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
Police in Tahrir Square. Image: Getty.
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The murder of my friend Giulio Regeni is an attack on academic freedom

We are grieving – but above all, we are furious about the manner of his death.

The body of Giulio Regeni was discovered in a ditch in Cairo on February 2, showing evidence of torture, and a slow and horrific death. Giulio was studying for a PhD at the University of Cambridge, and was carrying out research on the formation of independent trade unions in post-Mubarak Egypt. There is little doubt that his work would have been extremely important in his field, and he had a career ahead of him as an important scholar of the region.

Giulio, originally from Fiumicello in north-east Italy, had a strong international background and outlook. As a teenager, he won a scholarship that allowed him to spend two formative years studying at the United World College in New Mexico. He was especially passionate about Egypt. Before beginning his doctoral research, he spent time in Cairo working for the United Nations Industrial Development Organisation (UNIDO). At the age of 28, he stood out with his big hopes and dreams, and he was committed to pursuing a career that would allow him to make an impact on the world, which is a poorer place for his passing.

Those of us who worked and spent time with him are grieving – but above all, we are furious about the manner of his death. While murder and torture are inherently of concern, Giulio’s case also has much broader implications for higher education in the UK and beyond.

Giuli Regeni. Image: provided by the author.

British universities have long fostered an outward-looking and international perspective. This has been evident in the consistent strength of area studies since the middle of the 20th century. The fact that academics from British universities have produced cutting-edge research on so many areas of the world is an important factor in the impact and esteem that the higher education system there enjoys.

In order to carry out this research, generations of scholars have carried out fieldwork in other countries, often with authoritarian political systems or social unrest that made them dangerous places in which to study. I carried out such research in Peru in the 1990s, working there while the country was ruled by the authoritarian government of Alberto Fujimori.

Alongside this research tradition, universities are becoming increasingly international in their outlook and make up. Large numbers of international students attend the classes, and their presence is crucial for making campuses more vibrant and diverse.

Giulio’s murder is a clear and direct challenge to this culture, and it demands a response. If our scholars – especially our social scientists – are to continue producing research with an international perspective, they will need to carry out international fieldwork. By its nature, this will sometimes involve work on challenging issues in volatile and unstable countries.

Universities clearly have a duty of care to their students and staff. This is generally exercised through ethics committees, whose work means that much greater care is taken than in the past to ensure that risks are managed appropriately. However, there is the danger that overly zealous risk management could affect researchers’ ability to carry out their work, making some important and high-impact research simply impossible.

Time for action

We cannot protect against all risks, but no scholar should face the risk of extrajudicial violence from the authorities. If universities are to remain internationally focused and outward-looking, we must exercise our duty of care towards our students and colleagues when they are working in other countries.

But there are limits to what academic institutions can do on their own. It is vital that governments raise cases such as Giulio’s, and push strongly for full investigations and for those responsible to be held to account.

The Italian and Egyptian authorities have announced a joint investigation into what happened to Giulio, but the British government also has a responsibility to make representations to this effect. That would send the message that any abuse by authorities of students and researchers from British universities will not be tolerated.

A petition will be circulated to this effect, and Giulio’s friends and colleagues will be campaigning on the issue in the days and weeks ahead.

Giulio Regeni’s murder is a direct challenge to the academic freedom that is a pillar of our higher education system. He is only one of many scholars who have been arbitrarily detained, and often abused, in Egypt. As a scholarly community and as a society, we have a duty to strike to protect them and their colleagues who study in dangerous places the world over.

 

Neil Pyper is an Associate Head of School at Coventry University

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