Enterprise Issues
With Siaka Momoh
It is a battle line that has been drawn for a long time. Poor countries are perpetually tied to the apron string of rich countries, otherwise known as metropolitan countries. The World Trade Organisation (WTO) is the platform where issues concerning trade relations are held. This has been done on several occasions, a number of times that you can lose count of. Talks, talks, talk. At the end of the day, the rich gains the upper hand.
The last talk held in Hong Kong gave some hope to the poor. A date in the not too distant future has been promised the poor. A date when subsidies will give way. Is this feasible?
^Take a close look at discussion papers at various conferences in the past as well as the position papers of independent groups like Oxfam and others. It is interesting following the activities of groups such as Oxfam, an independent humanitarian and development agency whose budget is financed by private donations and the generous grants of charitable foundations, one that is founded and run by elements from rich countries. Their sincerity of purpose gives one hope.
Read the following statement from Raymond C. Offenheiser, President of Oxfam America, on Secretary Rice’s announcement of USAID restructuring.
“Secretary Rice announced a momentous overhaul of the State Department and the US Agency for International Development (USAID) that will certainly change the way the US helps the poor across the world. The steps she has proposed as part of her “Transformational Diplomacy” initiative—posting more diplomats in poor countries and crisis zones, focus on teaching more languages used in the developing world, and ensuring that the State Department can evolve to face a post-Cold War world are to be commended.
As an international organization committed to long term solutions to poverty and hunger, we want to see US taxpayer money used as effectively as possible to make the biggest difference for the billion people across the world that struggle to survive on just a dollar a day. As an independent organization that does not pursue or accept USAID funding but works alongside USAID initiatives, we recognize the magnitude and importance of this restructuring.
Indeed, President Bush has made great strides to increase and restructure overseas assistance. But lives are at stake so we must proceed cautiously and wisely. The following four areas of focus must drive the reform of US foreign aid, ensuring that the long-term needs of the poor—not politics— come first.
1. The Needs of the Poor, Not Politics, Should Drive Reform of US Foreign Aid
Since the attacks of September 11th there has been a drastic shift in US foreign assistance that has blurred the lines traditionally separating development and humanitarian aid from political and military action. It is essential that any plan to restructure the State Department and USAID does not further erode the independence of aid groups to fight poverty and respond to humanitarian emergencies based on the need on-the-ground, not based on the agenda of the White House or the Pentagon.
The safety of NGO staff and the people we are trying to help is compromised by any perception that development and humanitarian assistance is a political and military tool. Secretary Rice and the incoming Administrator of USAID must publicly affirm the independent nature of development and humanitarian assistance, and work to restructure USAID in a way that reflects the core values of independence and impartiality that should guide development and humanitarian programs.
2. Building Institutions should be Cornerstone of US Aid Strategy
For far too long, food aid and other forms of assistance that breed dependence have been large components of US foreign aid. Secretary Rice should outline a far-reaching yet detailed strategy for how US money will be used to strengthen economic systems, government agencies, civil society groups, and basic infrastructure in poor countries. Increasing agricultural production or supporting poor communities through micro-credit programs is only one part of the solution.
Strong local institutions are required to ensure development at the village level will have results at the national one. Better roads to bring goods to market, reliable banks where poor people can save their money and receive credit, and government institutions where the rights of the most marginalized are respected and defended are all examples of investments that encourage sustainability.
This piece, sourced from Archives Siaka-Momoh, was first published in BusinessDay in July 2006. To be continued next week Thursday.
