Economic and development analysis: Perspectives on economics, society, development, freedom & social justice. Leading issues in Oromo, Oromia, Africa & world affairs. Oromo News. African News. world News. Views. Formerly Oromia Quarterly
Multidimensional Poverty Index: Ethiopia has the second highest percentage of people who are MPI poor in the world: of Ten Poorest Countries in The World (All in #Africa) – MPI 2015 Ranking
‘Human development is a process of enlarging people’s choices—as they acquire more capabilities and enjoy more opportunities to use those capabilities. But human development is also the objective, so it is both a process and an outcome. Human development implies that people must influence the process that shapes their lives. In all this, economic growth is an important means to human development, but not the goal. Human development is development of the people through building human capabilities, for the people by improving their lives and by the people through active participation in the processes that shape their lives. It is broader than other approaches, such as the human resource approach, the basic needs approach and the human welfare approach.’ -UNDP 2015 Report
Ethiopia’s HDI value for 2014 is 0.442— which put the country in the low human development category— positioning it at 174 out of 188 countries and territories.
In Ethiopia 88.2 percent of the population (78,887 thousand people) are multidimensionally poor while an additional 6.7 percent live near multidimensional poverty (6,016 thousand people). The breadth of deprivation (intensity) in Ethiopia, which is the average of deprivation scores experienced by people in multidimensional poverty, is 60.9 percent. The MPI, which is the share of the population that is multidimensionally poor, adjusted by the intensity of the deprivations, is 0.537. Rwanda and Uganda have MPIs of 0.352 and 0.359 respectively.Ethiopia, UNDP country notes
(Sunday Adelaja’s Blog) — When Poverty and non-existent double digit growth met face-to-Face at a dumpster site called KORA in Ethiopia. As we speak, thousands of people in Addis Ababa survive from the leftover “food” dumped in such dumpsters. People, in fact, used to call them “Dumpster Dieters”. They are either the byproducts or victims of the cooked economic figures. You be the judge!
Yet the new measurement known as the Multidimensional Poverty Index, or MPI, that will replace the Human Poverty index in the United Nations’ annual Human Development Report says that Ethiopia has the second highest percentage of people who are MPI poor in the world, with only the west African nation of Niger fairing worse. You probably heard that Ethiopia has been a fast growing economy in the content recording very high growth rate not just in Africa but the world as well.
This comes as more international analysts have also began to question the accuracy of the Meles government’s double digit economic growth claims and similar disputed government statistics referred by institutions like the IMF. The list starts with the poorest.
Niger
Ethiopia
Mali
Burkina Faso
Burundi
Somalia
Central African Republic
Liberia
Guinea
Sierra Leone
What is the MPI?
People living in poverty are affected by more than just income. The Multidimensional Poverty Index (MPI) complements a traditional focus on income to reflect the deprivations that a poor person faces all at once with respect to education, health and living standard. It assesses poverty at the individual level, with poor persons being those who are multiply deprived, and the extent of their poverty being measured by therange of their deprivations.
Why is the MPI useful?
According to the UNDP report, the MPI is a high resolution lens on poverty – it shows the nature of poverty better than income alone. Knowing not just who is poor but how they are poor is essential for effective humandevelopment programs and policies. This straightforward yet rigorous index allows governments and other policymakers to understand the various sources of poverty for a region, population group, or nation and target their humandevelopment plans accordingly. The index can also be used to show shifts in the composition of poverty over time so that progress, or the lack of it, can be monitored.
The MPI goes beyond previous international measures of poverty to:
Show all the deprivations that impact someone’s life at the same time – so it can inform a holistic response.
Identify the poorest people. Such information is vital to target people living in poverty so they benefit from key interventions.
Show which deprivations are most common in different regions and among different groups, so that resources can be allocated and policies designed to address their particular needs.
Reflect the results of effective policy interventions quickly. Because the MPI measures outcomes directly, it will immediately reflect changes such as school enrolment, whereas it can take time for this to affect income.
Over the last few years, sub-Saharan countries have seen significant economic growth. Seven of the ten fastest growing economies in the world between 2011-2015 come from Africa.
But this economic growth has not quite translated into significant poverty reduction. As analysts point out, the number of people on the continent living under $1.25 a day has risen from 358 million in 1996 to 415 million in 2011.
Tanzania for example, which saw an average of 6% GDP growth over the last several years, has grappled with this disconnect. “At the macro-level, we may be doing well, but it does not touch the unemployed or those involved in the informal economy,” a former cabinet minister told Quartz.
However, the latest data from the Pew Research Centre shows that there has been significant poverty reduction in some African countries.
The reduction of poverty and increase in the ranks of the slightly better-off “low-income” category is good news, but the challenge remains that many African countries have not been able to transition people into the middle class.
Africa is still the poorest region in the world overall: With nine out of 10 people either poor or low-income, the continent his home to 20% of the world’s poor, the data show. In some countries virtually the entire population is poor or low-income. The picture is somewhat brighter in Seychelles, Tunisia, South Africa, Morocco and Egypt, where 20% are either middle income or better
(Gulf News, NEW YORK, 10 July 2015): The dramatic lurch of hundreds of millions of people from poverty since the millennium began has not resulted in a truly global middle class, a new report says.
Instead, the improvement in living conditions for almost 700 million people has been a step forward from the desperate existence of $2 or less a day into a low-income world of living on $2 to $10 daily, the Pew Research Center says.
Its report, released Wednesday, looks at changes in income for more than 110 countries between 2001 and 2011, the latest that data for such a large range of countries was available.
The report comes just two days after the United Nations announced success in key development goals adopted by world leaders at the start of the millennium, including the lifting of more than one billion people out of extreme poverty.
Also worth noting: Europe and North America’s global share of the upper-middle income population fell from 76 per cent to 63 per cent by 2011 as the Asia-South Pacific region got richer. Africa remained the poorest region, with 92 per cent of its population either poor or low-income by 2011, and in Cote d’Ivoire, Kenya, Madagascar and Zambia, “poverty actually increased significantly.”
For years, reaching middle class has been held out as a goal for people in a growing number of countries. China’s rise in particular, with 203 million people there moving into a middle-income life over the decade starting in 2001, has resulted in what the report calls a “pivot to the east.”
More than half of the world’s middle-class population was living in the Asia and South Pacific region by 2011. That’s a jump from 31 per cent to 51 per cent in a decade. Largely because of Asia, the report says the world’s middle-income population nearly doubled over that time, from 399 million to 784 million.
But the gains are hardly seen everywhere. The report shows that while commodity-rich South America and a strengthening Eastern Europe, including Russia, also made strides into the middle class, Africa, India and many parts of Asia have yet to do the same.
The Pew report calls its overall findings “the uneven geography of the emerging middle class.”
The poverty rate for India, Asia’s other population giant, fell from 35 per cent to 20 per cent over the report’s period, but its middle class only grew from 1 per cent to 3 per cent. The report notes that India’s economic reforms began in 1991, 13 years after China, though the scope and pace of the countries’ reforms have varied.
South America almost reached the point where half of its population is at or above middle-income, at 47 per cent.
And despite China’s rise, more than three-fourths of its people were still poor or low-income. The only other countries seeing a significant shift into the middle class, where the poverty rate fell by at least 15 per cent and the middle-income population grew by at least 10 per cent, were Bhutan, Moldova, Ecuador, Argentina and Kazakhstan.
Among countries with a large number of high-income people, or those living on more than $50 a day, the United States stood out from its Western peers by slipping as its economy stalled. Its high-income population actually edged down, from 58 per cent in 2001 to 56 per cent in 2011.
Factors like conflict and falling oil prices likely have affected the findings for some economies, such as Russia’s, in the past few years, the report notes.
Africa: a continent of wealth, a continent of poverty
By Tom Lebert, senior international programme officer (Resources & Conflict) at War on Want.
At New Internationalist Blog
There has been much talk of an African renaissance in recent years. Thabo Mbeki, South Africa’s second post-apartheid president, has spoken of a ‘rebirth that must encompass all Africans’. So as African politicians and mining companies convene in London this week for ‘Mining on Top’ – Africa’s annual mining summit – where are the voices of civil society? Their absence speaks volumes.
Africa is blessed with a rich bounty of natural resources. The continent holds around 30% of the world’s known mineral reserves. These include cobalt, uranium, diamonds and gold, as well as significant oil and gas reserves. Given this natural wealth it comes as no surprise that, with the tripling of global mineral and oil prices in the past decade, mining has exploded on the African continent. Over the period 2000 to 2008 resource extraction contributed more than 30% of Africa’s GDP while the annual flow of foreign direct investment into Africa increased from $9 billion to $62 billion (most of this into extractive industries). However, despite being so richly endowed, and despite the mining boom of the past decade, Africa has drawn little benefit from this mineral wealth and remains one of the poorest continents on the globe, with almost 50% of the population living on less than $1.25 per day.
So, why is it that a continent with such vast potential wealth can remain so poor? It is in large part down to ‘illicit financial flows’: the illegal movement of money or capital from one country to another. The exploitation of mineral resources has all too often led to corruption and a large proportion of the continent’s resources and revenues benefiting local and foreign elites rather than the general population. Trade mispricing (and in particular transfer pricing and trade misinvoicing) is the most common way of transferring illicit funds abroad. Through trade mispricing, companies seek to maximize profits artificially through maximizing expenses in high-tax jurisdictions and maximizing revenue and income in low-tax jurisdictions. This enables corporations to minimize tax payments illegally and transfer the funds abroad.
Such illicit flows undermine social development and stymy inclusive economic growth. Instead of investing resource revenues into improving infrastructure, health and education, political elites, often in collusion with mining companies, have siphoned off proceeds from the continent’s mineral and oil wealth – lining their own pockets to the detriment of ordinary Africans.
Zambia presents as a wealthy country – the largest producer of copper in Africa and the 7th-largest globally. Yet Zambia is one of the poorest countries in the world, with 74% of the population living on less than $1.25 a day and 43% of the population being undernourished. This is in part due to a haemorrhaging of wealth, mainly to transnational mining companies. According to the Zambian Deputy Finance Minister, in 2012 the country was losing $2 billion a year from tax avoidance – around 10% of Zambia’s GDP. The mining industry was the largest culprit and the bulk of the loss was attributed to transfer pricing – where parts of the same company trade with each other at prices that they determine on their own – and to the over-reporting of costs and under-reporting of production. The situation is compounded by overly generous tax incentives provided to companies by the Zambian government.
The Zambian example is not an isolated case. Such corporate practices in the mining sector are common right across the continent. In South Africa, illegal capital flight through trade-misinvoicing (a means to evade tax) is rife in the ores and metals sector. Over the period 1995 to 2006 trade misinvoicing alone amounted to $167 million. And when it comes to fuel-exporting countries, over the period 1970 to 2008 states were losing on average $10 billion per year because of misinvoicing – the sum accounting for nearly half of all illicit financial flows from Africa during this time. Moreover, statistical data generated through the Kimberly Process Certification Scheme, which was introduced in 2003, revealed that diamond production was nearly twice as large as estimated, indicating massive smuggling, under-reporting and tax evasion in the sector. The list goes on.
So, what is to be done? At the heart of any solution must be transparency. Countries need to be more open in their dealings with mining companies, put in place and enforce fairer tax regimes and anti-corruption rules, and pursue economic policies that promote diversified economies and reduce dependence on revenues from mineral wealth. International mining capital would also, of course, have to play by the rules or be held to account for its indiscretions. Such measures would go some way to ensuring that the continent’s wealth benefits ordinary people and puts Africa onto a path to greater prosperity.
Mining routinely disrupts and destroys people’s livelihoods while damaging their health and the environment. It is local communities right across the continent that are most affected by the extractives industry. ‘Mining on Top’ should be the perfect opportunity to bring these communities into the very discussions that will affect their lives. Shamefully, they’ve not been invited. So while the mining elite discuss how best to exploit a continent, ordinary Africans continue to lose out.
The ‘Mining on Top’ Africa – London Summit takes place on 24-26 June at the Park Plaza Riverbank Hotel, 200 Westminster Bridge, SE1 7UT. On Thursday 25 June, War on Want will join London Mining Network and Gaia Foundation in protest at the failure of organizers to include civil-society representatives at the summit.
Leaked Bank Loan Record of Land Grabbers in Gambella
(The Gulele Post) – The following document contains names of individuals and companies who borrowed money from a branch of Development Bank of Ethiopia located in Western Ethiopia for the purpose of investment on farm land development. We have redacted some information to protect our sources. The data shows how much money has been borrowed, by whom and where the supported farm land is located. With exception of few cases, most of the land is taken from Gambella. http://www.gulelepost.com/wp-content/uploads/2014/09/Bank-Loan-for-Land-Grab_Ethiopia.pdf
78 % of land grabbers in Gambella are fascist TPLF from Tigray, evidence from Gambella state. Dhiba keessa qabxii 78 saamicha lafaa Gambella irratti kan bobba’ani woyyaanota/ ilmaan Tigreeti. Ragaa motummaa Gambeellaa irraa argame kan armaa gadiitiin mirkaneessa.
“Politics is at the heart of Africa’s energy crisis. The continent’s power utilities are notoriously inefficient. This is partly down to mispricing and underinvestment. But it’s also because utilities are vehicles for political patronage and, in some cases, institutionalised theft.” “The sheer scale of Africa’s energy deficit often fuels a sense of fatalism and paralysis. Yet on the flipside of this crisis are enormous opportunities. Sub-Saharan Africa has some of the world’s most abundant and least exploited renewable energy sources, especially solar power. With the price of solar panels plunging, there are opportunities for firms and governments to connect millions of poor households to affordable small-scale, off-grid systems. This would help the poorest most.” The Guardian, 5 June, 2015.
Rap-artist Akon smacks that kerosene out of Africa, with solar academy
By Sam Parkinson, RenewEconomy Free Daily Newsletter, 4 June 2015
If you haven’t heard any of Akon’s music such as his hit Smack That, you may missed the pun in the headline, and you may have also done yourself a service (depending on your music taste). However, it is outside of music that Akon is really helping humanity. Having already set up his Lighting Africa initiative, Akon, 42, is now setting up a solar academy in Mali, and will enlist the assistance of European solar technicians and experts to supply training programs, equipment and guidance. Solektra International is to partner on the project. The solar academy will teach students how to install and maintain solar powered electricity systems and microgrids. “We have the sun and innovative technologies to bring electricity to homes and communities,” said Akon Lighting Africa co-founder Samba Baithily. “We now need to consolidate African expertise.” “We expect the Africans who graduate from this center to devise new, innovative, technical solutions,” added Niang. “With this academy, we can capitalize on Akon Lighting Africa and go further.” Akon’s Lighting Africa scheme is present in 14 African countries and continues to expand in an effort to help subsidise the cost of installing solar on households who want to switch from the polluting kerosine lamps (which are currently used by almost 250 million people in Africa without electricity), to solar energy. Read more at: http://reneweconomy.com.au/2015/rap-artist-akon-smacks-that-kerosene-out-of-africa-with-solar-academy-85077
Solar power to the people: how the sun can ease Africa’s electricity crisis
The scale of the continent’s energy deficit often fuels a sense of fatalism and paralysis. Yet on the flipside of this crisis are enormous opportunities
A solar panel on a roof in Guinea-Bissau. Sub-Saharan Africa has some of the world’s most abundant and least exploited renewable energy sources, especially solar power. Photograph: WestEnd61/Rex
“We shall make electric light so cheap that only the wealthy can afford to burn candles,” said Thomas Edison, inventor of the modern lightbulb. That was almost a century and a half ago. Today in Africa, 621 million people – two-thirds of the population – live without electricity. And the numbers are rising. A kettle boiled twice a day in the UK uses five times as much electricity as someone in Mali uses in a year. Nigeria is one of the world’s biggest oil exporters but 93 million residents depend on firewood and charcoal for heat and light. On current trends, there is no chance Africa will hit the global target of energy for all by 2030.
Sudanese refugees stand around solar stoves during a training session in Iridimi camp, north-eastern Chad. Photograph: Corbis
Unlike droughts, health epidemics and illiteracy, Africa’s energy crisis seldom makes the headlines. Yet the social, economic and human costs are devastating. Inadequate and unreliable electricity undermines investment. Power shortages cut economic growth by 2-4% annually. The toxic fumes released by burning firewood and dung kill 600,000 people a year – half of them children. Health clinics are unable to refrigerate life-saving vaccines and children are denied the light they need to study. Politics is at the heart of Africa’s energy crisis. The continent’s power utilities are notoriously inefficient. This is partly down to mispricing and underinvestment. But it’s also because utilities are vehicles for political patronage and, in some cases, institutionalised theft. Some $120m went missing from the Tanzanian state power utility last year through a complex web of offshore companies. The sheer scale of Africa’s energy deficit often fuels a sense of fatalism and paralysis. Yet on the flipside of this crisis are enormous opportunities. Sub-Saharan Africa has some of the world’s most abundant and least exploited renewable energy sources, especially solar power. With the price of solar panels plunging, there are opportunities for firms and governments to connect millions of poor households to affordable small-scale, off-grid systems.
This would help the poorest most. The latest Africa Progress Panel report, published this week, estimates that 138 million households living on less than $2.50 a day spend $10bn annually on energy-related products, including charcoal, candles and kerosene. Measured on a per-unit cost basis, these poor households pay 60-80 times more for energy than people living in London or Manhattan. Off-grid solar power could slash these costs, releasing resources for productive investment, health and education, driving down poverty and raising life expectancy. If you think this is a pipedream, think again. Bangladesh has installed more than 3.5m off-grid solar power systems, and the figure is set to double over the next few years. The key to success? Financial and technical support from government, allied to new business models. In Africa, a vibrant off-grid solar industry is poised for takeoff. The only thing missing in most countries is government action to support, encourage and enable this investment. Supporting the development of large-scale renewable energy is not just the right thing to do for Africa. It is also the smart thing to do on climate change. One of the symptoms of Africa’s energy poverty is the destruction of forests to produce charcoal for rising urban populations: fewer trees means the loss of vital carbon sinks.
Small-scale solar energy can provide millions of people with a first step on the energy ladder. But it cannot in the medium term fill the energy void left by large-scale utilities. African governments must aim for an annual growth rate in power generation of 10% a year for the next two decades – about five times current levels. Countries such as Ethiopia, Kenya and Rwanda have demonstrated this is possible. Both have simultaneously increased public investment while attracting large-scale foreign investment. Aid donors can help by providing bridging loans and helping to reduce risk.
Throughout history electricity has fuelled the growth that has created jobs, cut poverty, and improved the quality of life. Now, almost 150 years after Edison developed the lightbulb, it is time to spark an African energy revolution. We lack neither the finance nor the technologies to do so: all that’s needed is the vital connection of international cooperation and political will.
Kevin Watkins, director of the Overseas Development Institute, is lead author of the 2015 Africa Progress Panel report, Power, People, Planet.
“All animals are equal, but some animals are more equal than others.”
-George Orwell, Animal Farm
“The very common way that the EPRDF and its agents try to shift the public attention from lack of human and democratic rights and the daylight looting of the country’s resources, is by referring to the ‘impressive’ economic development registered in their rule. If they are talking about the only region that they are exclusively devoted to developing, then, they are absolutely right.”
In TPLF /Tigray dominated minority tyrannic regime of Orwellian social and development policy, all nations and nationalities in theory are equal in Ethiopia, but in reality Tigray is more equal than others. This is not a development process.
According to UNDP report, while more than 45% of children in Tigray have achieved Net Lower Secondary Enrollment, the statistics for Oromia is only 16.9%, very huge inequality variations. The report indicated that while Human development Index (HDI) of Tigray is the highest (above national average), states such as Oromia, Afar, Ogaden and Amhara have the lowest HDIs, below the national HDI of 0.461. These are the outcomes of Tigray only, exclusionist, social, economic and development policies of the ruling regime. UNDP is not exposing the Tigray only growth and development strategy but we can read from its data and graphs.
As the TPLF has been engaged (https://oromiaeconomist.wordpress.com/2014/10/30/amnesty-internationals-report-because-i-am-oromo-a-sweeping-repression-in-oromia/) in destabilizing, robbing and massive evictions of people from their ancestral home and land grabs in Oromia, by all sorts of engagement, resource and soil transfers, it has conducting massive subsidized development in its Tigray home. In other studies, BBC Magazine in its 20th April 2015 publication under the title ‘ Turning Ethiopia’s desert green,’reports: ” A generation ago Ethiopia’s Tigray province was stricken by a famine that shocked the world. Today, as Chris Haslam reports, local people are using ancient techniques to turn part of the desert green. In the pink-streaked twilight, a river of humanity is flowing across Tigray’s dusty Hawzien plain. This cracked and desiccated landscape, in Ethiopia’s far north, occupies a dark corner of the global collective memory. Thirty years ago, not far from here, the BBC’s Michael Buerk first alerted us to a biblical famine he described as “the closest thing to hell on earth”. Then Bob Geldof wrote Do They Know It’s Christmas? – a curious question to ask of perhaps the world’s most devoutly Christian people – and thereafter the name Tigray became synonymous with refugees, Western aid and misery. The Tigrayan people were depicted as exemplars of passive suffering, dependent on the goodwill of the rest of the planet just to get through the day without dying. But here, outside the village of Abr’ha Weatsbaha, I’m seeing a different version. From all directions, streams of people are trickling into that human river.” http://www.bbc.co.uk/news/magazine-32348749.
Martin Plaut’s analysis which is based on world banks report is also interesting and important to refer here which is as follows:-
The World Bank has just published an authoritative study of poverty reduction in Ethiopia. The fall in overall poverty has been dramatic and is to be greatly welcomed. But who has really benefited?
This is the basic finding:
In 2000 Ethiopia had one of the highest poverty rates in the world, with 56% of the population living on less than US$1.25 PPP a day. Ethiopian households experienced a decade of remarkable progress in wellbeing since then and by the start of this decade less than 30% of the population was counted as poor.
