.

“It is very clear that there are noregulations for the routing of haz-ardous materials by rail, and there isno law or regulation outlining what thecities or states can do to protect them-selves from terrorism,” said Friends ofthe Earth expert Fred Millar.

The U.S. Department of HomelandSecurity identified the nation’s capital –along with Chicago, Houston, LosAngeles, San Francisco, Seattle andNew York – as the seven High ThreatTarget Cities. The insurance industryconsiders Washington, D.C., 100 timesmore likely to be targeted for future ter-rorist attacks than any other city.

“The citizens don’t know thatWashington D.C., brings in 90-tonchlorine tank cars that [by accident orterrorist attack] could release a poison-ous cloud over the city. Fifteen percentof the time – because of the prevailingwind direction – that cloud would blowright over the White House and theCapitol,” noted Millar in a 1989Washington City Paper article.

Over a decade later and after themost serious terrorist attack in ournation’s history Sept. 11, the threatremains and is arguably greater. TheChlorine Institute’s own calculationssay the worst case release scenariofrom the 90-ton rail tank car couldinvolve a cloud 41.5 miles long and 4 miles wide. Depending on the windand weather, the cloud could be lethal

as far as 8 to 10 miles away. Accordingto a former top official at the U.S.Department of Transportation, if oneammonia truck is punctured in a city itcould release a toxic gas cloud bigenough to cause a Bophal-scale disas-ter. An estimated 6,000 people diedand 100,000 were injured in a 1984,Bohpal, India gas leak accident.

Despite this clear risk, the publicis being systematically kept in the darkabout the catastrophic hazards of theseshipments, for fear, say local officials,of “scaring them to death.”

New York is one of the only topseven target cities that has had a long-standing Fire Prevention Code ban onthe truck transportation of three of themost dangerous classes of hazardousmaterials – bulk gases, compressedgases and toxic-by-inhalation gases.

Using New York’s ban as a startingpoint, Friends of the Earth has spear-headed a coalition that has successfullyconvinced District of Columbia’selected officials to introduce legisla-tion that will require shippers ofhazardous materials, by rail and truck,to obtain a permit and to follow routesand travel times specified by theDepartment of Transportation whenthey travel through the District.

Take ActionSend a letter to President Bush calling for more protections forAmerica’s high-threat cities, visitwww.foe.org/action. Or call Chris Weiss,director, D.C. Environmental Networkat 202-222-0746. ■

A loaded, labeled rail tank car of deadly chlorine gas travels slowly through perhaps themost attractive terrorist target city in the nation, within a couple of blocks of the U.S.Capitol building.

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H O M E L A N D S E C U R I T Y

Terrorist Threat: Dangerous Cargo on the Move

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By Colleen Freeman and Jon Sohn

Over the comingmonths, the WorldBank will begin cele-brating its 60thanniversary. As we

reflect on the Bank’s record, it is clearthat it has not fulfilled its commitmentto foster a world free of poverty.Friends of the Earth is determined thatthis anniversary should mark a turningpoint in the Bank’s track record.

Throughout the Bank’s history ithas financed development disasters,such as large dams that displace thou-sands of people, mining projects thatcause widespread environmental dev-astation and road projects that openrainforests to logging. In response togrowing public pressure for reform inthe 1990s, the Bank became more cau-tious in designing and approvingprojects, but now we are seeing grow-ing evidence that the Bank is reversingthis positive trend.

Reviews Not HeededIn response to public concern, theBank launched two independentreviews of its involvement in environ-mentally and socially sensitive areas.These are the World Commission onDams (WCD) and the just-completedExtractive Industries Review (EIR).

The WCD proposed a newapproach to financing decisions basedon the principles of equity, efficiency,participatory decision-making, sustain-ability and accountability.

The EIR recommends that theBank stop financing coal immediately,phase out financing oil extraction,scale up renewable resources andadopt stronger social and environmen-tal standards, including a human rightspolicy. However, the oil, mining andgas industries remain the majority ofthe Bank’s clients.

Unfortunately, the Bank has failedto implement the WCD approach withbinding standards, and now appearspoised to reject the EIR recommenda-tions, even though World Bank

President James Wolfensohn commis-sioned the EIR.

