The real "poverty barons" are multinational companies

Foreign aid should be investigated, but in the right way


On Monday, the new International Development Secretary Justine Greening launched an investigation into the millions of pounds of UK aid money diverted into the pockets of private sector consultants such as the staunchly pro-market Adam Smith International (ASI), following an investigation by the Sunday Telegraph.

This is certainly welcome news. The World Development Movement has for years argued that money made by highly paid consultants like ASI, forcing privatisation, is a dubious use of public funds at best. As early as 2001, ASI was paid to facilitate a water privatisation project in Tanzania, including earning a handsome £250,000 to promote a pop song.

But the worrying thing is that the use of the aid budget in this way is only the tip of the iceberg.  Increasing consultancy spend is part and parcel of a wider undying faith that DfID has in the private sector to deliver poverty reduction.

In one stark example, UK aid money is currently paying for consultants to advise the Bangladeshi government on the establishment of new special economic zones aimed at attracting private-sector investment. Existing zones give multinational companies tax holidays and subsidised land while placing severe restrictions on trade union activity to an extent where the average wage inside these Bangladeshi "export processing zones" is around £30 a month. Here, the scandal goes well beyond the approximately £14m that we are paying the consultants. The heart of the issue is the fact that we are using aid to support a project that will do everything to benefit multinationals like Adidas, which made 671 million Euros in profit last year, and next to nothing for the supposed beneficiaries.

But the government’s pursuit of development policy that focuses on the private sector doesn’t stop at promoting pro-market solutions through consultants. Increasingly, we are seeing multinational corporations replace aid agencies, governments and NGOs as the implementing partners in aid projects.

For example, DfID’s Girl Hub project aimed at getting policymakers to prioritise the needs of girls is being implemented by the Nike Foundation. At the hunger summit hosted by David Cameron during the Olympics, it was Unilever and Glaxo Smith Kline, not NGOs or governments who were named as the major partners.

The problem with all this is that the core assumption – that private sector solutions will be somehow better and more efficient than public sector oriented ones – is based on ideology, not evidence. Nike’s Girl Hub project was slammed as having “serious deficiencies in governance” by the independent aid watchdog ICIA.

There have been myriad inquiries into aid policy over the past decade, but none have broached the key question that needs to be answered: do pro-market, private sector models of development work better for the poorest people than approaches that focus on using and strengthening the capacity of the public sector? The World Development Movement’s 2007 research on water provision showed precisely the opposite.

Justine Greening should look towards supporting an independent Parliamentary inquiry into this broader and more vital question, and put ideology aside and in the interests of genuine poverty reduction. Until this happens, there will remain doubts about whether the government is serious about an aid programme focused on the poor rather than promoting market ideology alone.

Deborah Doane is director of the World Development Movement

Food aid is collected in a Kenyan refugee camp. Credit: Getty Images
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Ankara bombs: Turkey is being torn apart by bad leaders and bad neighbours

This is the worst terror attack in Turkey’s history. In just a few months, hundreds of civilians, Turkish security personnel and PKK members have been killed.

It had already been a deadly summer of political instability in Turkey. And now this. Another massacre – this time at the hand of twin bomb attacks on a peace rally in Ankara, which have killed at least 97 people.

It is the worst terror attack in Turkey’s history. In just a few months, hundreds of civilians, Turkish security personnel and PKK members have been killed. Barely a single day passes in Turkey without some incident of lethal political violence.

Freedom from fear is the very basic principle of human security, which should be protected by any state that wants a true sense of legitimacy over its population and territory. In Turkey, that freedom is under enormous pressure from all sorts of internal and external forces.

Stirred up

There are plenty of competing explanations for the political violence engulfing the country, but none can seriously overlook the impact of Turkey’s bad political leadership.

The terrible, violent summer reflects nothing so much as an elite’s greed for power and willingness to treat civilians as dispensable. This has become particularly apparent since Turkey’s inconclusive June 7 election, and the way various political parties and leaders did all they could to prevent the formation of a viable coalition government.

Ultimately, the power game is simple enough. At the elections hastily called for November, President Recep Tayyip Erdogan’s AKP party needs to garner only a few per cent more than it did in June to win the majority it needs for Erdogan to bolster his powers and make himself the country’s executive president.

To that end, pro-government media has been in overdrive throughout the summer, deliberately fuelling an environment of division, paranoia and mistrust in hopes of winning votes out of pure fear.

All the while, southeast Turkey has endured dreadful violence. Some towns – Cizre, for instance, which was under seige for days – have suddenly found themselves on the front line of renewed fighting between the security forces and the PKK.

The demise of the peace process is not just a failure of diplomacy – it signals that the armed conflict is still hugely politically and financially lucrative to Turkey’s political and military leaders. And the violence they’re profiting from is rapidly corroding social life and human security across the country.

The war next door

But the political instability caused by Turkey’s leaders has been greatly exacerbated by its neighbours, especially the continuing civil war in Syria and its deadly ramifications – an influx of jihadist fighters, a massive refugee crisis, and spiralling military interventions.

Since the end of the Cold War, global security has never been so seriously threatened as it is by today’s situation in Syria, which is now host to a head-to-head clash between the interests of Russia, the Assad regime and Iran on the one hand and the US, the EU, their Arab allies, and NATO on the other.

All sides claim to be fighting against the Islamic State and other Islamist extremists, but it’s clear that what’s really at stake is a lot more than just the fate of the jihadists or the political future of Syria. Already there’s an ominous spat underway over Russian planes' incursion into Turkish airspace; NATO has already raised the prospect of sending troops to Turkey as a defensive gesture.

And while it was always inevitable that the Syrian disaster would affect its northern neighbour to some degree, Turkey’s continuing internal political instability is proving something of an Achilles heel. By deliberately forcing their country into a period of chaotic and violent turmoil, Turkey’s leaders have made it more susceptible than ever to the Syrian conflict and the mighty geopolitical currents swirling around it.

And yet they press on with their cynical political ploys – seemingly unmoved by the cost to their people, and unaware that they could just be becoming pawns in a much bigger game.

The Conversation

Alpaslan Ozerdem is a Chair in Peace-Building and Co-Director of the Centre for Trust, Peace and Social Relations at Coventry University.

This article was originally published on The Conversation. Read the original article.