There are of course many ways of answering the question – “who benefited” – were they men or women, urban or rural people. All these approaches are valid.
The Ethnic Dimension
But in Ethiopia, where Ethic Federalism has been the primary driver of government policy one cannot ignore the ethnic dimension.
Here this graph is particularly telling:
Tigray first
The answer is clear: it is the people of Tigray, whose party, the TPLF led the fight against the Mengistu regime and took power in 1991, who benefited most. What is also striking is that the Oromo (who are the largest ethnic group) hardly benefited at all.
This is what the World Bank says about this: “Poverty reduction has been faster in those regions in which poverty was higher and as a result the proportion of the population living beneath the national poverty line has converged to around one in 3 in all regions in 2011.”
The World Bank does little to explain just why Tigray has done (relatively) so well, but it does point to the importance of infrastructure investment and the building of roads. It also points to this fact: “Poverty rates increase by 7% with every 10 kilometers from a market town. As outlined above, farmers that are more remote are less likely to use agricultural inputs, and are less likely to see poverty reduction from the gains in agricultural growth that are made. The generally positive impact of improvements in infrastructure and access to basic services such as education complements the evidence for Ethiopia that suggests investing in roads reduces poverty.”
Not surprisingly, the TPLF under Prime Minister Meles Zenawi and beyond concentrated their investment on their home region – Tigray. The results are plain to see. https://martinplaut.wordpress.com/2015/01/23/ethiopias-poverty-reduction-who-benefits/
In its 2014 National Human Development Report, which has been written on the theme of “Accelerating Inclusive Growth for Sustainable Human Development in Ethiopia,” UNDP indicates that 25 million Ethiopians currently remain trapped in poverty and vulnerability. This and many Ethiopians just above the poverty line are vulnerable to shocks and food insecurity. Maternal health care has lagged well behind other health statistics and the availability of effective health care is inconsistent across the country. UNDP’s educational indicators suggest ongoing problems with the quality of education, as shown by retention rates and educational performance markers. UNDP says, perhaps most worrying from the standpoint of inclusive growth are the high rates of un- and underemployment in both urban and rural areas, especially as large numbers of productive jobs for the poor and near-poor are needed under current and projected labour market trends. Economic growth over the past decade has generally meant an increase in productivity and output levels in some parts of the economy, but these have been accompanied by increasing severity of poverty. The absolute number of the poor is roughly the same as 15 years ago and a significant proportion of the population hovers just above the poverty line and is vulnerable to shocks. Moreover, the severity of poverty 2 increased from 2.7 per cent in 1999/2000 to 3.1 per cent in 2010/11 (MoFED, 2013b). The prevalence of vulnerabilities and food insecurity are on the rise.
According to UNDP report, during the last three years (2010/11-2012/13), inflation was in double digits. The inflation rate, which was 18 per cent in 2010/11, increased to 33.7 per cent in 2011/12, declined to 13.5 per cent in 2012/13 and fell further to 8.1 per cent in December 2013. Other studies demonstrate that inflation figures have always been in double digits including 2013 and 2014 and at present.
Further, UNDP says with a Human Development Index (HDI) of 0.435 in 2013, the country is still classified as a “low human development” country, based on UNDP’s Human Development Index. Even though Ethiopia is one of the 10 countries globally that has attained the largest absolute gains in its HDI over the last several years, in the most recent Human Development Report (2014) Ethiopia ranks 173rd out of 187 countries. Thus, its Human Development Index (HDI) has not moved appreciably during the past decade, when compared with other developing countries that have registered similar growth rates. Looking at the HDI values of Seychelles, Tunisia and Algeria, which are in the high HDI bracket, and the other 12 African countries, which are in the medium HDI bracket, the major reasons why Ethiopia is still in the low HDI bracket are low education performance (particularly low mean years of schooling) and low GNI per capita. The minimum mean years of schooling and GNI per capita for medium HDI countries were 3.5 years and US$3,000, respectively in contrast to Ethiopia’s mean years of schooling of 2.6 years and GNI per capita of US$1,300. The inequality-adjusted Human Development index (IHDI), which is basically the HDI discounted for inequalities, is also computed for Ethiopia. Between 2005 and 2013, the IHDI increased from 0.349 to 0.459 indicating an average human development loss of 0.5 per cent per annum due to inequalities in health, access to education and income. According to (UNDP 2014), Ethiopia’s IHDI for 2013 was 0.307 in contrast to HDI of 0.435 indicating an overall human development loss of 29.4 per cent.
With regard to regional disparities in HDI values, while Tigray is significantly above national average, the four states of Afar, Somali, Amhara and Oromia have the lowest HDIs, below the national HDI of 0.461.
The outcome of the development strategy of Tigray only when mathematically averaged to the whole regions cannot hide TPLF’s Apartheid policy on Oromia and the rest as it is only the development focus for 5% of the 94 million population. Thus, Tigray is rich but Ethiopia is poor. Ethiopia is rich and fast growing only for development tourists those who lodge in Finfinne and tour to Tigray to take a sample and conclude the result for the whole states.
With regard to regional disparities in HDI values, while Tigray is significantly above national average, the four states of Afar, Somali, Amhara and Oromia have the lowest HDIs, below the national HDI of 0.461.
Another social indicator which demonstrates that Tigray is more equal than others is health services. UNDP’s report confirms that there are wide inequalities in the immunization status of children in Ethiopia. Children of educated women, rich households, and Finfinnee (Addis Ababa) and Tigray State have higher chances of being fully immunized. Children from the richest and middle income households are less likely to have no immunization at all (by 74 per cent and 57 per cent respectively) compared with those from the poorest households. Children from SNNPR, Oromiya and Amhara are 3.82, 7.00 and 3.65 times less likely to be fully immunized compared with those from Tigray, which has the second highest proportion of fully immunized children. According to UNDP, a report by Save the Children (2014) also raises concerns about equity in health services citing how immunization coverage is different among different income groups, and between urban and rural areas. According to the report, children from richest households are twice as likely to be immunized compared to those from the poorest households and children in urban areas are twice as likely to be immunized as those in rural areas. Based on revised data from the National Water Sanitation and Health Inventory, national potable water supply coverage increased from 58 per cent to 68.4 per cent between 2009/10 and 2012/13, reflecting an increase in both rural and urban coverage. Even though many health outcomes have improved significantly over the last decade, Ethiopia is still lagging behind on some measures. For example, Ethiopia has still higher than expected shares of malnutrition compared with countries at the same income level. What is especially striking about Ethiopia’s health data is the exceptionally high level of maternal mortality, given Ethiopia’s income level.
UNDP argues that that development can be inclusive and reduce poverty only if all people contribute to creating opportunities, share the benefits of development and participate in decision making.
Ethiopia at a Glance (UNDP Report Data)
Population: 85.8 million (2013)
GDP: US$46.6 billion (2013)
GDP per capita: US$550 (2013)
Annual Average Br/US$ exchange rate: 18.3 (2012/13)
Life expectancy at birth (years): 62.2 (2013)
Primary school gross enrolment rate (%): 95.3 (2012/13)
Births attended by skilled health professional (%): 23.1 (2012//13)
Contraceptive prevalence rate (%): 28.6 (2011)
Literacy rate (% of both sexes aged 15 and above): 46.7 (2011)
Unemployment rate (urban) (%): 16.5 (2012/13)
Unemployment rate among urban youth (15-29) (%): 23.3 (2011/12)
Areas further than 5 km from all-weather roads (%): 45.8 (2012/13)
Mobile phone subscribers (million): 23.8 (2012/13)
‘We live in a era of big data, but developing countries are suffering from a data drought: governments and the international community know less about the world’s poorest than they think….While the World Bank estimates that the number of people living on less than $1.25 a day is 1.01 billion, the report claims the number could be up to 350 million more than that…The report, which was based mostly on secondary research, publicly available databases, and original interviews, also claims that maternal mortality figures for sub-Saharan Africa in 2013 could be double the stated 133,000, and the number of people living with HIV/AIDS could have been overstated by 20%…“We take for granted that statistics are based on fact, and that they’re scientific or empirical when often they’re not—they’re estimations or political negotiations,” Elizabeth Stuart, a research fellow at the ODI tells Quartz…There are many reasons for this data dearth. Populations in developing countries often live either in highly spread out or dense, shifting communities like urban slums, making traditional data collection methods, such as censuses and household surveys, expensive, too infrequent and potentially dangerous. Over 40% of countries in sub-Saharan Africa have not had a survey in seven years.’
‘According to ICIJ, which studied 7,200 World Bank financed projects between 2004 and 2013, at least 3.4 million people have lost their land or their jobs because of them and there’s little follow up on how these residents fare after they have been relocated. In some cases, World Bank funding may have funded forced relocations that turned violent: two former Ethiopian officials told ICIJ that funds diverted from a $2 billion health and education initiative have gone toward mass evictions in western Ethiopia where soldiers raped and beat locals.
Of the studied World Bank projects, which range from dams to schools and oil pipelines, more than 400 caused the displacement of locals. This happened mostly in Asia and Africa: 2.72 million have been displaced in China, India and Vietnam, and almost 100,000 in Ethiopia.’
The investigation’s key findings include:
Over the last decade, projects funded by the World Bank have physically or economically displaced an estimated 3.4 million people, forcing them from their homes, taking their land or damaging their livelihoods.
The World Bank has regularly failed to live up to its own policies for protecting people harmed by projects it finances.
The World Bank and its private-sector lending arm, the International Finance Corp., have financed governments and companies accused of human rights violations such as rape, murder and torture. In some cases the lenders have continued to bankroll these borrowers after evidence of abuses emerged.
Ethiopian authorities diverted millions of dollars from a World Bank-supported project to fund a violent campaign of mass evictions, according to former officials who carried out the forced resettlement program.
From 2009 to 2013, World Bank Group lenders pumped $50 billion into projects graded the highest risk for “irreversible or unprecedented” social or environmental impacts — more than twice as much as the previous five-year span.
A team of more than 50 journalists from 21 countries spent 11 months documenting the bank’s failure to protect people moved aside in the name of progress.
While the majority of the population is getting poorer and poorer every year, a minority of the population, especially those loyal to the ruling party, are becoming millionaires overnight. The exaggerated economic development rhetoric of EPRDF is unsubstantiated for it is not based on facts and is against what is happening on the ground. It is simply a means to cover up the unspeakable atrocities they are inflicting up on the people. The inflation that we, ordinary people, are suffering from is mainly their own making. Because of inflation, an item which used to cost one Birr a year ago now costs one birr and 40 cents. This shows that the value of one Birr is approximately 72 cents. http://allafrica.com/stories/201504071221.html
Ethiopia: Why EPRDF’s Growth Rhetoric Is Faulty
Eidmon Tesfaye*
OPINION, allafrica.com
By and large, Ethiopia recorded 17 years of economic stagnation under the leadership of the Dergue, a military government. For example, in 1990/91, the growth rate of the Ethiopian gross domestic product (GDP) was negative 3.2pc, whereas cyclical unemployment was about 12pc, the rate of inflation was about 21pc, and the country’s budget was at a deficit of 29pc of GDP. For the last five years, Ethiopia has gathered momentum by recording steady economic growth. Along with this growth, however, the country has seen an accelerated, double-digit increase in the price of goods and services. The very common way that the EPRDF and its agents try to shift the public attention from lack of human and democratic rights and the daylight looting of the country’s resources, is by referring to the ‘impressive’ economic development registered in their rule. If they are talking about the only region that they are exclusively devoted to developing, then, they are absolutely right.
The reality in other regions of the country, however, speaks quite the opposite. Even if we believe the double digit economic growth that the EPRDF claims to have registered in the last five years, it all will be dwarfed by the sky high rate of inflation, the second highest in Africa – the first being Zimbabwe which is actually experiencing a currency collapse. Thus, inflation has remained a scourge of the Ethiopian economy. Stated in simple words, Ethiopia, at this juncture, is faced with an overheating economy. With the global soaring prices of oil, wheat, corn, and minerals, this condition cannot be regarded as unique to the Ethiopian situation. What makes the Ethiopian case a special one is that Ethiopia is a low-income country. The increase in the Consumer Price Index (the main gauge of inflation), has become very detrimental to the low-income groups and retirees who live with fixed incomes. The risk of inflationary pressure is reducing the purchasing power of the Ethiopian Birr. Because of inflation, an item which used to cost one Birr a year ago now costs one birr and 40 cents. This shows that the value of one Birr is approximately 72 cents. As it stands, financial liberalisation is not an option. Financial intermediaries may accelerate inflation if the National Bank of Ethiopia (NBE) relaxes its financial and monetary policies that regulate them to maintain the statutory liquidity requirement of demand and time deposits. In addition, an increase in money supply could accelerate inflation if the central bank substantially reduces the discount rate or buys existing government bonds from investors. The discount rate is the interest rate charged by the NBE when member banks borrow from it. Ethiopian banks overuse their reserve facilities to boost their credit portfolio. The excess reserve in Ethiopia was due to more savings. The demand for bank credit rose sharply to finance large scale investment projects by the public enterprises and the rapidly expanding private sector. Substantial negative real interest rates and commercial banks’ excess reserves facilitated the rapid expansion of credit. The link between money supply and other determinants of growth is not an automatic process. However, if we abide by the principles of the transmission mechanism, we might argue that the increase in money supply in Ethiopia might have contributed to an increase in investment. However, the problem of inflation in the Ethiopian economic environment cannot be tackled without addressing the large budget deficit.
More signs are appearing to suggest that what the EPRDF says regarding the economic development is incredible. For instance, recently, the Ministry of Finance & Development (MoFED) blamed the Central Statistics Agency (CSA) for its inefficiency in providing accurate data. This accusation is long overdue. An agency which cannot determine the size of population can never be trusted to give us the accurate measure of a relatively complicated matter – growth. At the time when the price of everything was doubling and tripling within a year, the inflation rate instead of being 200pc or 300pc or even more, the same statistics agency reported a much lower inflation rate. This rate is the basic component in calculating the economic development. In order to determine the change in growth, the value of domestic production has to be discounted at the current rate of inflation. If the rate of inflation assumed in discounting is far less than the actual rate, a country will, wrongly, be considered to have registered a higher rate than the actual. This is how, against World Bank and IMF predictions and the economic reality of the world, which is slowly hitting the third world, the authorities are telling us the country will register double digit growth again. While the majority of the population is getting poorer and poorer every year, a minority of the population, especially those loyal to the ruling party, are becoming millionaires overnight. The exaggerated economic development rhetoric of EPRDF is unsubstantiated for it is not based on facts and is against what is happening on the ground. It is simply a means to cover up the unspeakable atrocities they are inflicting up on the people. The inflation that we, ordinary people, are suffering from is mainly their own making. EPRDF companies and their affiliates, of course, have hugely benefitted from the manipulation and exploitation of the very thing that made our life worse and worse, inflation. So this talk of double digit economic development is simply a joke and a bluff. If Ethiopia is to achieve long-term sustainable growth, its developmental process has to be rooted in the Ethiopian system of thought and its people-centered approach, rather than depending on the Western capitalist or Chinese models of industrialisation by invitation to gain various forms of external assistance. Since agriculture is the backbone of the Ethiopian economy, its sustainable development model must be one of self-sufficiency to feed its own people instead of producing environmentally insensitive horticultural products to amass foreign currency.
Contrary to expectations, given the resources and techniques of production, the Ethiopian agricultural sector seems to have exhausted its productivity growth. To improve productivity under these conditions would require substantial investment in research and development. For example, since deforestation, desertification, increase in population, shortage of water, and air-related disease are to a large extent the symptoms of poverty, the poor need to be organised to formulate and implement their own development strategies and ensure that their basic needs are fulfilled. If policymaking is to be based on land security and adhering to environmentally-sensitive, cooperative systems, it is reasonable to assume that Ethiopia would not only achieve growth and equity (with full employment and modest inflation) but could also empower the Ethiopian people to fully participate in the design and management of long-lasting development paradigms. *Eidmon Tesfaye He Is an Expert With Master’s Degree in Agricultural Economics & Rural Development (aerd); He Can Be Contacted Via:Edimondrdae@gmail.com Source: http://allafrica.com/stories/201504071221.html
Director of the Global Justice Now Nick Dearden said:
“It’s scandalous that UK aid money is being used to carve up Africa in the interests of big business. This is the exact opposite of what is needed, which is support to small-scale farmers and fairer distribution of land and resources to give African countries more control over their food systems. Africa can produce enough food to feed its people. The problem is that our food system is geared to the luxury tastes of the richest, not the needs of ordinary people. Here the British government is using aid money to make the problem even worse.”
Ethiopia, Ghana, Tanzania, Burkina Faso, Côte d’Ivoire, Mozambique, Nigeria, Benin, Malawi and Senegal are all involved in the New Alliance.
In a January 2015 piece in The Guardian, Dearden continued by saying that development was once regarded as a process of breaking with colonial exploitation and transferring power over resources from the ‘first’ to the ‘third world’, involving a revolutionary struggle over the world’s resources. However, the current paradigm is based on the assumption that developing countries need to adopt neo-liberal policies and that public money in the guise of aid should facilitate this. The notion of ‘development’ has become hijacked by rich corporations and the concept of poverty depoliticised and separated from structurally embedded power relations.
Some £600 million in UK aid money courtesy of the taxpayer is helping big business increase its profits in Africa via the New Alliance for Food Security and Nutrition. In return for receiving aid money and corporate investment, African countries have to change their laws, making it easier for corporations to acquire farmland, control seed supplies and export produce.
Last year, Director of the Global Justice Now Nick Dearden said:
“It’s scandalous that UK aid money is being used to carve up Africa in the interests of big business. This is the exact opposite of what is needed, which is support to small-scale farmers and fairer distribution of land and resources to give African countries more control over their food systems. Africa can produce enough food to feed its people. The problem is that our food system is geared to the luxury tastes of the…
Here are two different perceptions of the development aid business that is targeting developing countries. One is from Forbes.com; while the other is from Euro-correspondent.com. interestingly, both of these opposing understandings are admitting the controversy of excessive profits made by those rich funding agencies and their middlemen who are paid to invest on their governments’ behalf.
Looking at these contrasting perceptions, they both confirm that it is totally unacceptable to create hundreds of billions of dollars for European agencies and European citizens in just few years out of the poverty of Africa, Asia and Latin America under the covers of development aid and business. Such practices shed lights on the undisclosed objectives of development aid and business.
Claiming that the fast huge wealth made by middlemen, such as Mo Ibrahim and Celtel, from the British aid agencies backing is justified because they made mobile phone revolution…
The Inspection Panel’s report shows that the World Bank has largely ignored human rights risks evident in its projects in Ethiopia. The bank has the opportunity and responsibility to adjust course on its Ethiopia programming and provide redress to those who were harmed. But management’s Action Plan achieves neither of these goals. – Jessica Evans, senior international financial institutions researcher
( FEBRUARY 23, 2015, Washington, DC) – The World Bank should fully address serious human rights issues raised by the bank’s internal investigation into a project in Ethiopia, Human Rights Watch said in a letter to the bank’s vice president for Africa. The bank’s response to the investigation findings attempts to distance the bank from the many problems confirmed by the investigation and should be revised. The World Bank board of directors is to consider the investigation report and management’s response, which includes an Action Plan, on February 26, 2015.
The Inspection Panel, the World Bank’s independent accountability mechanism, found that the bank violated its own policies in Ethiopia. The investigation was prompted by a formal complaint brought by refugees from Ethiopia’s Gambella region concerning the Promoting Basic Services (PBS) projects funded by the World Bank, the United Kingdom’s Department for International Development (DFID), the African Development Bank, and several other donors.
“The Inspection Panel’s report shows that the World Bank has largely ignored human rights risks evident in its projects in Ethiopia,” said Jessica Evans, senior international financial institutions researcher at Human Rights Watch. “The bank has the opportunity and responsibility to adjust course on its Ethiopia programming and provide redress to those who were harmed. But management’s Action Plan achieves neither of these goals.”
The report, leaked to the media in January, determinedthat “there is an operational link” between the World Bank projects in Ethiopia and a government relocation program known as “villagization.” It concluded that the bank had violated its policy that is intended to protect indigenous peoples’ rights. It also found that the bank “did not carry out the required full risk analysis, nor were its mitigation measures adequate to manage the concurrent rollout of the villagisation programme.” These findings should prompt the World Bank and other donors to take all necessary measures to prevent and address links between its programs and abusive government initiatives, Human Rights Watch said.
Rather than taking on these important findings and applying lessons learned, World Bank management has drafted an Action Plan that merely reinforces its problematic current course, Human Rights Watch said. The Action Plan emphasizes the role of programs designed to mobilize communities to engage in local government’s decisions without addressing the significant risks people take in speaking critically.
The Inspection Panel also found that the bank did not take the necessary steps to mitigate the risk presented by Ethiopia’s 2009 law on civil society organizations. The law prohibits human rights organizations in Ethiopia from receiving more than 10 percent of their funding from foreign sources. As a result of the law, most independent Ethiopian civil society organizations working on human rights issues have had to discontinue their work.
The plan also pledges to enhance the capacity of local government staff to comply with the bank’s policies and to provide complaint resolution mechanisms without addressing the role of the local government in human rights abuses. This continues an approach of seeing the officials implicated in human rights abuses as a source of potential resolution, Human Rights Watch said. Management has also concluded, contrary to the Inspection Panel, that the World Bank is adequately complying with the bank’s policy to protect the rights of indigenous peoples.
Human Rights Watch research into the first year of the villagization program in the western Gambella region found that people were forced to move into the government’s new villages. Human Rights Watch found that the relocation was accompanied by serious abuses, including intimidation, assaults, and arbitrary arrests by security officials, and contributed to the loss of livelihoods for the people forced to move. While the Ethiopian government has officially finished its villagization program in Gambella, it is forcibly evicting communities in other regions, including indigenous people, ostensibly for development projects such as large-scale agriculture projects.