Wolfensohn faces a critical choice.He can ignore the EIR and perpetuateflawed investments that have failed toalleviate poverty or protect the envi-ronment, and instead enrichauthoritarian rulers and big oil compa-nies. Or, he can embrace the EIR as anopportunity for the Bank to reevaluateits activities and to determine how theBank’s resources can best contribute tosustainable development. The choicewill affect the course of the Bank’sinvestments over the next decade andthe lives of the millions of people.

Leading the Bank to itsMissionAs the Bank marks its 60th anniver-sary, Wolfensohn’s presidential termwill come to a close in 2005. His 9-year record does not reflect his nobleintentions of overhauling the WorldBank. Environmental groups hailed hispledge to address long-standing prob-lems with the Bank’s environmental

I N T E R N A T I O N A L F I N A N C E

World Bank: Reflection at 60

The World Bank-funded Pak Mun Dam in Thailand drastically reduced fish populations upstream of the dam site, destroying the livelihoodsof more than 20,000 people.

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Spring 2004 • Volume 34, Number 1 9

record and to improve environmentalperformance. He pledged to empowerdeveloping countries and streamlinethe Bank’s operations. Wolfensohn alsopromised to make poverty alleviationthe measure by which the Bank judgedits success. Unfortunately, we have notseen Wolfensohn’s intentions come tofruition.

The World Bank’s record over thepast 60 years does not demonstrate a

commitment to improving the lives ofthe poor, protecting natural resourcesor championing democracy. Instead,the Bank has allowed the private sectorto profit from public resources andinstitutionalized the domination of thewealthy over the impoverished. Friendsof the Earth and our allies in the envi-ronmental and social justice movementare determined to hold the World Bankaccountable and will keep pressing the

Bank to honor its poverty alleviationmission during and after its 60thanniversary.

For more information call Colleen Freeman,

202-222-0718 or cfreeman@foe.org. Sign up for our Global ActionNetwork e-mail newsletter atwww.foe.org to keep up with interna-tional issues. ■

I N T E R N A T I O N A L F I N A N C E

By Colleen Freeman

The Democratic Republicof the Congo’s abun-dance of oil, diamonds,gold, timber and otherminerals makes it one of

the most natural resource-rich nationson the planet. Yet economic prosperityhas eluded this battered, war-torncountry for most of its history.

The most recent war in the Congobegan when Rwanda and Ugandalaunched an attack to oust thenPresident Laurent Kabila from powerin 1998. When Angola, Namibia andZimbabwe intervened on behalf of theKabila government, the region quicklybecame embroiled in a six-nation warwhere an estimated 3 million peoplehave since died from fighting, diseaseor starvation.

A three-year investigation by aUnited Nations-appointed ExpertPanel revealed that a vicious cycle ofresource-driven conflict has taken holdof the Congo.

The panel discovered that sophisti-cated networks of high-level political,military and business persons wereintentionally fueling the war in order toretain their control over the country’snatural resources. Furthermore, byneglecting to ensure that their rawmaterials were not originating from theCongo by way of their suppliers, the

westerncompanieshad helped tobankroll thecriminal elitenetworks.

Today, most ofthe foreign armieshave withdrawn, a transitional govern-ment exists and democratic electionsare scheduled for 2005. The WorldBank has committed more than $1 billion to the transitional govern-ment, some of which is targeted torestructuring the country’s extractiveindustries sectors. The Bank is alsoconsidering investments in two miningprojects, even though its own internalevaluations department recommendedjust last year that it focus on helpingpoor countries manage the risks asso-ciated with oil, mining and gasprojects, rather than attracting newinvestment.

The Congo is absolutely poverty-stricken and the recent war left ahumanitarian crisis in its wake. The

use of rape as a weapon of war has leftthousands of Congolese women withdebilitating health and emotional prob-lems and the country’s general lack of

medical equipment and basic medi-cines is, in the words of the World

Bank, “appalling.” Millions ofCongolese people have been displaced,and there is virtually no public sectoror basic infrastructure. The ongoingfighting in the northeastern region ofthe country continues to threaten thefragile peace process, and there is nomilitary or border patrol to stop theillegal exploitation of natural resourcesand arms trade.

While Friends of the Earthbelieves that the World Bank has toplay an important role in rebuilding theCongo, it is most alarming to see therole that natural resources have playedin fueling the recent war and the rec-ommendations of its own internalevaluations department might beignored.

