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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Millennial Man: How Emmanuel Macron is charming France's globalised youth

At the French presidential candidate's London rally, supporters cheered for a reformist. 

If it weren’t for the flags – the blue, white and red of France, but also the European Union’s starred circle – the audience’s colourful signs and loud cheers could have been confused with those of a rock star’s concert. There even were VIP bracelets and queues outside Westminster Central Hall, of fans who waited hours but didn’t make it in. This wasn't a Beyonce concert, but a rally for France’s shiny political maverick, the centrist presidential candidate Emmanuel Macron. He arrived on stage under a thunder of applause, which lasted the full minute he took to salute the first rank.

Since he resigned from his position as François Hollande’s economy minister last August, the 39-year-old relative political newbie – he used to be a banker and only joined the French government in 2014 – has created his own movement, En Marche, and has been sailing in the polls. In this he has been helped by the fall from grace of Conservative candidate François Fillon. Macron, who can count on the support of several Socialists, the centrist François Bayrou and the unofficial backing of the Elysee palace, is seen as the favourite to face hard-right Marine Le Pen in the election’s run-off in May.

A screen displayed photos of supporters from around the world (Singapore, Morocco, United States, “We’re everywhere”) as well as the hashtags and Snapchat account for the event. Rihanna’s “Diamonds” played as a team of young “helpers”, en anglais dans le texte, were guiding the 3,000 French expatriates to their seats. “We’re about 90 helpers tonight,” said Pierre-Elie De Rohan, 23. A History student at University College London, he joined the youth branch of En Marche via a school group.

The movement has been very active among students: “We’re in all London universities, King’s, Imperial, UCL”, he said. “It’s exciting”, echoed fellow helped Arcady Dmitrieff, 18, from UCL too. “We feel like we’re taking part in something bigger than us.”

Hopeful millennials are flowing to En Marche en masse. Macron is young, attractive, and though, like most French politicians, he is a graduate of the elite École Nationale d'Administration school, voters still see in him a breath of fresh air. “He’s neither left-wing nor right-wing," praised helper 18-year-old Victoria Tran. Her friend Adele Francey, 18, agreed. “He transcends the political divides that have confined us for the past thirty years," she said. “And he looks sincere," added Lena Katz, 18. “He really believes he can make a change.” The Macron brand, a mix of smart marketing, cult figure (the first letters of En Marche are Macron’s initials) and genuine enthusiasm previously unseen on the French campaign trail, has given him momentum in a political system highly based on the leader’s personality.

For Katz, Tran and many of their friends, France’s 2017 presidential race is their first election. “I want to be invested and to vote for someone I like," Tran said. “More than the others, Macron represents our generation.” Their close elders are hoping for a political renaissance, too – perhaps the one that was supposed to come with François Hollande in 2012. “I really believe he can make it," said Aurelie Diedhou, 29, a wholesale manager who has lived in London for two years. “On many topics, he’s more advanced than his rivals, a bit like Barack Obama in 2008. In France, when a politician has the pretention not to be corrupt, or to have held a job before entering politics, they’re accused of marketing themselves. But it’s just true.”

Macron occupied the stage for a good hour and a half – during which his supporters never failed to cheer, even for boring declarations such as “I want more management autonomy”. He passionately defended the European Union, and pleaded for its reform: “I am European, and I want to change Europe with you.”

Such words were welcomed by French expatriates, many of whom have feared that their life in the UK may be turned upside down by the consequences of the Brexit vote. “Britain has made a choice, which I think is a bad choice, because the middle classes have lacked perspectives, and have had doubts," Macron said. He promised to stand for the rights of the French people who “have made their life choice to settle in Britain”.

As far as Macron's UK co-ordinator, Ygal El-Harra, 40, was concerned, that the candidate would make a trip across the Channel was self evident: “We’ve got people in Bristol, Cambridge, Edinburgh, in Cornwall. And they’re not just bankers and traders: some work in delivery, restaurants, many are students... They perfectly represent French society, and we want to keep in touch with them.”

In 2012, London’s French community opted for Nicolas Sarkozy over Hollande, but the vote was very close (48 per cent to 52 per cent). Just as within France, where he appeals to both left and right-wingers, Macron’s internationally-minded liberalism, coupled with his fluent, fairly well-accented English, could win big among the expat. And they matter - there are about 100,000 votes to grab. “For us who are in London, it’s important to have an open-minded, international candidate," the teenager Tran said.

Rosa Mancer, a 45-year-old strategist who has lived in London for 20 years, agreed. “I loved what he said about Europe. We must reform it from the inside," she said. But she admitted her support for Macron was “a choice by elimination”, due to the threat of the far-right Front National and the corruption case surrounding Fillon. “He’s got no scandal behind him," she said. Unlike their younger peers, voters with more experience in French politics tended to choose the dynamic Macron because he was the least compromised of the lot. “It’s certainly not Marine Le Pen, nor Benoît Hamon, the sectarist Fillon or the Stalinist Jean-Luc Mélenchon, who will rebuild our fossilised France”, said Roland Stern, a Frenchman in his sixties. “In 1974, Giscard D’Estaing didn’t have a party, either. But once he had won, the others followed him.”

British politicians had come to see the French phenomenon, too. Labour’s Denis MacShane and former Deputy Prime Minister Nick Clegg sat among the VIPs. For the latter, the enthusiasm around a promising and brilliant politician rang a bell. Looking back on the 2010 general election, the former Liberal Democrat leader reflected: “Although my platform was very different at the time, the basis was that the status quo was letting people down and that we needed something different.” Clegg’s advice to Macron? “Make sure you seek to set and manage people’s expectations.”

As Clegg knows too well, there is a danger in bringing everyone together, and that is keeping everyone together without disappointing them all. If his name comes first on the evening of May 7, Macron’s real challenge will begin: forming a government with his supports for a broad political spectrum, and dropping vague pledges and marketing slogans to map out a clear way ahead.

In Westminster, hundreds of supporters were literally behind him, seated in tiers on stage. A massive screen showed a live close-up of Macron's youthful face. Something in his picture-perfect smile seemed to wonder what would happen if the crowd stopped cheering.