Donors to the Ethiopia Promoting Basic Services Program, including the World Bank and the UK, have repeatedly denied any link between their programs and problematic government programs like villagization.
Human Rights Watch has long raised concerns over inadequate monitoring and the risks of misuse of development assistance in Ethiopia. In 2010 Human Rights Watch documented the government’s use of donor-supported resources and aid to consolidate the power of the ruling Ethiopian People’s Revolutionary Democratic Front (EPRDF). Government officials discriminated on the basis of real and perceived political opinion in distributing resources, including access to donor-supported programs, salaries, and training opportunities. Donors have never systematically investigated these risks to their programming, much less addressed them.
The Inspection Panel report is the first donor mechanism that has investigated the donor’s approach to risk assessment in Ethiopia. Although the Inspection Panel adopted a narrow view of its mandate and decided explicitly to exclude human rights violations, its findings underscore the need for donors to considerably enhance and broaden their risk assessment processes in Ethiopia. These processes are crucial for ensuring that their programs advance the social and economic rights of the people they are intended to benefit, without violating their human rights. Management’s response misrepresents the panel’s view of its mandate, erroneously concurring “with the panel’s conclusion that the harm alleged in the Request cannot be attributed to the Project” – the Inspection Panel report makes no such sweeping conclusion.
“The bank directors should send management’s response and Action Plan back and insist on a plan that addresses the Inspection Panel’s findings and the concerns of the people who sought the inquiry,” Evans said. “A meaningful Action Plan should address the program in question, bank-lending in Ethiopia more broadly, and how to apply lessons from these mistakes to all bank programing in high-risk, repressive environments around the world.”
The Action Plan should include provisions for high-level dialogue between the bank and the Ethiopian government to address key human rights issues that are obstacles to effective development, Human Rights Watch said. These issues include forced evictions and development-related displacement, restrictions on civil society, including attacks on independent groups and journalists, discriminatory practices, and violations ofindigenous peoples’ rights.
The plan should include provisions for identifying and mitigating all human rights risks and adverse impacts at the project level, and for independent monitoring to make sure these concerns are fully addressed. The plan should also include provisions for people affected by projects to be involved in projects from their conception and remedies for people negatively affected by bank projects.
Given the climate of fear and repression in Ethiopia, Gambella residents who brought the complaint to the bank and have taken refuge in South Sudan and Kenya are unlikely to feel safe returning home. In light of this, the Action Plan should address their most urgent needs abroad, including education and livelihood opportunities, Human Rights Watch said.
The Inspection Panel’s findings also have wider implications for donor programming in Ethiopia. Donors’ current appraisal methods do not consider human rights and other risks from their programs. The panel highlighted particular problems with budget support or block grants that cannot be tracked at the local level.
“The Inspection Panel report illustrates the perils of unaccountable budget support in Ethiopia,” Evans said. “Donors should implement programs that ensure that Ethiopia’s neediest participate in and have access to the benefits of donor aid.”
As you are aware, Human Rights Watch has researched and documented human rights violations that the government of Ethiopia has committed in the course of its “villagization” program in both Gambella and in the Lower Omo valley. We have also reported on the links between villagization and the various iterations of the World Bank’s Promoting/ Protection of Basic Services projects. With this in mind, I write to you as your staff are working to prepare an action plan responding to the Inspection Panel’s findings of non-compliance in its Ethiopia investigation.
We urge you to ensure that World Bank management responds to the Inspection Panel findings comprehensively in its action plan. Human Rights Watch has been profoundly disappointed by the lack of constructive engagement of World Bank management on the problems of villagization in Ethiopia and its unwillingness to work to address a range of human rights risks in its programming. The concerns raised in the Investigation Panel’s report are an opportunity to adjust management’s course on its Ethiopia programming and address these issues.
We believe the Action Plan should include a commitment to:
1. Enhance Management’s High Level Dialogue with the Ethiopian Government
Whenever World Bank staff, particularly you or President Kim, meet with the Ethiopian government, we urge you to raise the continuing negative impact that several Ethiopian government policies and practices are having on development efforts.
First, forced evictions and development-related displacement continues to have serious negative effects on communities in various parts of the country, well beyond Gambella. While the government has officially finished its villagization program, it continues to forcibly evict people, including indigenous peoples, from their land ostensibly for development projects, including large-scale agriculture, including for sugar plantation development in the Lower Omo Valley. Bank staff should work with other donors to highlight problems with ongoing practices, as well as pointing to key standards (which should include the UN Basic Principles and Guidelines on Development-based Evictions and Displacement, and standards and jurisprudence of the African regional human rights institutions). While we recognize bank management has discussed some concerns about villagization before and supported the development of standards for involuntary resettlement, relying on the Bank’s safeguards, dialogue needs to recognize the problems with the existing practices and advise on how to address them.
Second, it is crucial that the Bank asserts the importance of civic participation and social accountability for effective development. This means consistently raising concerns, and urging reforms of the Ethiopian government’s Charities and Societies Proclamation and Anti-Terrorism Proclamation, which have had such a devastating impact on the ability of Ethiopians to exercise their rights to freedom of expression, association and assembly. It is also crucial that the Bank and other donors press the Ethiopian government to reverse the practices of arbitrary arrest and detention, and politically motivated prosecutions of independent journalists, activists, and opposition party members including media reporting on problematic “development” initiatives. Independent nongovernmental organizations and media are essential for accountability, and these repressive policies undermine both civic participation and social accountability.
Third, you should raise concerns over discriminatory practices in the country, both on the basis of ethnic background and political opinion. President Kim has spoken passionately about the scourge of discrimination. This should translate into a dialogue with the government not only about how discrimination is wrong, but how it undermines development. Human Rights Watch and others have documented discriminatory practices against individuals not supporting the ruling party in the distribution of the benefits of development, including access to agricultural inputs like seeds and fertilizers, micro-credit loans and job opportunities. In this context, bank management should highlight these ongoing discriminatory practices, including against those who do not support the ruling party and against indigenous groups in areas where villagization occurred including Gambella and the Lower Omo valley.
Finally, it is essential that Ethiopia respect and protect the rights of indigenous peoples. You may want to consider the work of the African Commission on Human and Peoples’ Rights, which has on several occasions discussed indigenous rights within the African context. The African Commission’s Working Group on Indigenous Populations/ Communities has suggested that, in determining whether groups fall within the definition of indigenous peoples, the:
focus should be on … self-definition as indigenous and distinctly different from other groups within a state; on a special attachment to and use of their traditional land whereby their ancestral land and territory has a fundamental importance for their collective physical and cultural survival as peoples; on an experience of subjugation, marginalization, dispossession, exclusion or discrimination because these people have different cultures, ways of life or modes of production than the national hegemonic and dominant model.
The Commission has helpfully addressed common misconceptions regarding indigenous peoples in Africa, paraphrased in attachment 1.
2. Address Risks at the Project Level
The report of the Inspection Panel shows that the World Bank needs to have systems in place to analyze and avoid or mitigate the above and other human rights risks linked to its projects in Ethiopia. The Bank should acknowledge that the repressive environment in Ethiopia requires an entirely different approach to participation and social accountability. It should work with other donors to develop creative methods for participation that avoid risks of reprisals against those who express dissent and to encourage fearful individuals to use mechanisms and institutions that ensure participation and accountability, free of intimidation and fear. In recognition of the difficulties of ensuring participation and effective, secure avenues for accountability, the Bank should routinely identify security risks for project-affected persons including the risk of reprisal if individuals criticize a project or oppose resettlement.
Considering the high-risk environment, World Bank management should explicitly report to the board on how it has analyzed and addressed all risks of social and human rights impacts in each project in Ethiopia at least annually. Such a report should outline how management has addressed security risks, risks of all forms of discrimination, potential obstacles to participation and accountability, and risks related to land rights or forced evictions, as well as any other potential adverse social or human rights impact.
The World Bank should also ensure that it comprehensively complies with its Indigenous Peoples’ policy in all projects in which indigenous peoples stand to be impacted, directly or indirectly. Compliance needs to go beyond consulting with indigenous peoples in the course of undertaking a social impact assessment, and instead involve comprehensive participation of indigenous peoples in all bank-projects that affect them beginning at the project proposal stage and throughout the entire project cycle. The World Bank should only proceed with projects that affect indigenous peoples with their free, prior, and informed consent as provided by international law.
Furthermore, the bank should require independent third party monitoring and independent grievance redress mechanisms for all of its projects in Ethiopia. Until the environment for independent organizations, including nongovernmental organizations and the media, improves substantially, there is little opportunity for individuals to report problems with World Bank projects. Many of the existing grievance redress mechanisms lack independence from the government or, equally important, are perceived to lack independence.
While the bank has championed its “social accountability mechanisms” in Ethiopia, we question the effectiveness of these mechanisms within the current repressive environment. Statements from the requesters indicate that they would never utilize such mechanisms because of government involvement, and the Bank should heed these concerns. Unfortunately, to date, the bank does not appear to have addressed the question of how these mechanisms can be effective within the current repressive environment. The World Bank needs to find alternative, effective mechanisms to supervise its projects and permit people to safely complain about grievances.
Finally, in accordance with the World Bank’s commitment to and expertise regarding fiscal transparency and accountability, management should only support projects for which funds can be tracked. Tracking the funding is necessary for tracking the full impacts of a World Bank-financed project. It is also particularly relevant considering the bank’s decision not to provide direct budget support to Ethiopia because of the high-risk environment. The Inspection Panel pointed to the challenge of tracking PBS’ financing, in particular, because the government did not share key financial information. This is immensely problematic and should be promptly remedied.
3. Provide the Requesters with a Remedy
The requesters have proposed measures to remedy the problems they highlighted in their complaint and a strong Action Plan is needed to address these concerns, which Human Rights Watch supports. I attach their letter for ease of reference.
The Action Plan should provide effective development and much-needed basic services to the people of Gambella, free of the requirement to be supportive of the ruling party. As indigenous people, the requesters should be partners in the World Bank’s development initiatives, which includes the right to be meaningfully consulted and for development projects to only go forward with their consent, free of any intimidation.
Given the climate of fear and repression that exists in Ethiopia, it is unlikely that many requesters will feel safe to return home to Gambella. In light of this, the Action Plan should address some of the most urgent needs of the requesters in the refugee communities including the lack of education and livelihood opportunities.
Finally, we urge the World Bank management to present the final Action Plan to the requesters in person in Kenya and South Sudan, comprehensively explaining it and responding to the requestors’ letter.
Thank you for considering our recommendations. I would be most happy to discuss them with you or your staff further. I look forward to your response.
Sincerely,
Jessica Evans
Senior Advocate on International Financial Institutions
The African Commission’s Working Group on Indigenous Populations / Communities has debunked several misconceptions regarding indigenous peoples in Africa:
Misconception 1: To protect the rights of indigenous peoples gives special rights to some ethnic groups over and above the rights of all other groups.
Certain groups face discrimination because of their particular culture, mode of production, and marginalized position within the state. The protection of their rights is a legitimate call to alleviate this particular form of discrimination. It is not about special rights.
Misconception 2: Indigenous is not applicable in Africa as “all Africans are indigenous.”
There is no question that Africans are indigenous to Africa in the sense that they were there before the European colonialists arrived and that they were subject to subordination during colonialism. When some particular marginalized groups use the term “indigenous” to describe themselves, they use the modern analytical form (which does not merely focus on aboriginality) in an attempt to draw attention to and alleviate the particular form of discrimination they suffer from. They do not use the term in order to deny other Africans their legitimate claim to belong to Africa and identify as such.
Misconception 3: Talking about indigenous rights will lead to tribalism and ethnic conflicts.
Giving recognition to all groups, respecting their differences and allowing them all to flourish does not lead to conflict, it prevents conflict. What creates conflict is when certain dominant groups force a contrived “unity” that only reflects perspectives and interests of powerful groups within a given state, and which seeks to prevent weaker marginal groups from voicing their unique concerns and perspectives. Conflicts do not arise because people demand their rights but because their rights are violated. Protecting the human rights of particularly discriminated groups should not be seen as tribalism and disruption of national unity. On the contrary, it should be welcomed as an interesting and much needed opportunity in the African human rights arena to discuss ways of developing African multicultural democracies based on the respect and contribution of all ethnic groups.
Source: Paraphrased from Report of the African Commission’s Working Group on Indigenous Populations/Communities, Adopted by the African Commission on Human and Peoples’ Rights at its 34th Ordinary Session, November 6-20, 2003.
Biofuels Are Not a Green Alternative to Fossil Fuels
by Andrew Streer* and Craig Hanson**
Powering cars with corn and burning wood to make electricity might seem like a way to lessen dependence on fossil fuels and help solve the climate crisis. But although some forms of bioenergy can play a helpful role, dedicating land specifically for generating bioenergy is unwise. It uses land needed for food production and carbon storage, it requires large areas to generate just a small amount of fuel, and it won’t typically cut greenhouse gas emissions.
First, dedicating areas to bioenergy production increases competition for land.
Roughly three-quarters of the world’s vegetated land is already being used to meet people’s need for food and forest products, and that demand is expected to rise by 70 percent or more by 2050. Much of the rest contains natural ecosystems that keep climate-warming carbon out of the atmosphere, protect freshwater supplies, and preserve biodiversity.
Because land and the plants growing on it are already generating these benefits, diverting land—even degraded, under-utilised areas—to bioenergy means sacrificing much-needed food, timber, and carbon storage.
Second, bioenergy production is an inefficient use of land.
While photosynthesis may do a great job of converting the sun’s rays into food, it is an inefficient way to turn solar radiation into non-food energy that people can use. Thus, it takes a lot of land (and water) to yield a small amount of fuel from plants. In a new working paper, WRI calculates that providing just 10 percent of the world’s liquid transportation fuel in the year 2050 would require nearly 30 percent of all the energy in a year’s worth of crops the world produces today.
The push for bioenergy extends beyond transportation fuels to the harvest of trees and other sources of biomass for electricity and heat generation. Some research suggests that bioenergy could meet 20 percent of the world’s total annual energy demand by 2050. Yet doing so would require an amount of plants equal to all the world’s current crop harvests, plant residues, timber, and grass consumed by livestock–a true non-starter.
Third, bioenergy that makes dedicated use of land does not generally cut greenhouse gas emissions.
Burning biomass, whether directly as wood or in the form of ethanol or biodiesel, emits carbon dioxide just like burning fossil fuels. In fact, burning biomass directly emits a bit more carbon dioxide than fossil fuels for the same amount of generated energy. But most calculations claiming that bioenergy reduces greenhouse gas emissions relative to burning fossil fuels do not include the carbon dioxide released when biomass is burned. They exclude it based on the assumption that this release of carbon dioxide is matched and implicitly offset by the carbon dioxide absorbed by the plants growing the biomass.
Yet if those plants were going to grow anyway, simply diverting them to bioenergy does not remove any additional carbon from the atmosphere and therefore does not offset the emissions from burning that biomass. Furthermore, when natural forests are felled to generate bioenergy or to replace the farm fields that were diverted to growing biofuels, greenhouse gas emissions go up.
That said, some forms of bioenergy do not increase competition with food or land, and using them instead of fossil fuels could reduce greenhouse gas emissions. One example is biomass grown in excess of what would have grown without the demand for bioenergy, such as winter cover crops for energy. Others include timber processing wastes, urban waste wood, landfill methane, and modest amounts of agriculture residues.
Using so-called second-generation technologies to convert material such as crop residues into bioenergy has a role to play and avoids competition for land. A challenge will be to do this at scale, since most of these residues are already used for animal feed or needed for soil fertility, and others are expensive to harvest.
There are good alternatives to bioenergy made from dedicated land. For example, solar photovoltaic (PV) cells convert sunlight directly into energy that people can use, much like bioenergy, but with greater efficiency and less water use. On three-quarters of the world’s land, solar PV systems today can generate more than 100 times the usable energy per hectare as bioenergy. Because electric motors can be two to three times more efficient than internal combustion engines, solar PV can result in 200 to 300 times as much usable energy per hectare for vehicle transport compared to bioenergy.
One of the great challenges of our generation is how the world can sustainably feed a population expected to reach 9.6 billion by 2050. Using crops or land for biofuels competes with food production, making this goal even more difficult.
The world’s land is a finite resource. As Earth becomes more crowded, fertile land and the plants it supports become ever more valuable for food, timber and carbon storage—things for which we don’t have an alternative source.
*Dr Steer is president of the WRI. **Hanson is the WRI’s global director of food, forest and water programmes
This blog post was originally published in The Guardian on January 29, 2015.
“In our recently released report – The Poor are Getting Richer and Other Dangerous Delusions – we showed that there are now almost double the number of people living on under $2 a day in sub-Saharan Africa than there were in 1981.”
“In fact, the alternatives to industrial agriculture can be more effective in combating hunger. Small-scale sustainable agriculture (agroecology) can, by cutting out the corporates and their fat profit margins, feed more people, more sustainably, than any large-scale farm using patented seed to produce food for export. Indeed, a recent study (using data from 57 developing counties) showed that farmers switching to sustainable methods on average increased their yields by 73 per cent.”
“Instead of trying to fight African farmers into submission and turning them into a disenfranchised corporate labour force, Gates should be promoting their freedom to adopt practices that help improve their livelihoods.” http://leftfootforward.org/2015/02/why-bill-gates-big-bet-for-the-future-is-wrong/
Why Bill Gates’ ‘big bet for the future’ is wrong
By Alex Scrivener is policy officer at Global Justice Now
The world’s richest man has a solution to Africa’s hunger problem – and it’s not a good one
He’s done it again. Bill Gates has saved the world.
At least, he has put out his annual letter in which the world’s richest man tells us how well things are going in the world and how a whole host of serious global problems are going to be ‘solved’ soon.
Last year, he devoted his letter to busting three ‘myths that block progress for the poor’. In it, he expounded the triumphalist argument that ‘the world is better than it has ever been’, the implication being that it is aid, alongside the benevolent hand of the market, that has helped people out of poverty.
Unfortunately, the world is not doing as well as he says. In our recently released report – The Poor are Getting Richer and Other Dangerous Delusions – we showed that there are now almost double the number of people living on under $2 a day in sub-Saharan Africa than there were in 1981.
And the countries, like Venezuela and China, where there has been significant poverty reduction have actually received very little aid and have often ignored many of the economic policies advocated by the World Bank, IMF and big business moguls like Gates.
In his new letter, Gates has turned his attention to a more specific set of problems, but the same triumphalist tone dominates.
His ‘big bet’ is that the lives of people in poor countries will improve faster in the next 15 years than at any other time in history. Child deaths will fall by half, Africa will be able to feed itself, mobile banking and better software will radically improve the lives of the poor.
I can only hope that he’s right. But if there’s one thing for sure, it’s that if we want to attain these goals, we shouldn’t follow some of the policies that he advocates.
For one of his targets, halving child deaths, Gates doesn’t even say how he sees this happening. Although the reference to pharmaceutical companies donating drugs suggests that he sees the answer in charity by the very companies that are killing many poor people by denying them cheap generic drugs. Suffice to say, I don’t share his optimism on this.
But it is his proposed solution to Africa’s hunger problem which is potentially the most dangerous.
As with pretty much every global problem one could care to mention, Gates’ answer to the problem of African hunger involves business, charity and that wonderfully vague concept of ‘innovation’.
Gates compares crop yields in Africa to those of the USA and concludes that the problem would be solved if only Africa used more intensive farming methods and introduced new strains of corn and wheat.
What he doesn’t say explicitly in the letter, is that these new grains and ‘innovative’ farming methods will come as part of a corporate takeover of African agriculture. Gates’ charitable foundation is a major backer of the Alliance for a Green Revolution in Africa (AGRA), a scheme that has been criticized because of the involvement of huge agribusiness corporation Monsanto.
AGRA is based on a similar green revolution in Asia, which raised crop yields at the cost of bringing increased rural inequality and decreased biodiversity. Asia’s green revolution certainly made the food production statistics look better, but the intensive industrial farming methods it favoured were often actually quite damaging for the rural communities the project was theoretically helping.
This is the model that Gates wants in Africa. Out with the inefficient peasant farmers, in with corporate, large-scale, intensive farms.
But if food production increases, isn’t it worth getting rid of peasant farming and replacing it with large-scale farms, despite the negative side-effects?
This argument makes sense on a superficial level. However, while industrial agriculture can increase crop yields, there are other more sustainable ways of achieving the same result.
In fact, the alternatives to industrial agriculture can be more effective in combating hunger. Small-scale sustainable agriculture (agroecology) can, by cutting out the corporates and their fat profit margins, feed more people, more sustainably, than any large-scale farm using patented seed to produce food for export. Indeed, a recent study (using data from 57 developing counties) showed that farmers switching to sustainable methods on average increased their yields by 73 per cent.
Instead of trying to fight African farmers into submission and turning them into a disenfranchised corporate labour force, Gates should be promoting their freedom to adopt practices that help improve their livelihoods.
Another part of the answer may lie in allowing Africa to go back to the future – the continent was self-sufficient in food in the 1960s. Since then, African countries have been forced to open their markets to foreign imports by countries that hypocritically preach the gospel of free markets while heavily protecting their own agricultural industries with subsidies and tariffs. Unravelling this unfair state of affairs could help African producers compete.
Bill Gates probably genuinely believes he is a force for progress. But until he wakes up to the reality that more sustainable and effective alternatives exist to the mainstream corporate solutions, he could end up doing more harm than good.