Friends of the Earth believes it isimperative that the World Bank helpthe Congolese government rebuild thecountry’s basic infrastructure, publicsector and government institutionsbefore new investments are consideredin the extractive industries. If the Bankignores these important lessons, itcould potentially undermine thechances for lasting peace in the Congo.

Country Spotlight: The Congo

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By Michelle Chan-Fishel

We make environ-mental decisionsevery day, fromthe foods we buyto how we get to

work and school. This spring, share-holders will have the chance to makekey environmental decisions by votingon shareholder resolutions that sendpowerful messages to CorporateAmerica. Shareholder resolutions,which are proposals that are introducedby and voted upon by a company’sshareholders, are an increasinglyimportant tool in challenging corporatethreats to the environment.

Over 60 green shareholder resolu-tions have been filed at some 50 companies in the United States.

Major categories of environmental res-olutions include: global warming,energy issues, genetically engineeredfood, environmentally sensitive areas,toxics and issuing sustainabilityreports.

Corporations will send sharehold-ers ballots in the mail asking them tovote for or against various resolutions.In many cases, if you do not vote, your

vote is automatically cast in favor ofcorporate management, which is usu-ally against environmental resolutions.

Even if we do not own stock out-right, many of us actually own sharesin companies through our mutual fundsor pension funds. In these cases, thefund managers make voting decisionson our behalf. But we can contact ourfund managers with the list of greenresolutions below and encourage themto support them. Also starting this year,mutual funds will be required to dis-close how they voted on shareholderresolutions, allowing us to check-up onhow our fund managers voted.

For more information contactMichele Chan-Fishel at

510-848-1155 or mchan@foe.org. ■

Call to All Shareholders: Vote!C O R P O R A T E A C C O U N T A B I L I T Y

Report on Climate Change RiskAmerican International GroupAnadarko PetroleumApacheExxonMobil (release climate research)FordGeneral Motors

Report/Reduce Greenhouse Gas(GHG) EmissionsExxonMobilFordGeneral MotorsMarathon OilReliant ResourcesSouthern (report GHG, other emission risks)TXUUnocalValeroXcel Energy

Report on GHG Emissions & Forests Stewardship CouncilLouisiana-PacificWeyerhaeuser

Nuclear Energy IssuesAmeren (report on nuclear waste storage)GE (report on nuclear waste storage)PG&G (take steps against nuclear accidentrisks)

Pinnacle West Capital (report on nuclearwaste storage)

Promoting RenewablesChevronTexacoExxonMobil

Report on Genetically Engineered FoodInternational MultifoodsKelloggSafeway Wal-Mart Yum Brands

Environmentally Sensitive AreasConocoPhillips (report on plans to drill inArctic)Pulte Homes (adopt smart growth policy)

ToxicsAvon (report on phasing out parabens)Avon (report on phasing out phthalates)ChevronTexaco (clean up toxic sites)Dow (report on toxics)Dow (report on environmental impact &plans, Bhopal)GE (report on costs of PCB cleanup delay)Tyco (review and reduce toxics)

Report on SustainabilityAgcoAlbertson’sCooper Cameron

Dean FoodsEOG ResourcesKerr-McGeeKinder MorganKrogerLowe’sMDC HoldingsNVRPioneer Natural ResourcesRyland GroupSafewayTargetTerex

Issue Sustainability ReportCooper IndustriesGeneral ElectricWal-MartYum Brands

OtherIntel (report on water use)Pepsi (increase recycled content)Plum Creek Timber (adopt CERES environ-mental principles)Weyerhaeuser (adopt old-growth forest pro-tection policy)ExxonMobil (link executive pay to corporateenvironmental impact)ExxonMobil (separate the postitions of CEOand board chair to promote accountability onclimate change)

Green Shareholder Resolutions

Note: Since printing, some resolutions may have been withdrawn.

Spring 2004 • Volume 34, Number 1 11

From Delivering Pizzas toProtecting Parks and WildlifeBy Diane Minor

What happenswhen a 12-year-old boy fromOhio spends hisfamily vacation

on a tour of America’s incrediblenational parks?

For one impressionable youngman it’s meant that 30 years later heis running a foundation committed tosupporting the work of groups thatprotect those parks and the wildlife inand around them.