RAlex Scrivener is policy officer at Global Justice Now
“The new battle for Africa does not deploy strong-arm tactics, it is now a soft power game: economic and humanitarian aid, interest-free loans, preferential trade agreements and investments in infrastructure are currency across a continent that is, for the world’s established and emerging powers, seemingly up for grabs.” Al Jazeera
“Some private-equity money is going into private health clinics and educational institutions such as universities. In much of the rich world, bringing the profit motive into public services is controversial; in Africa, where there is so much unmet need for such services, there is less of a taboo. In general, African entrepreneurs have begun to appreciate how private equity can help their businesses expand and, by improving such things as internal auditing and book-keeping, make them more robust. The rich world’s negative association of private equity with asset-stripping “vultures” does not apply here.” The Economist
Decades after the European powers carved up the African continent for their own imperial needs, Africa is undergoing a new wave of resource and strategic exploitation – some are calling it the new scramble for Africa.
The United States is increasing its footprint across Africa with AFRICOM, fighting terrorism and ensuring stability are the trumpeted motivations. Resource security is a more hushed objective.
But it is not just about the US.
During the last decade, China’s trade with Africa not only caught up with America’s, it has more than doubled it.
The new battle for Africa does not deploy strong-arm tactics, it is now a soft power game: economic and humanitarian aid, interest-free loans, preferential trade agreements and investments in infrastructure are currency across a continent that is, for the world’s established and emerging powers, seemingly up for grabs.
India, Brazil and Russia are all invested in Africa’s present and future, and old imperial powers like France are fixing to retain their loosening grip on the riches of former colonies.
So what does all this mean for Africa and Africans?
Ethiopia dam will turn Lake Turkana into ‘endless battlefield’, locals warn
John Vidal, The Guardian
Ethiopia dam will turn Lake Turkana into ‘endless battlefield’, locals warn
Kenyans near world’s largest desert lake predict conflict, hunger and cultural devastation when hydroelectric project is completed.
The Turkana are traditionally nomadic pastoralists, but they have seen the pasture that they need to feed their herds suffer from recurring droughts and many have turned to fishing. However, Lake Turkana is overfished, and scarcity of food and pastureland is fuelling long-standing conflict with Ethiopian indigenous Dhaasanac, who have seen grazing grounds squeezed by large-scale government agricultural schemes in southern Ethiopia.
Locals fear the completion of the Gibe III dam could exacerbate tension in the region between Kenyans and Ethiopians.
People living near Lake Turkana in northern Kenya have little understanding that the fresh water essential to their development is likely to dry up when a huge hydoelectric dam in neighbouring Ethiopia is completed.
Fishermen, farmers, teachers and others living near the world’s largest desert lake say Turkana’s volume has reduced significantly over the past 30 years because of higher temperatures and changing weather patterns.
But few of the 100 people interviewed by a Kenyan researcher for International Rivers watchdog said they had been consulted or warned what could happen when the reservoir of the Gibe III dam, one of Africa’s largest hydropower projects, is completely filled in about three years’ time. The $1.8bn construction project, which is 90% complete, will start limited power generation in June.
The downstream impact of the dam is hotly contested. Some hydrologists have predicted that Ethiopia’s expansion of water-intensive sugar and cotton plantations on the Omo river, which the Gibe 111 dam allows, could reduce flow to Lake Turkana by up to 70%. This would kill ecosystems and greatly reduce the water level of the lake.
This, says International Rivers, could make the difference between marginal livelihoods and famine for the tens of thousands of already vulnerable people who depend on the lake for their livelihoods.
When told of the possible impact of the project, ethnic groups and communities near the lake predicted widespread conflict, hunger and cultural devastation. “If the Gibe III dam is constructed, the lake will dry up and this will lead to desertification and there will be depletion of resources: there will be no fish, no farming, and low humidity [and less rain]. If that is the case, the community will be finished,” said Sylvester Ekariman, chairman of the council of elders in Kakalel pastoral village.
The government says the Gibe III dam will boost development, give access to power for many Ethiopians — about half of the population — currently living without it. But critics say Ethiopia must also consider the environmental and social impact it will have on some 500,000 people living downstream and at Lake Turkana in neighbouring Kenya, who rely on the river for their livelihood.
Currently, the lake, which could split into two if incoming water is restricted, helps to prevent conflict between communities in Ethiopia and Kenya, and locally between the Turkanas and the Rendille ethnic groups, who live on opposite sides of the lake. If the lake shrinks, conflict is much more likely, says the report.
“This place will turn into an endless, uncontrollable battlefield,” said Joseph Atach, an assistant chief at Kanamkuny village.
Helen Alogita, a seed seller, told researcher Narissa Allibhai that she feared the people living on the other side of the lake. “They will come and kill us and that will bring about enmity among us as we turn on each other due to hunger. Find the person [building the dam] and ask them where they expect our communities to go? Where are our Kenyan leaders? If famine and hunger will make us die of starvation, where will they get votes from?”
Fisherman Dennis Epem said: “When the lake goes back, our enemies, which are the people of Ethiopia, will be reaching here. They have weapons, but we don’t have weapons. How will we defend ourselves when the people of Ethiopia cross? This lake is our security.”
Many of the people interviewed in the 14 communities said they were angry that an Ethiopian dam should affect Kenyans. “Not a single country [should] harm the other one by taking its waters without discussing with the other countries, because water is life. It should not be decided by one country. Who is funding these Gibes? They should withdraw their assistance or the loans they are giving,” the researcher was told.
Children sitting on the Omo River bank which is slightly cracked due to the lowering of water level. Gibe III Dam, Africa’s Tallest Dam with installed capacity of 1870 MW which is under construction, is said to impact 500,000 Ethiopians and Kenyans relying their lives on Omo River and Lake Turkana. The lowering of water level and the change of water salinity may especially impact aboriginal tribes who already live in severe drought and poverty, and may end the fragile peace between tribes.
“Awareness of the dam’s impacts and development process is extremely low,” said Allibhai. “A majority of interviewees were extremely uninformed. Any consultations with local communities were either minimal or non-existent. People in the villages had either heard about the dam only through local NGO Friends of Lake Turkana’s awareness-raising or through rumours; misinformation was rampant.
“Those in the towns were slightly more informed, especially the few with access to the internet – but even so, not one interviewee was sure of the details of the upstream developments, agreements and progress,” she said.
“All community members are opposed to the dam and irrigated plantations, as it will deprive them of their livelihoods and lead to increased famine, conflict and death. Their messages to the Kenyan and Ethiopian governments and the international community reflect their despair, and feelings of helplessness, anger and betrayal.”
Many older people said the developments in Ethiopia could tip the region into a crisis because climate change had made them more vulnerable. The lake was already much smaller than it was 30 years ago and villages like Impressa Beach, Lokitoenyala and Nachukui used to be under water, said locals. Rains are unpredictable and temperatures and wind have increased.
“These water grabs will disrupt fisheries and destroy other ecosystems upon which local people depend,” said Lori Pottinger, International Rivers’ Africa campaigner. “Local people have not been consulted about the project nor informed about its impacts on their lives.”
Both the Kenyan and Ethiopian governments have strongly backed the dam, which they maintain will increase development by providing more electricity.
The World Bank, which has been strongly criticised for funding developments that force evictions, is supporting the transmission line from the dam to Kenyan cities.
The Ethiopian government this week strongly rejected claims that the dam would harm Lake Turkana. A spokeswoman said: “The dam will provide a regular flow of water to Lake Turkana, which gives the possibility of providing a water supply throughout the year, whereas the lake is currently short of water in the dry season. The regular flow of water will also improve the aquatic life of Lake Turkana, providing a better livelihood for people living round the lake.
“The project … is instrumental in forging regional integration – the Gibe III dam will have a role in the realisation of close economic cooperation between Ethiopia, Kenya and the countries beyond. Kenya [will] obtain more than 300MW of electricity from Ethiopia.
“Campaigners are consciously trying to distort all these positive developments … in order to incite misunderstanding between the fraternal countries of Ethiopia and Kenya.” she said.
The Kenyan government was invited to respond to the report but has so far declined.
Suggestions for action by the communities ranged from using force to stop the dam, persuading the the Kenyan government to stand up for the people of Turkana and Marsabit, pressing for donors to withdraw funding and requesting compensation.
British journalist Caroline Knowles writes that Addis Ababa’s city dump (aka Koshe) as the main source of survival for many poor Ethiopians. But, Why the Ethiopian government allow its people to live like this? Is it because they don’t know or because they don’t care?
MY first sight of Koshe, Addis Ababa’s giant 50-year-old landfill site, is from the highway. It runs alongside it, and away from the road as far as the eye can see: a giant, murky, grey-brown raised area of partially decomposed rubbish, with occasional bright specks of colour. As my hopes rise from having found it, my heart sinks as I try to take it in.
The interpreter I have engaged for this mission through my contacts, a junior academic at Addis Ababa University, is not keen on going ahead. Leaving the taxi and crossing the highway by the bridge, I try to absorb the panoramic view afforded by this elevated viewpoint over the highway.
This 36-hectare site – shrinking as the city attempts to regulate it – is patrolled from the air by large vultures, diving into the rubbish. Motley crews of wild dogs gambolling and snatching at the soft ground patrol it at ground level. Smoke rises in several places, adding a layer of haze to the murky colour scheme. Yellow bulldozers nose the heap and shift and level it; municipal rubbish trucks and flatbed trucks with skips arrive from all over the city and discharge their contents.
Between the dogs, the birds and the machines there was something else, something I could only slowly take in: 200 to 300 people, dressed in the same murky hues as the rubbish dump, backs bent, hooks in hand, were working on its surface.
Feeling queasy I walk towards the end of the bridge. In order to reach the steps and the rubbish, I must walk past three young men who are using the vantage point of the bridge for surveillance and information gathering. In an unspoken negotiation I don’t understand, they take in my camera, and my shoulder bag containing digital recorders and money, and let me pass. This silent confrontation, between the comforts of my world and the difficulties of theirs, only further develops my anxieties.
Descending the steps, I walk to the edge of the dump where I am met by the site supervisor and his aides. They want a stamped authorisation of my visit from the relevant municipal department. What looks like a vast area, open to the surrounding countryside, is as closed to me as a Korean petrochemical plant. I turn back and head into the city to secure the relevant authorisation.
TRASH TALKS
The city dump is an inventory, of a kind, of its material life. Addis in rubbish is not London or Moscow in rubbish. Rubbish provides a crude and deeply flawed account of cities and their social, political and economic contexts. Rubbish displays social, material and income differences.
Indeed, some people’s rubbish provides others with the fabric of their everyday life. Maybe this is the best way to think about Koshe – as a redistribution centre which indexes the differences between people’s life-journeys, refracted through material cultures at their point of disposal.
Not just the content, the handling of rubbish displays cities too. How cities deal with their rubbish reveals them. It is a major challenge for municipal authorities in Addis, who are only able to deal with two-thirds of the rubbish, distributed in collection points all over a city that is fast expanding – leaving the rest to private contractors and the age-old informal dumping practices on streets and in rivers. Thus rubbish provides a visual commentary on urban citizens’ behaviour as well as the efficacy of municipal governance.
SCRATCHING A LIVING
Getting myself into the rubbish is a story of municipal offices cluttered with old computers, fans, desks, officials and permissions. It is about writing a letter in Amharic explaining what I want to do and why. It is about waiting until the electricity comes back on and we can photocopy my university ID. There are phone calls to the landfill site and arrangements are made. Everybody is charming. I’ve come from London to take a look at the rubbish. Why? I am following a piece of plastic around the world. Really! First world problems!
I go back to Koshe – which means ‘dirty’ in Amharic – and hand over the necessary papers to the site supervisor, in his makeshift office at the roadside of the dump. Minutes later, I am scrambling after him, out on to the rubbish heap, navigating around the dogs which I fear, and the areas where it is soft underfoot and I sink up to my knees. My stomach is churning with fear. My interpreter and I are using Olbas oil to mask the smell.
– – – – – –
– – – – – –
We stop north of the main road, where it is firmer underfoot, in the area where the activity is concentrated. This is the place to which the municipal authorities and the site supervisor direct the trucks to dump their loads. A single white towelling slipper, with the Hilton Hotel logo on it, stands out in the grey-brown mush.
This area is a hive of activity that peaks to a frenetic pace with the arrival of new loads, and then falls away, leaving a more continuous stream of slower activity, and a legacy of dust and smoke that gets in everyone’s eyes.
As rubbish trucks turn off the main road on to the edge of the site, a group of five or six young men jump on the back and ride to the dumping area with it. This puts them at an advantage for grabbing the best items as the truck discharges its load onto the tip, but not without risk. The mechanism that crushes the rubbish occasionally catches a young man in its deadly and disfiguring grasp.
As the young men jump off with the rubbish and begin picking items that catch the eye, the line of men and women, that has formed along both sides of the truck, spring into action, grabbing items and stashing them in woven plastic sacks. These are held tightly in one hand; in the other a homemade metal hook with a white handle, used to grab and dig into the grey-brown surface of the heap, is held. This hooked instrument earns the pickers – sometimes referred to as scavengers – the name ‘scratchers’.
The moment of discharge unleashes a tense scramble for the most valuable items; a competition in which masculine physical strength prevails, and young, agile, women put up a good fight. Scratchers then go on searching, or rest until the next truck arrives, or regroup around the bulldozers unearthing new bounty. The social and material relationships of the dump demand skilled navigation.
From the vantage point of the dump, the scratchers rework the geographies and hierarchies of the city. The tensest flurries of competitive scratching accompany the arrival of trucks from the most affluent areas, with the best rubbish. The Bole area, with its upscale detached housing, mall, hotels and the international airport, sends the most prized items, the cast-offs of affluence, including waste airline food in large green plastic bags, to the dump. Scratchers collect the food discarded by airline passengers for themselves, leaving a large pool of bright green plastic bags, which attracts a herd of goats.
Rubbish from the central part of the city, from international hotels, the African Union HQ buildings and the embassies, is similarly sought after, and monopolised by the fittest young men. Scratchers recognise the sources of rubbish from the colours and types of trucks used by the different sub-cities and private contractors. And they recognise the drivers and their helpers, who regularly work the same areas. The discarded traces of the city’s more affluent lives, especially foreign residents and visitors, most animate the dump. Rubbish logs social inequalities in cities and provides a minimal redress.
The dump has temporal rhythms. Scratchers know what time the trucks arrive from different parts of the city. From 8am through the morning is the busiest time. The dump is geared to municipal collection and transportation. By 5pm things are dying down as the trucks stop for the night, and the scratching continues with fewer scratchers at a slower pace. Bulldozers moving stuff around and digging into the surface of the dump also provide new scratching opportunities, and a lively crowd gathers around them. Scratching is a 24-hour activity, with people arriving after their working day is over. Some scratchers work throughout the night wearing torches attached to headbands. Scratching it seems is a (stigmatised) way of life as much as a way of getting by.
Within the urban geographies of affluence, materials establish another set of hierarchies. Scratchers search for anything they can use for themselves, or resell. Materials have a value in recycling, providing an afterlife for discarded objects. Metals, including nails, are the most valuable booty, and men dominate this, although a few women have ventured into metals too. Wood has value as firewood. Tourist clothes and shoes can be cashed in at the Mercato salvage section. Some scratchers just come to eat.
But plastics are the most ubiquitous material on the dump, and among plastics, water bottles the scratchers refer to as ‘highland’, after a popular brand of bottled water, dominate, and in this niche women prevail.
Scratchers specialise in particular materials. Specialisms result from advice from experienced scratchers, from serendipity, or from knowledge of shifting recycling prices, gathered at the edge of the dump. Here materials are counted or weighed, and turned into cash, with the agents from factories using recycled materials.
A pile of white dusty material arrives from the leather factory. The dogs take up residence. They are ejected by a group of men, who have decided that this is a good place to sit, while waiting for the next truck.
In their working clothes – they scrub up outside of work and look completely different – scratchers are dressed similarly and grimily, making them the same colour as the rubbish heap. Men wear trousers, shirts and tee shirts, baseball caps and sometimes hoodies to protect their heads from the sun. Women wear scarves and baseball caps, skirts, trousers, t-shirts and blouses. Some carry infants on their backs. All wear sturdy shoes, often trainers.
The scratching population numbers 200–300, but expands after holidays with casual pickers. More women than men do it by a ratio of about three to one, and, while people in their 20s and 30s predominate, ages range from teens to seniors. Most live in the villages around the dump in simple, rusted, corrugated iron dwellings, sometimes with satellite dishes. Rubbish has provided a source of local employment and subsistence for generations over its 50-year history, and is firmly embedded in local calculations of subsistence and accumulation.
About 50 scratchers live in cardboard and plastic makeshift shelters off the edge of the dump, safely away from passing vehicles and next to a pen full of pigs. The rubbish sustains rural arrivals, for whom it works as a gateway to the city, as well as long-term residents, whose rural routes have settled into the past, making them locals.
The ministry and its field agents say that the rubbish dump is a source of dangerous working practices by people who, like the rubbish they sort, are consigned to live beyond the limits of civic life. A litany of accidents, deaths and disfigurements as scratchers take risks to recover value, are recited by the site supervisor:
“Food comes from some place and a guy is going into the truck and he is injured and they take him to hospital but he died. Also someone else lost their legs in an encounter with a bulldozer. Two months ago a man who jumped in the truck dropped off when it broke. In recent accidents, two were women. The bulldozer operator has a lot to do to push the garbage. If they see something they want when the bulldozer moves the garbage, they don’t think about their life.”
In living beyond formal systems of governance, this city suburb of rubbish is more like the Somali borderlands, patrolled by contrabandists and gunrunners, than a part of the city. There is a police station nearby, and policing and the justice system are slowly taking back the dump from a parallel system of authority, a mafia of five ‘big men’. The big men control access by scratchers in exchange for fees, making themselves wealthy in the process. But recently, some of them have been imprisoned, shifting the balance of power towards the authorities.
Once far away, a place outside of the city, outside systems of formal employment, taxation, law and municipal governance, Koshe is now on the edge of a city that has grown to meet it in what are fast becoming its upscale southern suburbs. A new development of large detached houses nearby anticipates this future – new housing for those in a position to benefit from rising prosperity, and a consequent shrinkage and rehabilitation of the landfill site. These changes have far-reaching consequences for the scratchers of Koshe.
– – – – – NOTE: The above article was first published on The Guardian Newspaper under the title “Inside Addis Ababa’s Koshe Rubbish Tip Where Hundreds Literally Scratch a Living”. It is an extract from the new book Flip-Flop: A Journey Through Globalisation’s Backroads by Caroline Knowles. (Pluto Press, £18.99).
Saudi Star Agricultural Development plans to pump $100 million into a rice export project in Gambella region of Ethiopia despite allegations of human rights violations surrounding the “villagization” program under which the land has been taken from indigenous Anuak pastoralists to lease to foreign investors.
The company is owned by Mohamed al-Amoudi, who was born in Ethiopia to a Saudi father and an Ethiopian mother. Al-Amoudi made a fortune from construction contracts to build Saudi Arabia’s national underground oil storage complex. Now a billionaire many times over, al-Amoudi has invested heavily in Ethiopia where he owns a gold mine and a majority stake in the national oil company.
Al-Amoudi was one of the first to invest in a new scheme under which president Meles Zenawi offered to lease four million hectares of agricultural land to foreign investors and his company was also one of the first to become the subject of controversy. After Saudi Star was awarded a 10,000 hectare (24,700 acres) lease in 2008, a dozen aggrieved Anuak villagers attacked Saudi Star’s compound in Gambella in 2010 and killed several employees.
Saudi Star abandoned work at the time but this past November the company announced that it would return to invest millions to grow rice using new large-scale flood irrigation techniques. Saudi Star hopes to sell its produce to Saudi Arabia under King Abdullah’s Food Security Program.
“We know we’re creating job opportunities, transforming skills, training local indigenous Anuak,” Jemal Ahmed, Saudi Star CEO told Bloomberg. “The government wants the project to be a success and see more Gambella people able to work and produce more, that’s the big hope.”
But activists say that Saudi Star’s newly invigorated project in Gambella is likely to have a detrimental impact on the local population, notably pastoralist groups like the Anuak as well as the Nuer.
“Sadly, right now, the Anuak, nearly all small subsistence farmers, are becoming refugees in their own land as they are internally displaced from indigenous land their ancestors have possessed for centuries,” Obang Metho, Executive Director of Solidarity Movement for a New Ethiopia, told the Africa Congress on Effective Cooperation for a Green Africa.
“They have become ‘discardable’ by a regime that wants their land, but not for them, in order to lease it to foreigners and regime-cronies for commercial farms,” he added.
All told as many as 1.5 million subsistence farmers are expected to be offered voluntary relocation to new settlements where the government has told them that they will be given housing, social services and support infrastructure under the villagization program.
However, activists like Human Rights Watch and the Oakland Institute say that the relocation process has been plagued by violence and broken promises.
Instead of getting housing, villagers are forced to build their own tukols – traditional huts – and risk beatings if they speak out, says Human Rights Watch, which conducted interviews of 100 residents during the first round of villagization that occurred in 2010.
The majority of resettlements did not have a school, health clinic or even water wells, says the Oakland Institute. Lack of agricultural assistance such as seeds, fertilizers, tools and trainings, have further exacerbated the risk of hunger and starvation among families.
The traditional pastoralist communities also say that they are having a hard time adapting to sedentary farming practices in the new settlements. “We want you to be clear the government brought us here…to die…right here,” an Anuak elder in Abobo district told Human Rights Watch. “They brought us no food, they gave away our land to foreigners so we can’t even move back. On all sides the land is given away, so we will die here in one place.”
‘Poverty is not merely going hungry; it means lack of resources like land or education to make out a living; means lack of employment; means lack of access to some basic needs of life like health services, education, food etc., means lack of voice to be heard and ability to influence the formulation of policies or implementation of programs by the government.
Poverty may also be understood as an aspect of unequal social status and inequitable social relationships, experienced as social exclusion, dependency, and diminished capacity to participate, or to develop meaningful connections with other people in society. This is of considerable relevance to the Indian situation. …Dominant sections of ethnicity in the society controls the political conditions and assets, depriving the marginalized from having access to these economic assets. ‘
Definition : Poverty is a situation where the individual or community lack the resources, ability to meet the basic needs of life.
Relative Poverty: Refers to lacking a usual or socially acceptable level of resources or income as compared with others within a society or country.
Penury : Extreme poverty.
Absolute Poverty: is destitution wherein one lacks basic human needs including clean water, food, clothing, shelter, health cover and education.
The World Bank defines poverty in absolute terms. According to them, the poverty is classified into:
Extreme Poverty : Living on less than US $1.25 per day
Moderate Poverty : Living on less than US $2 a day
Building on colonial rule’s multilayered identities of first-, second-, and third-class citizens, newly independent African countries regarded ethnolinguistic diversities entrenched in divergent political opinion as detrimental to unity and contrary to the nation-building project. They sought to dilute them in various systems of common-identity, single-nation projects and one-party systems. The failure to accommodate multiple community identities constitutes a critical challenge that poses severe threats to lasting peace, stability, and development, with particular importance in fragile and conflict-affected contexts.
The combination of local mistrust in the current government and the opportunity for material gain present a recipe for violent conflict. Just as colonial powers developed systems focused on extracting resources from the continent to fund their own empires, local elites often use the profits from natural resources on the continent for their own ends. At the heart of the resource curse are issues of democratic governance. Without accountable institutions, the wealth from natural resources corrupts elites and thwarts democratic governance. – http://www.ipinst.org/media/pdf/publications/ipi_e_pub_effective_governance_in_challenging_environments.pdf
The “Africa rising” narrative has gained traction in recent years. But who, exactly, is rising? While statistics point to a continent whose fortunes have improved, many African citizens remain at the margins of socioeconomic development. Citizens’ uprisings in North Africa and in Burkina Faso provide a fresh reminder of the danger in touting impressive economic growth statistics while the majority of a
country’s population remains excluded from democratic governance processes and development.
It is also widely believed that development failures and governance deficits lie “at the heart of
Africa’s violent conflicts.”
According to the report Africa will only live up to the “rising” narrative if it can strengthen its systems of governance, promote inclusive development, and embed a culture of democracy and peace. It examines the obstacles to effective governance in challenging environments—from identity crises to poor natural resource management. A growing youth bulge and the widespread marginalization of young people, enduring underdevelopment, and persistent inequalities are among the social and economic challenges that are negatively impacting efforts to improve governance.
The report argues that Recent reverses in peace and security across Africa illustrate the persistent gaps that exist between the aspirational norms of democratic governance and their implementation. Yet, in the face of these setbacks, policy responses tend to focus on the violent symptoms of insecurity rather
than addressing one of the primary root causes of these conflicts: poor governance. To overcome this ambivalent record, Africa needs a unified strategy to address the continent’s governance challenges and advance long-term peace and stability. Effective, inclusive, and accountable governance; visionary leadership; and solid democratic institutions are critical to ensuring Africa reaches its potential in ever challenging environments. Thus, restoring and strengthening governance in fragile and conflictaffected
contexts calls for a new social contract built on accountability and inclusiveness—of institutions, politics, economic growth, natural resource management, and the delivery of public services. This new social contract, which is an essential prerequisite to Africa’s transformation, has the potential to facilitate the kind of socioeconomic development and responsive, inclusive politics that leads to an enabling environment for sustainable peace and stability.
Exploring African responses to these challenges, the authors outline progress and setbacks in developing frameworks for effective governance and strengthening institutions at regional, national, and local levels. They offer a number of recommendations for the African Union, its member states, and others to enhance democracy, bridge the divide between governance standards and performance, and promote effective governance from the ground up. Read @ http://www.ipinst.org/media/pdf/publications/ipi_e_pub_effective_governance_in_challenging_environments.pdf
It is not often you hear a Vice President of the World Bank calling for revolution, but Oby Ezekweseli did just that at the Royal African Society’s Annual Lecture last week.
There is an unwritten rule among politicians globally that they do not rubbish their rulers when they are abroad, but Oby – who would not describe herself as a politician – did not hold back.
We should have guessed how fired up she was when the former minister in President Obasanjo’s government in Nigeria and World Bank Vice President set the title: “Africa Rising? What will happen when her citizens arise?” You can watch her presentation here
She traced the lack of participation by the vast majority of Africans in their own development over the past 50 years which has left 70 – 80% of them absolutely poor. She blamed the “parasitic” African elites, not just for looting their countries, but for preventing any of the benefits of economic growth reaching their people. Her own country, Nigeria, is very rich but has some of the worst human development figures in the world.
She also pointed out that external actors, the aid donors, the World Bank and the IMF who drove the structural adjustment economic reforms of the 1990s and 2000s and left African citizens with no part to play in making the national choices for development. These reforms were necessary, she said, but “externals cannot give development to any country or any people… The ownership of the process by African citizens has been the missing link.”
Dismissing the current crop of African rulers, she expressed her pride in the people of Burkina Faso for the uprising that ejected President Blaise Compaoré
, who ruled there for 27 years. The leaders “absolutely don’t care” about their own citizens, she said, but spend their time among the global elite “all of whom have each other’s’ phone numbers”.
The next stage of development, said Oby, can only be done with the participation of the people, “no external force can do that…The change you have been waiting for will not come from the elite class waking up and having an epiphany. The change has to be made by the people. They are the only ones who can.”
And she urged the African diaspora to return to Africa and lead the struggle, a remark that created a moment of awkwardness in the room I noticed.
But I am sure you will agree this was an inspiring, energising message: People of Africa, you are citizens, not slaves. Rise up and demand what is yours and remove the people who have stolen it from you. Could the removal of Compaoré
by mass demonstrations followed by the refusal to accept an interim military ruler be the beginning of an Africa-wide trend as a 21st Century generation comes of age? It is not the usual message that you hear from African ministers or the World Bank.
But there is an anomaly here. If Oby is right then the most democratic countries with the most widespread political participation would be the most prosperous. And the most equal in terms of sharing the national cake. But this is not so.
Put aside the oil and mineral-rich countries in Africa, and, as Oby pointed out, you find that the fastest growers are those with stability and strong institutions such as effective ministries that deliver health and education to their people. In turn these attract aid and investment. These countries are Rwanda, Ethiopia, Uganda, Mozambique and Tanzania.
But what else do they have in common? Ethiopia and Rwanda are top-down dictatorships ruled by parties that fought their way to power and have ruled since 1991 and 1994 respectively. They deliver health and education to their people but they do not allow freedom of speech or association. Their media are tightly controlled. Uganda is a less powerful dictatorship but President Yoweri Museveni also came to power through the barrel of a gun in 1986 and his army has controlled the country ever since. The ‘Walk to Work’ mass movement in 2011, which complained about lack of services and high prices, was brutally suppressed.
Museveni was forced by aid donors to open up politics and he now has to put up with a rumbustious parliament and a moderately free press. A grumpy population, especially in the capital, might vote for someone else if they were sure that someone was allowed to run in a fair election. That is unlikely. At election times the state, including the police and the army, is an extension of the ruling party.
Mozambique and Tanzania are still run by the parties that led those countries at independence. Both will soon become exceedingly rich because of oil and gas; God-given resources that are profoundly anti-democratic. Oil-rich countries do not need to raise taxes from their people, they mainline millions from oil companies straight into the treasury. So whoever is in power when those revenues begin to flow may stay there for decades. There is still some democratic space in these countries and there are real national debates with opposition parties in both of them, although it is unlikely that an opposition party could win without provoking violent reactions from the ruling parties.
So is benign dictatorship the best Africans can hope for? There are certain advantages – stability and consistency. The downside is that it is dangerous to think or speak out so there is no national debate. Meanwhile new generations emerge – especially in Africa where birth rates are high – and dictators become out of touch. If the new generation follow Oby Ezekwesili’s call, Africa will remain exceedingly interesting and exciting and should also become prosperous and powerful.
See more @ http://africanarguments.org/2014/12/11/citizens-of-africa-arise-you-have-nothing-to-lose-but-your-chains-says-oby-ezekwesili-by-richard-dowden/
An info-graphic that shows how the industrial food system contributes to the climate crisis and how food sovereignty is the solution.
1.Take care of the soil
2. Natural farming, no chemicals
3. Cut the food miles & the Corporations, and focus on fresh food
4. Forget the false solutions, focus on what works
5. Get the land back to the farmers, and stop the mega plantation
Insurance for Ethiopian herders aims to combat drought, conflict – TRFN
YABELO, Ethiopia, Dec 5 (Thomson Reuters Foundation) – Nomadic livestock herders in Ethiopia have received their first payout from an insurance scheme that tracks poor pasture conditions with satellite technology.
Ethiopia has difficulty drawing full advantage from its livestock resources – the largest in Africa – because of the unreliability of pasture and water caused by persistent drought.
The new insurance scheme, known as index-based livestock insurance, aims to reduce losses, support pastoral communities, and lower the risk of conflict sparked by pastoralists migrating into agricultural areas in search of forage or water.
Coverage has been sold since July 2012 in southern Ethiopia’s Borena zone by Oromia Insurance Company (OIC), with technical assistance from the International Livestock Research Institute (ILRI), U.S.-based Cornell University, and Mercy Corps, an international development organisation. Just over 500 pastoralists took up coverage initially.
The scheme was based on an earlier insurance effort rolled out in 2010 in neighbouring Marsabit region in northern Kenya, said Andrew Mude, principal economist at ILRI in Nairobi.
There, payouts were based on livestock deaths. But “the (experience) we had with the Kenyan programme was that some animals are more hardy than others, and so (with) differential mortality rates … (it) was a bit complex,” Mude said.
The insurance offered by OIC in Ethiopia instead offers coverage based on the actual scarcity of the herders’ forage, rather than the mortality rate of their livestock.
HOW IT WORKS
The insurance uses NASA satellite data to look at forage availability in the Borena zone. Experts from ILRI and Cornell University compare current images with historical data from the past 30 years.
“We provide the technical expertise to understand how to use the information from satellites on the state of forage on the ground,” Mude said.
The timing and amount of insurance payouts are then calculated based on the severity of the lack of forage.
OIC’s insurance will pay out up to 6,000 Ethiopian birr ($300) for a cow, 10,000 birr ($500) for a camel, and 800 birr ($40) for a sheep or goat annually. Pastoralists pay premiums averaging about 7.5 percent of the value of the maximum payout.
If forage levels become scarce compared to the index based on the historical satellite data, the herder receives compensation, even if no livestock have been lost.
In response to poor forage conditions, OIC made its first payout to all the insured holders, totalling 570,000 birr ($28,300), at the beginning of November this year at a ceremony in Yabelo, a town 565 km (353 miles) south of the capital, Addis Ababa.
Mude said that although livestock is the key productive asset and source of income for pastoralists, the novelty of insurance in this remote region initially made it difficult to sell.
ILRI spent two years researching the needs of the Borena zone herders before formally launching the insurance.
A further challenge is how to assess the damage suffered by policyholders when dealing with a mobile population.
Mude explained that an important feature of the insurance is that pastoralists remain covered even if they migrate out of the woredas (districts) where they are insured, since migration itself implies that there is a severe lack of forage. Compensation is therefore calculated based on the area where they were initially insured.
Wondimu Beteyo, a pastoralist who received a payout for his cattle and goats, says that until recently he had to trek several days for pasture and water. Now, he says, the money he has received will allow him to replenish the cattle he lost during the recent drought.
Dono Kotelo, from Teltale woreda, insured his two goats and two cattle for a total of 1,048 birr ($50) after learning about the insurance scheme. Although none of his animals died, because he migrated to find pasture, he received a payout of 192 birr ($10) for costs associated with the dry season and said he plans to buy insurance again for the coming year.
LOWERING CONFLICT RISK?
Getaneh Eerena, a livestock insurance officer at the micro-insurance department of OIC, said that in the long run the programme is not just about financial payments but about avoiding conflicts.
“The area tends to have high conflict incidence, both within (the) pastoralist community and against agricultural communities,” Eerena said.
Kotelo, the herder, said his Borena community used to cross into the land of agricultural communities when their own pastures were exhausted, often leading to deadly clashes.
Mude and Eerena said their organisations planned to extend the insurance scheme eventually across the country.
Is H&M turning a blind eye to land grabs in Ethiopia? TV4 does an investigation into H&M’s cotton sourcing from Ethiopia and discovers the disturbing truth.
” The benefits of trade have been well documented throughout history. The economic case is quite straightforward. Opening up to trade allows countries to shift their patterns of production, exporting goods that they are relatively efficient at producing and importing goods at a lower price that they can’t produce resourcefully at home. This lets resources to be allocated more efficiently allowing a nation’s economy to grow. Fruits of trade can be seen in many countries. In the last 30 years, trade has grown around 7% per year on average (WTO, 2013). During this time period, developing nations have seen their share in world export increase from 34% to 47% (WTO, 2013) which at first glance seem incredible. However if we dig a little deeper, it is quickly apparent that China is the key reason for the majority of the growth and that a bulk of these developing countries aren’t benefiting fully from international trade. Why is this? Many developing countries depend on the export of a few primary products and in some cases a single primary commodity for the majority of their export earnings. In fact, 95 of the 141 developing countries rely of the export of commodities for at least 50% of their export income (Brown, 2008). This is where the problem starts. Prices in the primary good’s market tend to be highly volatile sometimes varying up to 50% in a single year (South Centre, 2005). Often, the fluctuation of these products are out of the hands of the developing countries as they individually have only a small portion of the world supply which is not enough to affect world prices. At the same time, some shocks (ie. Weather) are unpredictable. The unstable commodity price brings uncertainty, instability and often negative economic consequences for the developing countries. This also affects the policymaking in the country as it is hard to implement a sustainable development scheme or a fiscal expansionary policy with uncertain revenue. Positive shocks do increase income in the short run however a study by Dehn (2000) found that there are no permanent effect on the increase on income in the long run. Furthermore, there is often very little scope to growth through primary products as it is very hard to increase volumes of sale. This is due to the demand being inelastic. The over dependence on the export of primary products also causes another problem – a risk of a large trade deficit. Several studies (Olukoshi, 1989, Mundell, 1989) have shown that primary commodity prices are the main cause for the debt problems in many developing countries. In an empirical research done by Swaray (2005), he shows the main reason behind this is the deteriorating terms of trade, developing countries face. Terms of Trade is equal to the value of export over the value of import. Over time there has been a general trend of primary products falling in value. 41 of 46 leading commodities fell in real value over the last 30 years with an average decline of 47% in real prices, according to the World Bank (cited in CFC, 2005). This has occurs due to inelastic demand for commodities and lack of differentiation among producers hence making it a competitive market. The creation of synthetic substitutes has also suppressed prices. At the same time, manufacturing products (which generally developing countries tend to import) see a general rise in prices. Put these trends together, over time, developing countries have seen their terms of trade worsen. A study by CFC (2005), shows that the terms of trade have declined as much as 20% since the 1980s. This, alongside the difficulty to increase volumes of sales has meant many developing countries have a trade deficit. According Bhagwati (1958), it is possible that this decline in the terms of trade could result in diminished welfare. In other words, growth from trade can be negative rather than positive. ”
The benefits of trade have been well documented throughout history. The economic case is quite straightforward. Opening up to trade allows countries to shift their patterns of production, exporting goods that they are relatively efficient at producing and importing goods at a lower price that they can’t produce resourcefully at home. This lets resources to be allocated more efficiently allowing a nation’s economy to grow. Fruits of trade can be seen in many countries. In the last 30 years, trade has grown around 7% per year on average (WTO, 2013). During this time period, developing nations have seen their share in world export increase from 34% to 47% (WTO, 2013) which at first glance seem incredible. However if we dig a little deeper, it is quickly apparent that China is the key reason for the majority of the growth and that a bulk of these developing countries aren’t benefiting fully…
The paradox, however, and one of the reasons why despite having so little land, small producers are feeding the planet, is that small farms are often more productive than large ones. If the yields achieved by Kenya’s small farmers were matched by the country’s large-scale operations, the country’s agricultural output would double. In Central America, the region’s food production would triple. If Russia’s big farms were as productive as its small ones, output would increase by a factor of six. Another reason why small farms are the feeding the planet is because they prioritise food production. They tend to focus on local and national markets and their own families. In fact, much of what they produce doesn’t enter into trade statistics – but it does reach those who need it most: the rural and urban poor. If the current processes of land concentration continue, then no matter how hard-working, efficient and productive they are, small farmers will simply not be able to carry on. The data show that the concentration of farmland in fewer and fewer hands is directly related to the increasing number of people going hungry every day. – http://www.grain.org/article/entries/5072-telling-family-farming-fairy-tales
The United Nations declared 2014 as the International Year of Family Farming. As part of the celebrations, the U.N. Food and Agriculture Organisation (FAO) released its annual “State of Food and Agriculture”, which this year is dedicated to family farming. Family farmers, FAO say, manage 70-80 percent of the world’s farmland and produce 80 percent of the world’s food.
But on the ground – whether in Kenya, Brazil, China or Spain – rural people are being marginalised and threatened, displaced, beaten and even killed by a variety of powerful actors who want their land.
Farmer Djeneba Diarra on her farm in Heremakono, Mali (Photo: Joe Penney/Reuters)
A recent comprehensive survey by GRAIN, examining data from around the world, finds that while small farmers feed the world, they are doing so with just 24 percent of the world’s farmland – or 17 percent if you leave out China and India. GRAIN’s report also shows that this meagre share is shrinking fast.How, then, can FAO claim that family farms occupy 70 to 80 percent of the world’s farmland? In the same report, FAO claims that only 1 percent of all farms in the world are larger than 50 hectares, and that these few farms control 65 percent of the world’s farmland, a figure much more in line with GRAIN’s findings.
The confusion stems from the way FAO deal with the concept of family farming, which they roughly define as any farm managed by an individual or a household. (They admit there is no precise definition. Various countries, like Mali, have their own.)
Thus, a huge industrial soya bean farm in rural Argentina, whose family owners live in Buenos Aires, is included in FAO’s count of “family farms”. What about sprawling Hacienda Luisita, owned by the powerful Cojuanco family in the Philippines and epicentre of the country’s battle for agrarian reform since decades. Is that a family farm?
Looking at ownership to determine what is and is not a family farm masks all the inequities, injustices and struggles that peasants and other small scale food producers across the world are mired in.
It allows FAO to paint a rosy picture and conveniently ignore perhaps the most crucial factor affecting the capacity of small farmers to produce food: lack of access to land. Instead, the FAO focuses its message on how family farmers should innovate and be more productive.
Small food producers’ access to land is shrinking due a range of forces. One is that because of population pressure, farms are getting divided up amongst family members. Another is the vertiginous expansion of monoculture plantations.
In the last 50 years, a staggering 140 million hectares – the size of almost all the farmland in India — has been taken over by four industrial crops: soya bean, oil palm, rapeseed and sugar cane. And this trend is accelerating.
In the next few decades, experts predict that the global area planted to oil palm willdouble, while the soybean area will grow by a third.These crops don’t feed people. They are grown to feed the agroindustrial complex.
Other pressures pushing small food producers off their land include the runaway plague of large-scale land grabs by corporate interests. In the last few years alone, according to the World Bank, some 60 million hectares of fertile farmland have been leased, on a long-term basis, to foreign investors and local elites, mostly in the global South.
While some of this is for energy production, a big part of it is to produce food commodities for the global market, instead of family farming.
SMALL WORKS BETTER
The paradox, however, and one of the reasons why despite having so little land, small producers are feeding the planet, is that small farms are often more productive than large ones.
If the yields achieved by Kenya’s small farmers were matched by the country’s large-scale operations, the country’s agricultural output would double. In Central America, the region’s food production would triple. If Russia’s big farms were as productive as its small ones, output would increase by a factor of six.
Another reason why small farms are the feeding the planet is because they prioritise food production. They tend to focus on local and national markets and their own families. In fact, much of what they produce doesn’t enter into trade statistics – but it does reach those who need it most: the rural and urban poor.
If the current processes of land concentration continue, then no matter how hard-working, efficient and productive they are, small farmers will simply not be able to carry on. The data show that the concentration of farmland in fewer and fewer hands is directly related to the increasing number of people going hungry every day.
According to one U.N. study, active policies supporting small producers and agro-ecological farming methods could double global food production in a decade and enable small farmers to continue to produce and utilise biodiversity, maintain ecosystems and local economies, while multiplying and strengthening meaningful work opportunities and social cohesion in rural areas.
Agrarian reforms can and should be the springboard to moving in this direction.
Experts and development agencies are constantly saying that we need to double food production in the coming decades. To achieve that, they usually recommend a combination of trade and investment liberalisation plus new technologies.
But this will only empower corporate interests and create more inequality. The real solution is to turn control and resources over to small producers themselves and enact agricultural policies to support them.
The message is clear. We need to urgently put land back in the hands of small farmers and make the struggle for genuine and comprehensive agrarian reform central to the fight for better food systems worldwide.
FAO’s lip service to family farming just confuses the matter and avoids putting the real issues on the table.
Read more @ http://www.grain.org/article/entries/5072-telling-family-farming-fairy-tales
They tell us that poverty has been cut in half in the last fifteen years or so, but independent watchdogs have repeatedly shown that this claim rests on statistical sleight-of-hand. Moreover, it relies on a poverty line of $1.25 a day, which no longer has any credibility. A more realistic line of $2.50 – the absolute minimum for achieving normal human life expectancy – shows that 3.1bn people remain in poverty today, which is 352m more people than in 1981, according to a 2008 study. And all the while, the wealth ratio between the richest and poorest countries has grown from 44:1 in 1973 to nearly 80:1 today (according to my estimation). The richest 85 people in the world (Mr Gates being one of them) now have more wealth than the poorest 3.5 billion, or half the world’s population. The aid project is failing because it misses the point about poverty. It assumes that poverty is a natural phenomenon, disconnected from the rich world, and that poor people and countries just need a little bit of charity to help them out. People are smarter than that. They know that poverty is a feature of the global economic system that it is very often caused by people, including some of the people who run or profit from the aid agenda. People have become increasingly aware – particularly since the 2008 crash – that poverty is created by rules that rig the economy in the interests of the rich. – http://www.aljazeera.com/indepth/opinion/2014/11/death-international-developmen-2014111991426652285.html
The death of international development
The development industry needs an overhaul of strategy, not a change of language.