But first, Rick Flory parlayed apart-time job delivering pizzas duringcollege into the second largestDomino’s Pizza franchise in thecountry.

That personal fortune secure,Rick, his fiancé Lee Robert, and hisson Ryan, crafted his “second life’scareer:” Earth Friends WildlifeFoundation, based in Jackson, Wyo.

“We’re not just check writers,”says Rick, “It’s important to us to beinvolved, to see that projects arebased on good science, and to begiven regular progress reports. Wefocus on building partnerships as allour grants are challenge grants. Weencourage a networking and busi-ness-like approach on all our projectsand request an educational compo-nent to help perpetuate importantworks and expand public support.”

Rick, who solo pilots a CessnaCitation CJ1, regularly jets off toWashington and all over the West tomeet with leaders of environmentalgroups. He has also ferried Wyomingenvironmentalists from Jackson to

Sheridan for a meeting with high-level fish and game officials aboutprotecting grey wolves.

Rick recently attended a publicforum Friends of Earth hosted inWyoming about coal-bed methanedevelopment there, an issue on whichhe has considerable knowledge.

“It’s like a wasteland already,” hesays of Wyoming’s Powder RiverBasin, “and that’s way less than theimpact they’re going to have.”

To protect bald eagles and biggame animals threatened byexpanded development there and tosave wild salmon in the PacificNorthwest, this year Rick’s founda-tion significantly increased its giving

in support of Friends of the Earth’swork.

He also personally supports ourwork to stand up to the currentadministration’s assaults on environ-mental protections.

“I’m unhappy that this adminis-tration has declared outright war onour public lands and on wildernessand wildlife. It’s just unconscionableto sacrifice our future like this. Thisis not what the American publicwants.”

To find out more about EarthFriends Wildlife Foundationvisit www.earthfriends.com. ■

I N A P P R E C I A T I O N

We would like to thank Rick Flory, pictured with his fiancé Lee Robert, for supporting ourwork to stand up to the Bush administration’s anti-environmental actions through his EarthFriends Wildlife Foundation.

12

T R A N S P O R T A T I O N

By Greg Smith

At the behest of the trans-portation lobby,Congress and theadministration are work-ing to weaken laws that

help communities fight environmen-tally destructive highway projects. InSeptember 2002, President Bushenacted a little-known executive orderthat invites governors and other offi-cials to nominate their favorite highwayprojects and bypass normal environ-mental review. Now, Congress isattempting to pass a transportation billthat will badly undermine the public’sright to know and participate in deci-sions about proposed highway projects.

President Bush’s Executive Order13274 is based on the myth that envi-ronmental review slows down theconstruction of highways. This mythpersists despite Federal HighwayAdministration and GovernmentAccounting Office studies that foundenvironmental review is not a primarycause of project-delay, and that when areview takes more than five years, envi-ronmental agencies are rarely the causefor delay.

Similar to other Bush administra-tion environmental rollbacks,

Executive Order 13274 was developedin secret, but with the promise of pub-lic participation. Instead of developingand publishing clear guidelines, theadministration has hand-picked 11 projects to fall under Bush’s execu-tive order, approved four of those in2003, accepted nominations foranother 66 and invited yet anotherround of nominations.

Cumulatively, the 11 projects nowbeing fast-tracked would cost tens ofbillions of dollars, lay down hundredsof miles of new asphalt and causetremendous damage to communities,the environment and public health. Ofthe 11 nominated roads, Friends of theEarth has been fighting two projects,the Circumferential Highway inVermont and the Inter CountyConnector (ICC) in Maryland.

Friends of the Earth targeted theICC in our jointly released GreenScissors report for Maryland, Greeningthe Budget, which found the full pricetag for the ICC approaches $3 billion.Spending billions of dollars on an 18-mile stretch of highway that wouldclearcut forests, damage parks andcommunities and bulldoze stream val-leys and wetlands – while having no

real impact on commuting times –makes no fiscal sense.

The executive order has largelyescaped the public eye and Congress ishoping the transportation bill will dothe same. As this article goes to press,Congress is debating the $250 billionto $375 billion surface transportationbill. Generically known as TEA-3 (forthe Transportation Equity Act-3), thisgargantuan bill appropriates 80 percentof total funding to highway programs.The remaining 20 percent will fundtransit and other non-highway pro-grams.

The bill aims to severely weakenthe National Environmental Policy Act,the Clean Air Act and protections forparks and wildlife.

Friends of the Earth is tracking theU.S. Department of Transportation’sactions under the executive order andis fighting the environmental attacks inthe transportation bill.

Take ActionTell your representative in Congress tostrengthen, not weaken environmentalprotections in the transportation bill byvisiting www.foe.org/action or calling thecapitol switchboard, 202-224-3121. ■

Highways continue to infringe on our open space and communities. If President Bush’s transportation bill passes in Congress, it will takeaway our right to know about highway projects and our right to participate in highway-decisions effecting our communities.

Building Highways Over Communities

Spring 2004 • Volume 34, Number 1 13

E N E R G Y

Action on Climate ChangeBy Jon Sohn

Extreme weather eventscost Americans nearly $20 billion in 2002.United Nations data indi-cates that losses owing to

natural disasters linked to climatechange have reached $1 trillion over thepast 15 years and annual losses in thenext 10 years could reach $150 billion.

Friends of the Earth anticipatesthese costs will increase if the U.S.government and corporations do nottake responsibility for their actions thatcause climate change.

The Pentagon Report:Climate Change A Serious MatterTo date, the Bush administration hasbasically ignored the threat of climatechange. The Bush administration’senergy bill is full of subsidies to fundthe coal, oil and gas industries – themajor contributors to climate change.He also has not signed the KyotoProtocol, a binding agreement amongindustrial countries to reduces theiremissions of six greenhouse gases.

A recent Pentagon report arguesthat global warming is a greater threatto world security than terrorism andpredicts a warming future where “dis-ruption and conflict will be endemicfeatures of life.” Based on worst-casescenario, the report predicts climatechange unleashing a series of intercon-nected catastrophes includingmega-droughts, mass starvation andnuclear war, as countries battle overscarce food and water, while Europewill encounter another ice age andbecome uninhabitable. It’s time forBush to start paying attention to cli-mate change.

ExxonMobil’s ClimateFootprintFor the first time, the historic contribu-tion of one company to global climatechange has been calculated. Theassessment findings of ExxonMobil’shistorical emissions has significantimplications for the company’s legalexposure and for its shareholders.

Friends of the Earth commissionedtwo studies that showed ExxonMobil,including its predecessors, caused 4.7to 5.3 percent of the world’s manmadecarbon dioxide emissions between1882 and 2002. Carbon dioxide emis-sions are the principal cause of globalwarming. Despite U.N. scientists find-ing, in 1996, that man-made pollutionis having a discernible influence on the global climate, seven out of the 10 worst years for ExxonMobil’s emis-sions occured after 1996.

Roughly 70 percent of the com-pany’s emissions have been since1967, when scientists produced whathas been described as “the first reason-ably solid evidence of globalwarming.” ExxonMobil has repeatedly

attempted to undermine the scientificconsensus on climate change andactively resisted attempts to limit car-bon dioxide emissions through law.

Friends of the Earth vs.The Bush AdministrationOur groundbreaking climate changelawsuit against the Bush administrationis now set to be heard in a federalcourt in San Francisco. Our suitalleges that the Overseas PrivateInvestment Corporation and the U.S.Export-Import Bank are charged withfunding $32 billion worth of fossil fuelprojects without doing environmentalassessments or considering alternativesas required by the NationalEnvironmental Policy Act. The lawsuitis an attempt to compel the U.S. gov-ernment to do what many state andlocal governments are already doing –taking immediate and effective actionto prevent global warming.

Visit www.foe.org to see thereport Exxon’s ClimateFootprint. ■

A new Department of Defense report warns the Pentagon that climate change is a nationalsecurity threat, writing, “With inadequate preparation, the result could be a significant dropin the human carrying capacity of the Earth’s environment.”

14

S T A Y I N F O R M E D !

Estate planning experts suggest reviewing your will about every three years, when you retire or celebratea new birth. As a service to our members, Friends of the Earth is offering a free and concise booklet on tips to consider inpreparing or updating your will.

As you think about your will, please consider remembering Friends of the Earth in your plans. Help to leave this worldan even better place for our children and our children’s children.

❑ Please send me a free copy of How to Make a Will That Works.

❑ I’d like to learn more about how to include Friends of the Earth in my estate plans. Please send me the appropriatewording to bring to my attorney.