By Jason Hickel*
International development is dying; people just don’t buy it anymore. The West has been engaged in the project for more than six decades now, but the number of poor people in the world is growing, not shrinking, and inequality between rich and poor continues to widen instead of narrow. People know this, and they are abandoning the official story of development in droves. They no longer believe that foreign aid is some kind of silver bullet, that donating to charities will solve anything, or that Bono and Bill Gates can save the world.
This crisis of confidence has become so acute that the development community is scrambling to respond. The Gates Foundation recently spearheaded a process called the Narrative Project with some of the world’s biggest NGOs – Oxfam, Save the Children, One, etc. – in a last-ditch attempt to turn the tide of defection. They commissioned research to figure out what people thought about development, and their findings revealed a sea change in public attitudes. People are no longer moved by depictions of the poor as pitiable, voiceless “others” who need to be rescued by heroic white people – a racist narrative that has lost all its former currency; rather, they have come to see poverty as a matter of injustice.
These findings clearly demonstrate that people are beginning to reject the aid-centric approach to development. But instead of taking this as an opportunity to face up to their failures and change the way the industry works, the Gates Foundation and its partner NGOs have decided to stick with business as usual – but to cloak it with fresh language.
Leaked internal documents make it clear that the Narrative Project is nothing more than a PR campaign – a bid to “change public attitudes” by rolling out fresh language that will be more effective at securing public support and donations. The strategy goes like this: Talk about the poor as “equals” who share our values; emphasise that development is a “partnership”; stop casting rich people and celebrities as saviours of the poor; and above all, play up the idea of “self-reliance” and “independence”, with special attention to empowering women and girls. Progressive Westerners love this stuff.
This new framing amounts to little more than a propaganda strategy. Instead of changing their actual approach to development, the Narrative Project just wants to make people think they’re changing it. In the end, the existing aid paradigm remains intact, and the real problems remain unaddressed.
A failing project
Why do people no longer believe in the charity and aid-centric model of development? According to the Narrative Project, it’s because they’re all a bit stupid. They let their personal beliefs override the “facts”. They’re “old” and “conservative”. And they’re too calloused to care about social causes. It doesn’t occur to the development industry that people might have good reasons for their scepticism. And there are many.
For one, the aid project is in fact failing. There have been some achievements, to be sure, but the Gates Foundation and official sources like the UN want the public to believe that these piecemeal gains are tantamount to overall success. They tell us that poverty has been cut in half in the last fifteen years or so, but independent watchdogs have repeatedly shown that this claim rests on statistical sleight-of-hand. Moreover, it relies on a poverty line of $1.25 a day, which no longer has any credibility. A more realistic line of $2.50 – the absolute minimum for achieving normal human life expectancy – shows that 3.1bn people remain in poverty today, which is 352m more people than in 1981, according to a 2008 study.
And all the while, the wealth ratio between the richest and poorest countries has grown from 44:1 in 1973 to nearly 80:1 today (according to my estimation). The richest 85 people in the world (Mr Gates being one of them) now have more wealth than the poorest 3.5 billion, or half the world’s population.
The aid project is failing because it misses the point about poverty. It assumes that poverty is a natural phenomenon, disconnected from the rich world, and that poor people and countries just need a little bit of charity to help them out. People are smarter than that. They know that poverty is a feature of the global economic system that it is very often caused by people, including some of the people who run or profit from the aid agenda. People have become increasingly aware – particularly since the 2008 crash – that poverty is created by rules that rig the economy in the interests of the rich.
A system of plunder
We can trace this rigging process through history. The programmes that global South countries used successfully to build their economies and reduce poverty after the end of colonialism – trade tariffs, subsidies, social spending on healthcare and education – were in many cases actively destroyed by Western intervention in the name of “development”. Western-backed coups in Iran in 1953, Guatemala in 1954, Congo in 1961, Brazil in 1964, Indonesia in 1965, Chile in 1973 – to name just a few – deposed democratically elected leaders with pro-poor platforms to install dictators friendly to multinational corporations. Most of these dictators received billions of dollars in “aid” from Western governments.
When coups fell out of favour with the voting public, the World Bank and the IMF stepped in instead. They leveraged debts to impose crushing “structural adjustment” programmes on poor countries, forcing them to privatise public assets, open their markets to Western goods, cut social spending and reduce wages, and give foreign companies access to extra cheap labour and raw materials. Structural adjustment was one of the greatest single causes of poverty in the global South in the 20th century, and it continues to this day under the guise of “austerity” .
These destructive policies only persist because voting power in the World Bank and the IMF is controlled by rich countries. High-income countries control more than 60 percent of the voting power at the World Bank, but are home to less than 15 percent of the world’s population.
Right now, developing countries lose as much as $900bn each year to tax evasion by multinational companies through trade mispricing, and almost the same sum again through transfer pricing. They lose another $600bn each year in debt service to mostly firslt world banks. These losses alone amount to nearly 20 times more than the total flow of aid, which is a paltry $135bn – and that’s not counting land grabs and other forms of resource theft.
All of this makes it clear that poverty is not a natural condition. It is a state of plunder. It is delusional to believe that charity and aid are meaningful solutions to this kind of problem.
Some people in the NGO community know this all too well, and they are calling for genuine political change: The democratisation of the World Bank and the IMF, fairer trade rules, and an end to tax evasion. But because the leadership at the Gates Foundation and some NGOs find these issues inconvenient such alternative voices are being side-lined in favour of a disingenuous attempt to “fix” public attitudes by pushing ever harder on the same old charity and aid story.
If the Gates Foundation and NGO leadership want to get serious about tackling poverty, they might start by talking to the public about the importance of releasing developing countries from the siphons of rich countries and their corporations. They might help put the final nails in the coffin of the paternalistic story of charity and aid, white saviours and poor brown victims, and tell the real story about how the rich get richer off the backs of the poor. That would be a true starting point for development in the 21st century.
*Dr Jason Hickel lectures at the London School of Economics and serves as an adviser to /The Rules.
Martin Kirk, Global Campaigns Director of /The Rules, contributed to the analysis for this article.
Read more @ http://www.aljazeera.com/indepth/opinion/2014/11/death-international-developmen-2014111991426652285.html
African presidents ‘use China aid for patronage politics’
Most of the $80bn of development funds sent to Africa went to areas where national leaders were born rather than the most needy, says AidData report
African leaders are almost three times more likely to spend Chinese development aid in areas where they have ethnic ties, casting doubt on the humanitarian effectiveness of Beijing’s strict “hands-off” policy in the continent.
China says it spends more than half of its foreign aid in 51 African countries, and AidData, an open-source data centre, says Beijing sent more than $80bn in “pledged, initiated, and completed projects” between 2000 and 2012. Most of that aid went to areas where national leaders were born, indicating a strong political bias, AidData said.
“As soon as [a region] becomes the birthplace of an African president this region gets 270% more development assistance (from China) than it would get if it were not the birth region of the president,” said Roland Hodler, professor of economics at the University of St Gallen in Switzerland and co-author of a report, Aid on Demand: African Leaders and the Geography of China’s Foreign Assistance, published in conjunction with the database.
Ghana, the Democratic Republic of the Congo and Ethiopia received the most Chinese development assistance over the reporting period, the study showed.
China is sending development funds to African governments with the aim of buying long-term political alliances, Hodler said. Sierra Leone’s president, Ernest Bai Koroma, recently used Chinese aid to build a school in Yoni, his hometown, according to the report.
“To us, this suggests that the Chinese principle of non-interference in domestic affairs allows African presidents to use Chinese aid for patronage politics. I am sure the Chinese are aware of this, and I would argue that they accept it because they care more about having a president who is sympathetic to them than about the poor,” said Hodler.
But the study also noted that, contrary to popular belief, Chinese aid to Africa is not strongly tied to countries that host Beijing’s oil and mining operations. “We do not find a strong pattern that Chinese aid only goes to regions where there’s a lot of natural resources. The picture that they only go after natural resources is not really confirmed by our sub-national level analysis,” Hodler said.
Deborah Brautigam, director of the China Africa Research Initiative at John Hopkins University, said: “Most Chinese finance in Africa is not official aid, but business-related export credits borrowed by governments to finance infrastructure projects of various kinds. If these governments want to channel projects to their home town, Chinese banks would have no objection.
“For official aid, which is heavily diplomatic, the Chinese government looks beyond any sitting African leader to all the leaders to come, and to public opinion more generally. This is why they use their official aid for big, visible projects like stadiums, ministry buildings, and airports that can be seen and used by many people – in the capital city – and not tucked away in a rural hamlet.”
Researchers took data that China published on its foreign assistance and mapped where development projects were located. “The Chinese tend to send more aid to countries that are somewhat poorer but within these countries they go for the relatively rich regions,” said Hodler.
China maintains that it sends aid to African governments with the aim of furthering their development agendas.
The Chinese government said in July: “When providing foreign assistance, China adheres to the principles of not imposing any political conditions, not interfering in the internal affairs of the recipient countries and fully respecting their right to independently choosing their own paths and models of development. The basic principles China upholds in providing foreign assistance are mutual respect, equality, keeping promise[s], mutual benefits and win-win.”
• This article was amended on 21 November 2014 to clarify that the $80bn figure for aid to Africa between 2000 and 2012 was an estimate by AidData, not an official Chinese government figure, and that the estimate includes “pledged, initiated, and completed projects”.
Read more @ http://www.theguardian.com/global-development/2014/nov/19/african-presidents-china-aid-patronage-politics
Rome Declaration on #Nutrition, endorsed by over 170 countries, enshrines everyone’s right to have access to safe, sufficient and nutritious #food and commits governments to preventing malnutrition in all its forms, including hunger, micronutrient deficiencies and obesity.
The second International Conference on Nutrition (ICN2) endorsed a political outcome document, the Rome Declaration on Nutrition and an accompanying technical Framework for Action to guide its implementation. The Declaration commits countries to eradicate hunger and prevent all forms of malnutrition worldwide – particularly undernutrition in children, anaemia in women and children, among other micronutrient deficiencies – as well as reverse the trend in obesity. It aims to do this by increasing investments in food systems to improve people’s diets and nutrition. The Framework proposes the creation of an enabling environment for effective action and for strengthening sustainable food systems, including through investments in pro-poor agriculture and smallholder agriculture to improve diets and raise levels of nutrition; nutrition education and information; social protection; strengthened health systems for addressing specific conditions; improved water, sanitation and hygiene; and improved food safety.
Mr. Chairman and members of the committee, thank you for providing me the opportunity to speak today about the human rights situation in Ethiopia.
The other panelists have articulated some of the critical issues that are facing Ethiopia ahead of the May 2015 elections. I would like to elaborate on human rights concerns associated with Ethiopia’s many development challenges.
Ethiopia is the one of the largest recipients of development assistance in the world, including more than $800 million in 2014 from the US government. Many of Ethiopia’s 94 million people live in extreme poverty, and poverty reduction is rightly one of both the US and Ethiopian government’s core goals. Improving economic and human development is fundamental to ensuring that Ethiopians are able to enjoy their rights to health care, education, shelter, food and water, and Ethiopia’s government, civil society, international donors and private investors all have important roles contributing to the realization of these rights.
But sustainable development also requires a commitment to the full range of human rights, not just higher incomes, access to education and health care, but the ability for people to express their views freely, participate in public policy decision-making, join associations of their choice, have recourse to a fair and accessible justice system, and live free of abuse and discrimination.
Moreover, development that is not rooted in respect for human rights can be counter-productive, associated with abusive practices and further impoverishment of people already living in situations of extreme poverty. In Ethiopia, over the past few years Human Rights Watch has documented disturbing cases where international donors providing development assistance are turning a blind eye to government practices that fail to respect the rights of all beneficiaries. Instead of improving life in local communities, these projects are proving harmful to them. And given the repression of independent voices, media and associations, there are no realistic mechanisms for many local communities to express their views to their government. Instead, those who object or critique the government’s approach to development projects face the prospect of intimidation, harassment and even serious abuse.
In 2011 in Ethiopia’s western region, Gambella, Human Rights Watch documented such abuses during the implementation of the first year of the government’s “villagization” program. Gambella is a region populated by indigenous groups who have suffered from political marginalization and lack of development for decades. In theory the villagization program aimed to address some of these concerns. This program required all indigenous households in the region to move from their widely separated homes into larger villages – ostensibly to provide improved basic services including much-needed schools, health clinics and roads.
I was in Gambella for several weeks in 2011 and travelled to 16 different villages in five different districts. I met with people who had not yet moved from their homes and others who had been resettled. I interviewed dozens of people who said they did not wish to move but were forced by the government, by police, and by Ethiopia’s army if necessary. People described widespread human rights violations, including forced displacement, arbitrary arrest and detention, beatings, and rape and other sexual violence. Thousands of villagers fled into neighboring countries where they became refugees. At the same time, in the new villages, many of the promised services were not available and the food security situation was dire.
The villagization program has also been implemented in other marginalized regions in Ethiopia. These regions are the same areas where government is leasing large pieces of land to foreign investors, often from India, China and the Gulf states, without meaningful consultation with local communities, without any compensation being paid to local communities, and with no benefits for local communities other than low-paying labor jobs on the plantations.
In the Omo valley in southern Ethiopia, Human Rights Watch found that the combination of sugar and cotton plantations and hydroelectric development is causing the displacement of up to 200,000 indigenous people from their lands. Massive amounts of water are being used for these projects which will have devastating impacts for Lake Turkana across the border in Kenya and the 300,000 indigenous people who live in the vicinity of the lake and depend upon it. The displacement of communities in the Omo valley is well underway. As in Gambella, communities in the Omo valley told Human Rights Watch about coercion, beatings, arrests and threats from military and police to force people to move to new settlements.
Human Rights Watch also found politically motivated abuse in development programs. In 2010, we documented discrimination and “political capture” in the distribution of the benefits of development programs especially prior to the 2010 elections. Opposition party supporters and others who did not support the ruling party were denied access to some of resources provided by donor-funded programs, including food aid, micro credit, seeds, fertilizers, and other critical agricultural inputs needed for food security, and even employment opportunities. Schools, funded as part of education programs by the US and other development partners, were used to indoctrinate school children in ruling party ideology and teachers were required to report youth perceived to support the opposition to the local authorities. These government practices, many of which continue today, show the intense pressure put on Ethiopian citizens to support the ruling party, and the way in which development aid is manipulated to discriminate against certain communities.
All of these cases have several common features. First, the Ethiopian government routinely denies the allegations without investigation, claiming they are politically motivated, while simultaneously restricting access for independent media and investigators. Second, these programs are directly and indirectly funded by Western donors, who seem unwilling to acknowledge, much less address human rights concerns in Ethiopia.
Monitoring and evaluation of these programs for human rights abuses is inadequate. Even when donors carry out assessments to look into the allegations, as has happened in Gambella, they are not conducted rigorously and do not ensure victims of abuses can speak freely and safely. In the current environment in Ethiopia, it is essential for anyone seeking to investigate human rights violations to go to locations where victims can speak openly, to understand the dynamics of the local communities, and recognize the depths of the fear they are experiencing.
All of these problems are exacerbated by the ongoing government crackdown on the media and civil society. The independent press has been ravaged since the 2010 election, with the vast majority of journalists terrified to report anything that is remotely critical of the government. In October I was in a country neighboring Ethiopia where over 30 journalists have fled in the past few months alone. I spoke to many of them: their papers were closed, their families were threatened, and many had been charged under repressive laws merely because they criticized and questioned the Ethiopian government’s policies on development and other issues. I spoke with someone who was forced to seek asylum abroad because he had questioned in writing whether the development of Africa’s largest dam on the Nile River was the best use of money in a country where poverty is pervasive.
As for Ethiopian civil society, it has been decimated by another law, the Charities and Societies Proclamation. It has made obtaining foreign funding nearly impossible for groups working on human rights, good governance, and advocacy. Leading members of the human rights movement have been forced to flee abroad.
Some people take to the streets to peacefully protest. Throughout 2014 there were various protests throughout Ethiopia. In many of these protests, including during the student protests in the Oromia region in April and May of this year, the security forces used excessive force, including the use of live ammunition against the students. We don’t even know how many Oromo students are still detained because the government publicizes no information, there is no comprehensive human rights monitoring and reporting, and family members are terrified of reporting the cases. Members of the Muslim community who organized protests in 2012 against what they saw as government interference in religious affairs have also paid an enormous price for those demonstrations, with many beaten or arrested and most of the protest organizers now imprisoned on terrorism charges.
Finally, bringing about change through the ballot box is not really an option. Given that 99.6 percent of the parliamentary seats in the 2010 election went to the ruling party and that the political space has shrunk dramatically since then, there is little in the way of a viable opposition that can raise questions about government policy, including development plans, or other sensitive topics.
This situation leaves Ethiopians no real means to express concerns over the policies and development strategies imposed by the government. They either accept it, they face threats and imprisonment for speaking out, or they flee their country as thousands have done. The refugee communities in countries neighboring Ethiopia are full of individuals who have tried to raise concerns in all of these ways, and are now in exile.
To conclude, we all recognize that Ethiopia needs and requires development. The problem is how development is being undertaken. Development projects need to respect the rights of the local communities and improve their quality of life, regardless of ethnicity or political perspective. The United States and Ethiopia’s other major partners can and should play a leading role in supporting sustainable, rights-respecting development. The US should not accept arguments that protecting human rights is in contradiction to development goals and implementation.
In 2014, the appropriations bill required the US to scrutinize and suspend funding for development programs in Ethiopia that might contribute to forced evictions in Ethiopia, including in Gambella and Omo. This was an important signal that the abuses taking place were unacceptable, and this should be maintained in the upcoming FY15 appropriations bill, whether it is a stand-alone bill or a continuing resolution.
As one of Ethiopia’s key partners and supporters of Ethiopia’s development, the US needs to do more to ensure it is rigorously monitoring and consistently responding to human rights abuses in Ethiopia, both bilaterally and multilaterally. The US should be pressing the Ethiopian government to ensure that there is genuine consultation on development initiatives with affected communities, that more robust monitoring is put in place to monitor for potential abuses within programs, and that independent civil society, both domestic and foreign, are able to monitor and report on rights abuses. Respect for human rights is first and foremost a concern of all Ethiopians, but it is also central to all US interests in Ethiopia, from security to good governance to sustainable development.
WITNESS LIST:
Soleyana S.Gebremichale, Co-founder, Zone NineBloggersRobert Herman, Vice President of Regional Programming, Freedom HouseSusan Valentine, Africa Program Coordinator, Committee to Protect Journalists
Felix Horne, Ethiopia Researcher, Human Rights Watch
Joshua Klemm, International Rivers
Read more @ http://www.hrw.org/news/2014/11/17/tom-lantos-human-rights-commission-hearing-human-rights-dilemmas-ethiopia
The Guardian reports that African NGOs received just 4% of Bill Gates’ money for agriculture work, with 75% for US organisations.
MDG : Agriculture in Africa : Farmers break cocoa pods in Ghana
Most of the $3bn (£1.8bn) that the Bill & Melinda Gates Foundation has given to benefit hungry people in the world’s poorest countries has been spent in the US, Britain and other rich countries, with only around 10% spent in Africa, new research suggests.
Analysis of grants made by the foundation shows that nearly half the money awarded over the past decade went to global agriculture research networks, as well as organisations including the World Bank and UN agencies, and groups that work in Africa to promote hi-tech farming.
The other $1.5bn went to hundreds of research and development organisations across the world, according to Grain, a research group based in Barcelona. “Here, over 80% of the grants were given to organisations in the US and Europe, and only 10% to groups in Africa. By far the main recipient country is the US, followed by the UK, Germany and the Netherlands,” it says in a report published on Tuesday.
Of the $678m given to universities and national research centres, 79% went to the US and Europe, and only 12% to Africa.
“The north-south divide is most shocking, however, when we look at the $669m given to non-government groups for agriculture work. Africa-based groups received just 4%. Over 75% went to organisations based in the US,” says the report.
“When we examined the foundation’s grants database, we were amazed that they seem to want to fight hunger in the south by giving money to organisations in the north. The bulk of its grants for agriculture are given to organisations in the US and Europe,” said agronomist Henk Hobbelink, a co-founder of Grain.
“It also appeared that they’re not listening to farmers, despite their claims. The overwhelming majority of its funding goes to hi-tech scientific outfits, not to supporting the solutions that the farmers themselves are developing on the ground. Africa’s farmers are cast as recipients, mere consumers of knowledge and technology from others.”
The private foundation – one of the world’s largest with an endowment of more than $38bn from Bill Gates, and which supports the Guardian’s Global development website – has emerged in under a decade as one of the major donors to agricultural research and development and the largest single funder of research into genetic engineering. In 2006-07, it spent $500m on agricultural projects and it has maintained funding at around this level since. The vast majority of the foundation’s grants focus on Africa.
It aims to enhance healthcare and reduce extreme poverty but its agriculture work has been criticised for being fixated on the work of scientists in centralised labs and ignoring the knowledge and biodiversity that Africa’s smallholder farmers have developed over generations.
The single biggest recipient of Gates foundation agricultural grants is the CGIAR consortium of 15 international agricultural research centres.
“In the 1960s and 70s, these centres were responsible for the development and spread of a controversial ‘green revolution’ model of agriculture in parts of Asia and Latin America which focused on the mass distribution of a few varieties of seeds that could produce high yields – with the generous application of chemical fertilisers and pesticides,” says the report.
“Efforts to implement the same model in Africa failed and, globally, CGIAR lost relevance as corporations like Syngenta and Monsanto have taken control over seed markets. Money from the Gates foundation is now providing CGIAR and its green revolution model with a new lease of life, this time in direct partnership with seed and pesticide companies.”