❑ I have already included Friends of the Earth in my estate plans.

NAME (PLEASE PRINT)

ADDRESS

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Or call Rosemary Greenaway toll-free at 877-843-8687x 722 or e-mail rgreenaway@foe.org.

We Don’t Inherit the Earth from Our Parents……We Borrow It from Our Children.

Do you know about ouronline action center?It is a great place tosign up for e-mailupdates on issues that

you’re interested in and send letters toimportant decision makers. And it’sjust a click away at www.foe.org/action.

In response to an environmen-tally disasterous energy bill pendingin the Senate this past November,activists sent thousands of lettersthrough our action center, which helpedblock the bill from coming to a vote inthe Senate. Billions of our taxpayerdollars were almost given to big pollut-ing energy companies.

It is important to stay informedabout how corporations and our federalgovernment are deciding the future ofour communities, environment andpublic health. We have several different

e-mail newsletters you can sign upfor, such as our GeneticallyEngineered Food Action Alert listand our Global Action Network, alist specifically designed for peopleinterested in international issues.There’s also our e-Newsletter, whichwill keep you updated on currentenvironmental issues and actionsyou can take to protect the environ-ment.

So, please take a moment andvisit Friends of the Earth’s action centerwww.foe.org/action. We will continue toadd features to the action center, soplease use the enclosed envelope togive us suggestions. ■

Be Part of the Solution!

F R I E N D S O F T H E E A R T H M E R C H A N D I S E

New Look!Reuse Envelope Labels $5 members, $7 non-membersSave trees! Reuse your envelopeswith Friends of the Earth’s labels. Juststick the 3” x 5” label over the oldaddress and you can reuse envelopes,reducing the amount of waste that youproduce. 50 labels per pad.

Anti-SUV Bumper Stickers

$2 each, $5 for threeShow the world how you feel abouthigh-polluting sport utility vehicles.The slogans came from a contest heldat www.suv.org.

Large Tote Bags$10 members, $15 non-membersFriends of the Earth’sroomy, organic cottoncanvas bag features alarge Friends of theEarth logo. It is a perfectalternative to paper orplastic.

Checks, Labels and HempCheckbook Covers

200 Single Checks $14.95240 Labels $9.95Hemp Cover $14.95Let people know you’re a friend of the earth with each check you write.These products are available onlythrough our earth-friendly vendor,Message! Products. Order athttp://www.foe.org and click on the store link or call Message!Products toll-free 800-243-2565.Friends of the Earth receives 10 per-cent of sales from Message! Products.

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Have you ever won-dered how you can dosmall things thatmake a big differencefor Friends of the

Earth? Here are some ways you canhelp:

1. Try a Newman’s OwnProduct

Actor Paul Newman, as sole owner ofNewman’s Own®, donates all hisprofits and royalties after taxes tocharity. The next time you are in thesupermarket looking for a saladdressing for dinner or some popcornfor a movie-night at home, try some-thing from Newman’s Own. It’s allgood!

2. Shop for ChangeWorkingforchange.com features stores thatwill donate up to 5 percent of eachpurchase made through them to one ofthe charities listed on Working Assets.If you are a member of WorkingAssets, please don’t forget to vote forFriends of the Earth when your ballotarrives at the end of the year. You canalso choose to ‘round-up’ each bill thatyou receive throughout the year. If youare not a member, please considerjoining at www.workingassets.com.

3. Vote for the Environment!This year is an election year and every-one should vote their environmentalvalues at every level – local, state andnational. The enforcement and imple-mentation of environmental laws and

programs throughout our countrydepends on the caliber of people hold-ing public office.

4. Looking for Ways toGreen Your Wedding?Marriedforgood.com is a source of manygreat suggestions that will help makeyour wedding more environmentallyfriendly, such as what to do with leftover food, flowers and bridal dresses.Marriedforgood.com also has a list ofselected charities that you can considerproviding a donation to in your nameor those of your guests. Friends of theEarth is proud to be featured as thecharity of the month atMarriedforgood.com. ■

How to Make a Difference

In honor of Earth Day on April 22, why not give a membership in Friends of theEarth or have a free issue of our newsmagazine sent to a friend or family member?I want to help get the word out. Please send a complimentary copy of the Friends of the Earth Newsmagazine to:

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