The centres have received more than $720m from Gates since 2003. During the same period, another $678m went to universities and national research centres – more than three-quarters of them in the US and Europe – for research and development of specific technologies, such as crop varieties and breeding techniques.
Advertisement
Britain has been the Gates foundation’s second largest recipient, receiving 25 grants worth $156m since 2003. In the US, where universities and research groups have been awarded $880m, Cornell University has received $90m – more than all other countries except the US, UK and Germany.
“We could find no evidence of any support from the Gates foundation for programmes of research or technology development carried out by farmers or based on farmers’ knowledge, despite the multitude of such initiatives that exist across the continent and the fact that African farmers continue to supply an estimated 90% of the seed used on the continent,” says the report. “The foundation has elected consistently to put its money into top-down structures of knowledge generation and flow, where farmers are mere recipients of the technologies developed in labs and sold to them by companies.”
Grain suggests that the foundation uses its money to indirectly impose a policy agenda on African governments. “The Gates foundation set up the Alliance for a Green Revolution in Africa (Agra) in 2006 and has supported it with $414m since then. It holds two seats on the alliance’s board and describes it as the African face and voice for our work,” it says.
Read more @ http://www.theguardian.com/global-development/2014/nov/04/bill-melinda-gates-foundation-grants-usa-uk-africa
It’s been called by some to be a new form of colonialism. Others say it is outright theft. Land grabs in the developing world create a system so unequal that resource-rich countries become resource dependent. In Ethiopia, one of the world’s largest recipients of foreign aid, the problem is particularly acute. In a country where over 30% of the population (pdf) is below the food poverty line, crops are exported abroad—primarily to India, Saudi Arabia and the Gulf Cooperation Council (GCC) states. http://qz.com/275489/in-ethiopia-foreign-investment-is-a-fancy-word-for-stealing-land/
In Ethiopia, foreign investment is a fancy word for stealing land
By Daniel A. Madina
Since 2000, over 37 million hectares of land, mainly in the world’s poorest nations, have been acquired by foreign investors “without the free, prior, and informed consent of communities” in what, according to Oxfam and other organizations, constitutes a “land grab.” It’s a portion of land twice the size of Germany, according to researchers.
More than 60% of crops grown on land bought by foreign investors in developing countries are intended for export, instead of for feeding local communities. Worse still, two-thirds of these agricultural land deals are in countries with serious hunger problems. A report by the University of Virginia in collaboration with the Polytechnic University of Milan says that a third to a fourth (pdf, p. 1) of the global malnourished population, or 300 to 550 million people, could be fed from the global share of land grabs.
Instead, the land is used to grow profitable crops—like sugarcane, palm oil, and soy. The benefits of this food production “go to the investors and to the countries that are receiving the exports, and not to the benefit of local communities,” says Paolo D’Odorico, professor of environmental sciences at the University of Virginia. He attributes the phenomenon to a global “commodification of land” and says the problem will only get worse in the coming years as food prices continue to rise globally.
Land grabs in the developing world create a system so unequal that resource-rich countries become resource dependent.
In Ethiopia, one of the world’s largest recipients of foreign aid, the problem is particularly acute. In a country where over 30% of the population (pdf) is below the food poverty line, crops are exported abroad—primarily to India, Saudi Arabia and the Gulf Cooperation Council (GCC) states.
Multinationals buy up the land from the Ethiopian government for lease and bring in workers to farm it.
Favorable climate conditions and government relief have led Ethiopia to be chosen as a new production site by many flower growers present in Kenya. Bangalore-based Karuturi Global, the world’s largest rose exporter, has rose plantations in the country, and is planning the development of a 300,000-hectare lease in the Gambella area.
Alfredo Bini, an Italian photojournalist, examined Ethiopian land grabs in his recently released photo series, “Land Grabbing.” For the investors, Bini explains, the deals were not “land grabs” but opportunities to get huge returns on investments.
As Birinder Singh, the executive director of Karuturi in Ethiopia, plainly states in his interview with Bini: “When someone calls it ‘land grab,’ we call it ‘land development.’”
“These companies—mostly Saudi and Indian—are signing deals with the Ethiopian government to lease this land… for 25, 30, sometimes 50 years, depriving local populations of the ability to harvest their crops and feed themselves,” Bini told Quartz. “The government says the lands are empty and not being harvested but from what I saw and documented in my reporting this is entirely not the case.”
Farming women walk along a bank to reach their plot in the Agula region of Tigray. The average size of plots cultivated by the local farmers is no more than 0.6 hectares, hardly sufficient to guarantee sustenance for typical, large Ethiopian families.(Alfredo Bini/Cosmos)
Burning forest around the Karuturi facility, in the Gambella region of Ethiopia, to allow access to bulldozers preparing the ground for oil palm and sugar cane plantations. The area is near a national park where the second largest animal migration in Africa occurs. Karuturi claims they have preserved the free movement of animals through corridors of intact forest.(Alfredo Bini/Cosmos)
A school in Arabhara, a village near the Kebena River, between the town of Amibara and the Aledeghi natural reserve. This area is included in the government-owned Metahara Sugar Factory’s 20,000 hectare expansion plan. The native Afar herders have declared they are ready for an armed revolt rather than accepting their villages being moved.(Alfredo Bini/Cosmos)
The planting of sugar cane cuttings in Awash near Amibara and the Aledeghi natural reserve. This area is included in the government-owned Metahara Sugar Factory’s expansion plan, aimed at boosting sugar and biofuel production.(Alfredo Bini/Cosmos)
A rose growing in one of the greenhouses springing up around Holeta. Favorable climate conditions and government relief have led to Holeta being chosen as a new production site by many flower growers present in Kenya, including Karuturi.(Alfredo Bini/Cosmos)
Once cut, the roses are taken to the stocking and shipping area where they are packed and readied for the daily shipments to Holland.(Alfredo Bini/Cosmos)
Executive director Birinder Singh in the Ethiopian offices in Addis Ababa for Bangalore-based Karuturi.(Alfredo Bini/Cosmos)
Read more @http://qz.com/275489/in-ethiopia-foreign-investment-is-a-fancy-word-for-stealing-land/
The ‘hidden hunger’ due to micronutrient deficiency does not produce hunger as we know it. You might not feel it in the belly, but it strikes at the core of your health and vitality.
– International Food Policy Research Institute
Ethiopia and its Hidden Hunger in the Shadows of Fastest Economic Growth Hype
Ethiopia is making the 7th worst country (marked alarming) in Global Hunger Index (GHI) 2014. It is the 70th of the 76 with GHI score of 24.4 and Proportion of undernourished in the population (%) 37.1. http://www.ifpri.org/tools/2014-ghi-map
The 10 worst countries in 2014 GHI Score are: Ethiopia, Chad, Sudan/South Sudan, East Timor-Leste, Comoros, Eritrea, Burundi, Haiti, Zambia and Yemen.
According to the IFPRS report 2014 which was released on 13th October, more than 2 billion people worldwide suffer from hidden hunger, more than double the 805 million people who do not have enough calories to eat (FAO, IFAD, and WFP 2014). Much of Africa South of the Sahara and South Asian subcontinent are hotspots where the prevalence of hidden hunger is high. The rate are relatively low in Latin America and the Caribbean where diets rely less on single staples and are more affected by widespread deployment of micronutrient interventions, nutrition education, and basic health services.
Definitions:
Hunger: distress related to lack of food
Malnutrition: an abnormal physiological condition, typically due to eating the wrong amount and/or kinds of foods; encompasses undernutrition and overnutrition
Undernutrition: deficiencies in energy, protein, and/or micronutrients Causes include poor diet, disease, or increased micronutrient needs not met during pregnancy and lactation
Undernourishment: chronic calorie deficiency, with consumption of less than 1,800 kilocalories a day, the minimum most people need to live a healthy, productive life
Overnutrition: excess intake of energy or micronutrients
Micronutrient deficiency (also known as hidden hunger): a form
of undernutrition that occurs when intake or absorption of vitamins and minerals is too low to sustain good health and development in children and normal physical and mental function in adults
Undernourishment: chronic calorie deficiency, with consumption of less than 1,800 kilocalories a day, the minimum most people need to live a healthy, productive life
Overnutrition: excess intake of energy or micronutrients
The absolute number of hungry people—which takes into account both progress against hunger and population growth—fell in most regions. The exceptions were Sub-Saharan Africa, North Africa, and West Asia.
The 2014 FAO’s report which is published in September indicates that while Sub-Saharan Africa is the worst of all regions in prevalence of undernourishment and food insecurity, Ethiopia (ranking no.1) is the worst of all African countries as 32 .9 million people are suffering from chronic undernourishment and food insecurity. Which means Ethiopia has one of the highest levels of food insecurity in the world, in which more than 35% of its total population is chronically undernourished.
FAO in its key findings reports that: overall, the results confirm that developing countries have made significant progress in improving food security and nutrition, but that progress has been uneven across both regions and food security dimensions. Food availability remains a major element of food insecurity in the poorer regions of the world, notably sub-Saharan Africa and parts of Southern Asia, where progress has been relatively limited. Access to food has improved fast and significantly in countries that have experienced rapid overall economic progress, notably in Eastern and South-Eastern Asia.Access has also improved in Southern Asia and Latin America, but only in countries with adequate safety nets and other forms of social protection. By contrast, access is still a challenge in Sub Saharan Africa, where income growth has been sluggish, poverty rates have remained high and rural infrastructure remains limited and has often deteriorated.
According to the new report, many developing countries have made significant progress in improving food security and nutrition, but this progress has been uneven across both regions and dimensions of food security. Large challenges remain in the area of food utilization. Despite considerable improvements over the last two decades, stunting, underweight and micronutrient deficiencies remain stubbornly high, even where availability and access no longer pose problems. At the same time, access to food remains an important challenge for many developing countries, even if significant progress has been made over the last two decades, due to income growth and poverty reduction in many countries.Food availability has also improved considerably over the past two decades, with more food available than ever and international food price volatility before. This increase is reflected in the improved adequacy of dietary energy and higher average supplies of protein. Of the four dimensions, the least progress has been made in stability, reflecting the effects of growing political instability.Overall, the analyses reveal positive trends, but it also masks important divergences across various sub- regions. The two sub- regions that have made the least headway are sub-Saharan Africa and Southern Asia, with almost all indicators still pointing to low levels of food security.On the other hand, Eastern (including South Eastern) Asia and Latin America have made the most progress in improving food security, with Eastern Asia experiencing rapid progress on all four dimensions over the past two decades.The greatest food security challenges overall remain in sub-Saharan Africa, which has seen particularly slow progress in improving access to food, with sluggish income growth, high poverty rates and poor infrastructure, which hampers physical and distributional access. Food availability remains low, even though energy and protein supplies have improved. Food utilization remains a major concern, as indicated by the high anthropometric prevalence of stunted and underweight children under five years of age. Limited progress has been made in improving access to safe drinking-water and providing adequate sanitation facilities, while the region continues to face challenges in improving dietary quality and diversity, particularly for the poor. The stability of food supplies has deteriorated, mainly owing to political instability, war and civil strife.
Prevalence of undernourishment in Africa/ #Ethiopia
Summary of Africa Scorecard on Number of People in State of Undernourishment / Hunger Country Name and Number of People in State of Undernourishment / Hunger (2012-2014, Millions):-
1st Ethiopia ( 32.9 million)
2nd Tanzania (17.0)
3 Nigeria (11.2)
4 Kenya (10.8)
5 Uganda (9.7)
6 Mozambique (7.2)
7 Zambia (7.0)
8 Madagascar (7.0)
9 Chad (4.5)
10 Zimbabwe (4.5)
11 Rwanda (4.0)
12 Angola (3.9)
13 Malawi (3.6)
14 Burkina Faso (3.5)
15 Ivory Coast (3.0)
16 Senegal (2.4)
17 Cameroon (2.3)
18 Guinea (2.1)
19 Algeria (2.1)
20 Niger 2.0
21 Central Africa Republic (1.7)
22 Sierra Leone (1.6)
23 Morocco (1.5)
24 Benin (1.0)
25 Togo (1.0)
26 Namibia (.9)
27 Botswana (.05)
28 Guinea Bissau (.03)
29 Swaziland (.03)
30 Djibouti (.02)
31. Lesotho (.02)
Data for South Africa, Sao Tome and Principal, Gabon, Ghana, Mali, Tunisia, Mauritius and Egypt indicate that Prevalence of undernourishment is insignificant or under .01 million. There are no reported data for some countries such as Libya, Sudan, Eritrea, Somalia, Burundi and Gambia.
Read more @ The State of Food Insecurity in the World Strengthening the enabling environment for food security and nutritionhttp://www.fao.org/3/a-i4030e.pdf
In the context of weak land governance and insecure land tenure (estimates suggest that per cent of rural land in Africa is registered), there is a serious risk that mega-PPPs will lead to the dispossession or expropriation of local communities in the name of investment.
Inequality is already significant in Africa. Measurements such as the Gini-coefficient show that inequality on the continent is second only to Latin America in its severity. Land transfers to investors threaten to worsen this inequality by creating ‘agricultural dualism’ between large and small farms. This process will remove already diminishing plots of land from family farmers; while the co-existence of large and small farms has been shown to drive inequality and conflict in other contexts.Also, equitable agricultural development requires diverse forms of support to account for ‘different rural worlds’, including contract oversight for commercial producers, the development of local markets for poorer farmers, and job-creation and social protection for marginal groups.
Mega-PPP projects are unlikely to deliver this type of agenda, instead focussing on wealthier, more ‘commercially viable’ farmers and bigger, politically well-connected companies.
Not So Mega?
The risky business of large-scale PPPs in African agriculture
By Robin Willoughby, Food and Climate Justice policy adviser at Oxfam GB and leader of Oxfam International’s agricultural investment policy work.
At a large summit on the future of African agriculture last week, the buzzwords were ‘investment opportunities’, ‘transformation’ and ‘public-private partnerships.’
Despite the worthy aims of the hosts ‘A Green Revolution for Africa (AGRA)’, discussion of poverty, rights, gender or inequality was rather absent from the plenary.
The risks of large scale public-private partnership (mega-PPPs) are enormous, particularly in the areas targeted for investment. Huge land transfers are a core component of the mega-PPP agenda.
Mega-PPP projects are focussing less on the needs of poor small-scale farmers and more on wealthier, more ‘commercially viable’ farmers and bigger, politically well-connected companies.
Last week, I attended a large summit on the future of African agriculture in Addis Ababa, hosted by A Green Revolution for Africa (AGRA).
My participation really made me reflect on the problems of ‘groupthink’ within these types of conference, with each of the participants taking it in turns to stand on the podium and agree with one another more and more vociferously. The buzzwords were ‘investment opportunities’, ‘transformation’ and ‘public-private partnerships.’
This narrative is to be expected at a private sector agri-investment conference – but seems confusing when this type of meet-up is designed by philanthropic organisations to address rural poverty and the widespread challenges in African farming. Despite the worthy aims of AGRA, discussion of poverty, rights, gender or inequality was almost entirely absent from the plenary.
As one of the other participants said to me: “if everything is going so well – why are we all here?”
At the summit, I launched an Oxfam Briefing Paper on large-scale public-private partnerships initiatives, which echoes some of these themes.
The report points out that despite the large amount of hype around mega-PPPs such as the New Alliance for Food Security and Nutrition, GROW Africa, and numerous growth corridor initiatives – there is very little robust evidence on the proposed benefits of these arrangements, around who bears the risks or who holds the power in decision making.
So where do the risks and benefits lie?
The paper shows that public-private partnerships can play an important role in supporting farmers. For example, smaller-scale initiatives such as micro-credit, weather-index insurance and attempts to link farmers into markets offer useful examples of PPPs – particularly when they are co-designed with end-users and local communities.
Oxfam’s work with consumer goods company Unilever in a targeted partnership called Project Sunrise shows that well-designed partnerships can also be used for innovation and learning.
But the risks of mega-PPPs are enormous, particularly in the areas targeted for investment.
Threats to land rights Land transfers are a core component of the mega-PPP agenda. The total amount of land pegged for investment within just five countries hosting growth corridor initiatives (Tanzania, Mozambique, Malawi, Ghana and Burkina Faso) stands at over 750,000 km² – the size of a country such as France or Ukraine.
Not all of this land will be leased to investors, but the initial offering in these countries stands at 12,500 km² (over 1.2 million hectares) – the amount of land currently in agricultural production in Senegal or Zambia.
In the context of weak land governance and insecure land tenure (estimates suggest that per cent of rural land in Africa is registered), there is a serious risk that mega-PPPs will lead to the dispossession or expropriation of local communities in the name of investment.
The pricing of land can also be set at extraordinarily low levels. The GROW Africa initiative advertised land for lease in Mozambique for $1 per hectare per annum over 50 years. This is around 2,000 times cheaper than comparable land in Brazil – raising concerns that African governments are seriously undervaluing their core assets.
Worsening inequality Inequality is already significant in Africa. Measurements such as the Gini-coefficient show that inequality on the continent is second only to Latin America in its severity.
Land transfers to investors threaten to worsen this inequality by creating ‘agricultural dualism’ between large and small farms. This process will remove already diminishing plots of land from family farmers; while the co-existence of large and small farms has been shown to drive inequality and conflict in other contexts.
Also, equitable agricultural development requires diverse forms of support to account for ‘different rural worlds’, including contract oversight for commercial producers, the development of local markets for poorer farmers, and job-creation and social protection for marginal groups.
Mega-PPP projects are unlikely to deliver this type of agenda, instead focussing on wealthier, more ‘commercially viable’ farmers and bigger, politically well-connected companies.
Asymmetries of power Finally, for any form of large-scale public-private partnership to be effective, it requires effective governance to ensure a fair sharing of risks and benefits; and regulation to ensure that more powerful players do not use political and economic clout to capture a dominant position in the market.
These conditions of good governance do not exist, on the whole, in most African countries.
The asymmetries of power within these arrangements can be enormous. In the SAGCOT programme (a mega-PPP in Tanzania), four large seed and agrichemical companies involved in the initiative have combined annual revenues of nearly US$100 billion. That is more than triple the size of the Tanzanian economy.
This raises serious concerns that these companies could lobby for policies that are in their interest and squeeze out small- and medium size enterprise from burgeoning domestic markets.
What are the alternatives? Is there an alternative to the mega-PPP vision of agricultural development? I think so:
Public sector investment in research and development, extension services and targeted subsidies for credit can spread the benefits of agricultural investment widely and encourage private sector participation in the sector. Currently, governments in Sub-Saharan Africa only spend 5 per cent of their total annual budget on the sector, which is unforgivably low.
Securing land rights for local communities. This will help to ensure that communities within the target area for these schemes are not dispossessed in the name of investment. Secure land tenure also encourages smallholders to invest for themselves in land and productive activities.
Finally, alternative business models such as the development of producer organisations and the clever use of subsidies to encourage local processing facilities can develop agricultural markets without the need for ‘hub’ plantation farms or growth corridors. These models should be explored in more depth as part of a more inclusive PPP agenda.
With some US$6 billion of donor aid committed to further the aims of the New Alliance and $1.5 billion earmarked for growth corridor initiatives, mega-PPPs lead to a fundamental question. Would this money be better spent on lower risk models of agricultural development that give a greater share of the benefits to the poor?
BBC (4 September 2014) The ONE group says money lost because of corruption would otherwise be spent on school and medicine. An estimated $1tn (£600bn) a year is being taken out of poor countries and millions of lives are lost because of corruption, according to campaigners.A report by the anti-poverty organisation One says much of the progress made over the past two decades in tackling extreme poverty has been put at risk by corruption and crime.
Corrupt activities include the use of phantom firms and money laundering. The report blames corruption for 3.6 million deaths every year.
If action were taken to end secrecy that allows corruption to thrive – and if the recovered revenues were invested in health – the group calculates that many deaths could be prevented in low-income countries.
Corruption is overshadowing natural disasters and disease as the scourge of poor countries, the report says.
One describes its findings as a “trillion dollar scandal”.
“Corruption inhibits private investment, reduces economic growth, increases the cost of doing business and can lead to political instability,” the report says.
“But in developing countries, corruption is a killer. When governments are deprived of their own resources to invest in health care, food security or essential infrastructure, it costs lives and the biggest toll is on children.”
The report says that if corruption was eradicated in sub-Saharan Africa:
Education would be provided to an additional 10 million children per year
Money would be available to pay for an additional 500,000 primary school teachers
Antiretroviral drugs for more than 11 million people with HIV/Aids would be provided
One is urging G-20 leaders meeting in Australia in November to take various measures to tackle the problem including making information public about who owns companies and trusts to prevent them being used to launder money and conceal the identity of criminals.
It is advocating the introduction of mandatory reporting laws for the oil, gas and mining sectors so that countries’ natural resources “are not effectively stolen from the people living above them”.
It is recommending action against tax evaders “so that developing countries have the information they need to collect the taxes they are due” and more open government so that people can hold authorities accountable for the delivery of essential services.
September 2, 2014 (The baines report) — Poverty can easily be seen throughout the capital of Ethiopia, but nowhere is it more evident than when you pass a beggar on the street. Beggars are everywhere in Addis Ababa, and they represent a vast range of demographics. There are men, women, children of all ages and conditions– some with their mothers, some without, and the severely disabled.
Older children, rather than begging, try to sell you gum or clean your shoes, while the younger children walk in front of you asking for money or food, not leaving you until they spot another person to ask. The women are often with young children, sometimes babies, and usually with more than one. I was once walking down the street and a young child no older than 2 or 3 who was being held by his mother made the signal they all make to ask for food or money while calling me sister. I thought this child probably learned this signal before he even learned how to speak. Women are often seen grilling corn on the sidewalk on a small grill to sell to people passing by.
I have been told the severely disabled have most likely suffered from stunting, polio or the war. I have seen men with disfigured legs so mangled that they can not walk but instead drag themselves down the sidewalk. Others are in wheelchairs and unable to walk. And this city is not easy for the disabled. The sidewalks, where they exist, are not always flat and not always paved. There are also often giant holes in the middle of the sidewalk or loose concrete slabs covering gutters. On the main roads, near where I’m staying there are tarps and blankets off to the side of the road where the beggars must sleep or live.
It is a very difficult scene to walk through. You want to help them all and give everyone a little bit of money or food. But there are so many it would be nearly impossible to give to them all. We have been told to not give to beggars because once you give to one you will be surrounded by others. When people do give money to beggars it is often very small bills or coins that will not go very far.
I have often wondered how much money they actually receive. Perhaps it would be beneficial to do more in depth look at why these people became beggars and where they come from. After a cursory search for research and reports on beggars in Addis Ababa, I found very little. There is a study on the disabled beggars and a report focusing on children. There is a documentary that follows two women who come to the capital from a rural town and become beggars in order to raise money for their family when climate change creates a food shortage.
Both the government of Ethiopia and large NGO’s, like USAID and the UN, are working to stop the “cycle of poverty.” There are major health and nutrition projects being implemented all over the country, but these are long-term projects that do not address the immediate needs of people on the streets. Short term solutions such as creating shelters or centers for the disabled and homeless could allow beggars more opportunities for housing but could also generate income potential through workshops and other skill development programs.
‘Most of the time we simply do not know enough to assert accurate growth rates. There are also known biases and manipulations. Ethiopia, for example, is notable for having long-standing disagreements with the IMF regarding their growth rates. Whereas the official numbers have been quoted in double digits for the past decade, a thorough analysis suggested the actual growth rates were around 5 to 6 percent per annum. More generally, one study used satellite imaging of nighttime lights to calculate alternative growth rates, and found that authoritarian regimes overstate reported rates of growth by about 0.5 to 1.5 percentage points. Another recent study argues that inflation is systematically understated in African countries – which in turn means that growth and poverty reduction is overstated.’ http://africanarguments.org/2014/08/26/why-saying-seven-out-of-ten-fastest-growing-economies-are-in-africa-carries-no-real-meaning-by-morten-jerven/
Why saying ‘seven out of ten fastest growing economies are in Africa’ carries no real meaning
By Morten Jerven @ AfricanArguments
Before, during and after the US Africa summit one of the most frequently repeated factoids supporting the Africa Rising meme was that ‘seven out of ten fastest growing economies are in Africa.’ In reality this is both a far less accurate and much less impressive statistic than it sounds. More generally, narratives on African economic development tend to be loosely connected to facts, and instead are driven more by hype.
***
The ‘seven out of ten’ meme derives from a data exercise done in 2011 by The Economist. The exercise excluded countries with a population of less than 10 million and also the post-conflict booming Iraq and Afghanistan. This left 81 countries, 28 of them in Africa (more than 3 out of 10) and, if you take out the OECD countries from the sample, (which are unlikely to grow at more than 7 percent per annum), you find that every second economy in the sample is in Africa. It might not give the same rhetorical effect to say: ‘on average some African economies are expected to grow slightly faster than other non-OECD countries,’ but that would be more accurate.
And before we literally get ahead of ourselves (The Economist was reporting forecasts made for 2011 to 2015) there is a difference between forecasted and actually measured growth. According to John Kenneth Galbraith, the only function of economic forecasting is to make astrology look respectable. So how good is the IMF at forecasting growth in Low Income Countries?
According to their own evaluation, IMF forecasts “over-predicted GDP growth and under-predicted inflation.” Another study looked at the difference between the forecasts and the subsequent growth revisions in low income countries, and found that “output data revisions in low-income countries are, on average, larger than in other countries, and that they are much more optimistic.” Forecasts are systematically optimistic all over the world, but in Low Income Countries even more so.
***
Among those on the list of the fastest growers were countries like Nigeria, Ghana and Ethiopia. The news that both Nigerian and Ghanaian GDP doubled following the introduction of new benchmark years for estimating GDP in 2010 and 2014 should remind us that the pinpoint accuracy of these growth estimates is lacking. How confident should you be about a 7 percent growth rate when 50 percent of the economy is missing in the official baseline? Recent growth in countries with outdated base years is also overstated.
While Ghana has reportedly had the highest growth rates in the world over the past years, a peer review of the Ghana national accounts noted that “neither a national census of agriculture nor other surveys, such as a crop and live-stock survey, have been conducted…there is no survey to provide benchmark data for construction, domestic trade and services.” It was recently reported that an economic census is being planned for next year. What we do know is that Ghana (together with Zambia, another of the projected ‘top ten growers’) has returned to the IMF to seek assistance following their entry into international lending markets.
Most of the time we simply do not know enough to assert accurate growth rates. There are also known biases and manipulations. Ethiopia, for example, is notable for having long-standing disagreements with the IMF regarding their growth rates. Whereas the official numbers have been quoted in double digits for the past decade, a thorough analysis suggested the actual growth rates were around 5 to 6 percent per annum. More generally, one study used satellite imaging of nighttime lights to calculate alternative growth rates, and found that authoritarian regimes overstate reported rates of growth by about 0.5 to 1.5 percentage points. Another recent study argues that inflation is systematically understated in African countries – which in turn means that growth and poverty reduction is overstated.
***
Data bias is carried across from economic growth to other metrics. The pressure on scholars, journalists and other commentators to say something general about ‘Africa’ is relentless, and so the general rule is to oblige willingly. When talking about average trends in African politics and opinion, analysis is influence by the availability of survey data, such as Afrobarometer, and the data availability is biased. According to Kim Yi Donne, on The Washington Post’s ‘Monkey Cage’ blog, of the 15 African countries with the lowest Polity IV rankings, only seven have ever been included in the Afrobarometer, whereas all but one African country rated as a democracy by the same index is included.
Any quantitative study which says something about the relationship between growth and trends in inequality and poverty, relies on the availability of household survey data. One paper boldly stated that African Poverty is Falling…Much Faster than You Think! The data basis was very sparse and unevenly distributed. There were no data points for Angola, Congo, Comoros, Cape Verde, D.R. Congo, Eritrea, Equatorial Guinea, Seychelles, Togo, Sao Tome and Principe, Chad, Liberia, and Sudan. In addition, six countries only have one survey. The database included no observations since 2004 – so the trend in poverty was based entirely on conjecture. Famously you need at least two data points to draw a line. Yet the study included a graph of poverty lines in the Democratic Republic of Congo from 1970 to 2006 – based on zero data points.
A result of doubts about the accuracy of the official evidence, and a dearth of evidence on income distributions, scholars have turned to other measurements. Data on access to education and ownership of goods such as television sets from Demographic and Health Surveys were used to compile new asset indices. In turn, these data were used to proxy economic growth and in place of having a measure of the middle class. In both cases the data may paint a misleadingly positive picture. While claiming to describe all of Africa over the past two decades, these surveys are only available for some countries sometimes.
***
The statement ‘seven out of ten fastest growing economies are in Africa’ carries no real meaning. To utter it is merely stating that you subscribe to the hype. It is particularly frustrating, and it surely stands in way of objective evaluation, that the narratives in African Economic Development switches from one extreme to the other so swiftly. The truth lies somewhere between the ‘miracles’ and ‘tragedies’. It is nothing short of stunning that in a matter of 3-4 years the most famous phrase relating to African economies has turned from ‘Bottom Billion’ to ‘Africa Rising’.
Because of a lack of awareness on historical data on economic growth it was long claimed that Africa was suffering “a chronic failure of growth”, but growth is not new to the African economies, growth has been recurring. There is no doubt that there are more goods leaving and entering the African continent today than fifteen years ago. More roads and hotels are being built and more capital is flowing in and out of the African continent than before. But what is the real pace of economic growth? Does the increase in the volume of transaction result in a sustained increase in living standards? The evidence does not yet readily provide us with an answer. It is the job of scholars to give tempered assessments that navigate between what is make-believe and what passes as plausible evidence.
Morten Jerven is Associate Professor at the Simon Fraser University, School for International Studies. His book Poor Numbers: how we are misled by African development statistics and what to do about it is published by Cornell University Press. @MJerven
Since the term “data revolution” was introduced, there has been a flurry of activity to define, develop, and implement an agenda to transform the collection, use, and distribution of development statistics. That makes sense. Assessing the international community’s next development agenda, regardless of its details, will be impossible without accurate data.
Yet, in Sub-Saharan Africa – the region with the most potential for progress under the forthcoming Sustainable Development Goals – accurate data are severely lacking. From 1990 to 2009, only one Sub-Saharan country had data on all 12 indicators established in 2000 by the Millennium Development Goals. Indeed, of the 60 countries with complete vital statistics, not one is in Africa. While most African countries have likely experienced economic growth during the last decade, the accuracy of the data on which growth estimates are based – not to mention data on inflation, food production, education, and vaccination rates – remains far from adequate.
Inaccurate data can have serious consequences. Consider Nigeria’s experience earlier this year, when GDP rebasing showed that the economy was nearly 90% larger than previously thought. The distorted picture of Nigeria’s economy provided by the previous statistics likely led to misguided decisions regarding private investment, credit ratings, and taxation. Moreover, it meant that Nigeria was allocated more international aid than it merited – aid that could have gone to needier countries.
Contrary to popular belief, the constraints on the production and use of basic data stem not from a shortage of technical capacity and knowhow, but from underlying political and systemic challenges. For starters, national statistical offices often lack the institutional autonomy needed to protect the integrity of data, production of which thus tends to be influenced by political forces and special interest groups.
Poorly designed policies also undermine the accuracy of data. For example, governments and donors sometimes tie funding to self-reported measures, which creates incentives for recipients to over-report key data like vaccination or school-enrollment rates. Without effective oversight, these well-intentioned efforts to reward progress can go awry.
Despite these failings, national governments and international donors continue to devote far too few resources to ensuring the collection of adequate data. Only 2% of official development aid is earmarked for improving the quality of statistics – an amount wholly insufficient to assess accurately the impact of the other 98% of aid. And governments’ dependency on donors to fund and gather their core statistics is unsustainable.
In fact, stronger national statistical systems are the first step toward improving the accuracy, timeliness, and availability of the data that are essential to calculating almost any major economic or social-welfare indicator. These include statistics on births and deaths; growth and poverty; tax and trade; health, education, and safety; and land and the environment.
Developing such systems is an ambitious but achievable goal. All that is needed is a willingness to experiment with new approaches to collecting, using, and sharing data.
This is where the public comes in. If private firms, media, and civil-society organizations identify specific problems and call publicly for change, their governments will feel pressure to take the steps needed to produce accurate, unbiased data – for example, by enhancing the autonomy of national statistical offices or providing sufficient funds to hire more qualified personnel. While it may be tempting to bypass government and hope for an easy technology-based solution, sustainable, credible progress will be difficult without public-sector involvement.
The recognition by governments and external donors of the need for more – and more efficient – funding, particularly to national statistical systems, will be integral to such a shift. Establishing stronger incentives for agencies to produce good data – that is, data that are accurate, timely, relevant, and readily available – would also help, with clearly delineated metrics defining what qualifies as “good.” In fact, tying progress on those metrics to funding via pay-for-performance agreements could improve development outcomes considerably.
One concrete strategy to achieve these goals would be to create a country-donor compact for better data.
The UN claims that its Millennium Development Campaign has reduced poverty globally, an assertion that is far from true.
The received wisdom comes to us from all directions: Poverty rates are declining and extreme poverty will soon be eradicated. The World Bank, the governments of wealthy countries, and – most importantly – the United Nations Millennium Campaign all agree on this narrative. Relax, they tell us. The world is getting better, thanks to the spread of free market capitalism and western aid. Development is working, and soon, one day in the very near future, poverty will be no more.
It is a comforting story, but unfortunately it is just not true. Poverty is not disappearing as quickly as they say. In fact, according to some measures, poverty has been getting significantly worse. If we are to be serious about eradicating poverty, we need to cut through the sugarcoating and face up to some hard facts.
False accounting
The most powerful expression of the poverty reduction narrative comes from the UN’s Millennium Campaign. Building on the Millennium Declaration of 2000, the Campaign’s main goal has been to reduce global poverty by half by 2015 – an objective that it proudly claims to have achieved ahead of schedule. But if we look beyond the celebratory rhetoric, it becomes clear that this assertion is deeply misleading.
The world’s governments first pledged to end extreme poverty during the World Food Summit in Rome in 1996. They committed to reducing the number of undernourished people by half before 2015, which, given the population at the time, meant slashing the poverty headcount by 836 million. Many critics claimed that this goal was inadequate given that, with the right redistributive policies, extreme poverty could be ended much more quickly.
But instead of making the goals more robust, global leaders surreptitiously diluted it. Yale professor and development watchdog Thomas Pogge points out that when the Millennium Declaration was signed, the goal was rewritten as “Millennium Developmental Goal 1” (MDG-1) and was altered to halve the proportion (as opposed to the absolute number) of the world’s people living on less than a dollar a day. By shifting the focus to income levels and switching from absolute numbers to proportional ones, the target became much easier to achieve. Given the rate of population growth, the new goal was effectively reduced by 167 million. And that was just the beginning.
After the UN General Assembly adopted MDG-1, the goal was diluted two more times. First, they changed it from halving the proportion of impoverished people in the world to halving the proportion of impoverished people in developing countries, thus taking advantage of an even faster-growing demographic denominator. Second, they moved the baseline of analysis from 2000 back to 1990, thus retroactively including all poverty reduction accomplished by China throughout the 1990s, due in no part whatsoever to the Millennium Campaign.
This statistical sleight-of-hand narrowed the target by a further 324 million. So what started as a goal to reduce the poverty headcount by 836 million has magically become only 345 million – less than half the original number. Having dramatically redefined the goal, the Millennium Campaign can claim that poverty has been halved when in fact it has not. The triumphalist narrative hailing the death of poverty rests on an illusion of deceitful accounting.
Poor numbers
But there’s more. Not only have the goalposts been moved, the definition of poverty itself has been massaged in a way that serves the poverty reduction narrative. What is considered the threshold for poverty – the “poverty line” – is normally calculated by each nation for itself, and is supposed to reflect what an average human adult needs to subsist. In 1990, Martin Ravallion, an Australian economist at the World Bank, noticed that the poverty lines of a group of the world’s poorest countries clustered around $1 per day. On Ravallion’s recommendation, the World Bank adopted this as the first-ever International Poverty Line (IPL).
But the IPL proved to be somewhat troublesome. Using this threshold, the World Bank announced in its 2000 annual report that “the absolute number of those living on $1 per day or less continues to increase. The worldwide total rose from 1.2 billion in 1987 to 1.5 billion today and, if recent trends persist, will reach 1.9 billion by 2015.” This was alarming news, especially because it suggested that the free-market reforms imposed by the World Bank and the IMF on Global South countries during the 1980s and 1990s in the name of “development” were actually making things worse.
This amounted to a PR nightmare for the World Bank. Not long after the report was released, however, their story changed dramatically and they announced the exact opposite news: While poverty had been increasing steadily for some two centuries, they said, the introduction of free-market policies had actually reduced the number of impoverished people by 400 million between 1981 and 2001.
This new story was possible because the Bank shifted the IPL from the original $1.02 (at 1985 PPP) to $1.08 (at 1993 PPP), which, given inflation, was lower in real terms. With this tiny change – a flick of an economist’s wrist – the world was magically getting better, and the Bank’s PR problem was instantly averted. This new IPL is the one that the Millennium Campaign chose to adopt.
The IPL was changed a second time in 2008, to $1.25 (at 2005 PPP). And once again the story improved overnight. The $1.08 IPL made it seem as though the poverty headcount had been reduced by 316 million people between 1990 and 2005. But the new IPL – even lower than the last, in real terms – inflated the number to 437 million, creating the illusion that an additional 121 million souls had been “saved” from the jaws of debilitating poverty. Not surprisingly, the Millennium Campaign adopted the new IPL, which allowed it to claim yet further chimerical gains.
A more honest view of poverty
We need to seriously rethink these poverty metrics. The dollar-a-day IPL is based on the national poverty lines of the 15 poorest countries, but these lines provide a poor foundation given that many are set by bureaucrats with very little data. More importantly, they tell us nothing about what poverty is like in wealthier countries. A 1990 survey in Sri Lanka found that 35 percent of the population fell under the national poverty line. But the World Bank, using the IPL, reported only 4 percent in the same year. In other words, the IPL makes poverty seem much less serious than it actually is.
The present IPL theoretically reflects what $1.25 could buy in the United States in 2005. But people who live in the US know it is impossible to survive on this amount. The prospect is laughable. In fact, the US government itself calculated that in 2005 the average person needed at least $4.50 per day simply to meet minimum nutritional requirements. The same story can be told in many other countries, where a dollar a day is inadequate for human existence. In India, for example, children living just above the IPL still have a 60 percent chance of being malnourished.
According to Peter Edwards of Newcastle University, if people are to achieve normal life expectancy, they need roughly double the current IPL, or a minimum of $2.50 per day. But adopting this higher standard would seriously undermine the poverty reduction narrative. An IPL of $2.50 shows a poverty headcount of around 3.1 billion, almost triple what the World Bank and the Millennium Campaign would have us believe. It also shows that poverty is getting worse, not better, with nearly 353 million more people impoverished today than in 1981. With China taken out of the equation, that number shoots up to 852 million.
Some economists go further and advocate for an IPL of $5 or even $10 – the upper boundary suggested by the World Bank. At this standard, we see that some 5.1 billion people – nearly 80 percent of the world’s population – are living in poverty today. And the number is rising.
These more accurate parameters suggest that the story of global poverty is much worse than the spin doctored versions we are accustomed to hearing. The $1.25 threshold is absurdly low, but it remains in favour because it is the only baseline that shows any progress in the fight against poverty, and therefore justifies the present economic order. Every other line tells the opposite story. In fact, even the $1.25 line shows that, without factoring China, the poverty headcount is worsening, with 108 million people added to the ranks of the poor since 1981. All of this calls the triumphalist narrative into question.
A call for change
This is a pressing concern; the UN is currently negotiating the new Sustainable Development Goals that will replace the Millennium Campaign in 2015, and they are set to use the same dishonest poverty metrics as before. They will leverage the “poverty reduction” story to argue for business as usual: stick with the status quo and things will keep getting better. We need to demand more. If the Sustainable Development Goals are to have any real value, they need to begin with a more honest poverty line – at least $2.50 per day – and instate rules to preclude the kind of deceit that the World Bank and the Millennium Campaign have practised to date.
Eradicating poverty in this more meaningful sense will require more than just using aid to tinker around the edges of the problem. It will require changing the rules of the global economy to make it fairer for the world’s majority. Rich country governments will resist such changes with all their might. But epic problems require courageous solutions, and, with 2015 fast approaching, the moment to act is now. Read more @original source http://www.aljazeera.com/indepth/opinion/2014/08/exposing-great-poverty-reductio-201481211590729809.html
*Dr Jason Hickel lectures at the London School of Economics and serves as an adviser to /The Rules.
Africa’s economy may be booming, but this will do little to help unemployment and poverty if growth is jobless and its spoils are limited to the few.
“What we need in Africa is balanced development. Economic success cannot be a replacement for human rights or participation, or democracy … it doesn’t work…it worries us a lot when we don’t see the trickle-through factor, when gain goes to the top 1% or 2%, leaving the rest behind.” – Mo Ibrahim October 15, 2012
It did not come as a surprise to many when, on October 15, the Mo Ibrahim Foundation announced that there was no winner for its annual $5 million African leadership award – for the third time since its inception in 2006. What was surprising, however, was that the foundation’s chair, British-Sudanese billionaire Mo Ibrahim, alsoadmonished the much-celebrated recent economic ‘success’ of the African continent for largely failing to translate into better human rights and social development, and for essentially creating a few elitist winners at the top whilst the rest were left struggling at the very bottom.
Recent reports, forecasts and editorials of influential financial magazines are incredibly optimisticabout Africa – its booming economic growth, its investment opportunities and its growing middle-class. Sub-Saharan African countries are reportedly among the fastest growing in the world with six out of ten world’s fastest growing economies, and recording growth rates averaging 4.9%, higher than the developing country average and much higher than the developed country average.
The Economist’s December 2011 print issue was boldly titled ‘Africa Rises’ and in August 2012, it again boldly proclaimed that ‘A Continent Goes Shopping’, underscoring the voracious purchasing power of the African middle-class to buy consumer and even luxury goods. The current received wisdom in these sleek reports, glossy magazine pages and glass-panelled conference rooms is that sub-Saharan Africa really is the place to be and to invest in, with all its abundant opportunities.
Jobless growth
This much-trumpeted economic success is mostly true, until one looks at the other side. Then questions arise over to what extent growth is spread across sectors of the economy, and whether such economic growth is translating into corresponding improvements in human and social development.
It is common knowledge that this new dawn of booming economic growth is largely the consequence of the recent rise in the global commodity prices of natural resources, chiefly oil, while the vibrancy of other sectors of the economy such as banking, telecommunications and construction trail behind in terms of growth. Many African countries primarily depend on the exportation of natural resources – and industry which is highly capital- (and technology-) intensive, providing few jobs. Only five of Africa’s fifty-four countries are currently not “either producing or looking for oil”.
It is therefore no surprise that many African countries, especially the economic powerhouses of the continent, are bedevilled by high unemployment, particularly amongst young people – hovering at25% in Egypt, 48% in South Africa and 42% in Nigeria. Thus, growth in capital-intensive sectors – such as resource exports, banking, and telecommunications – is barely trickling down to create jobs and economic opportunities for the vast majority of the people – a phenomenon commonly known as ‘jobless growth’.
Many sub-Saharan African countries experiencing record-level economic growth still have low rankings in human development indices, despite marginal improvements in education enrolment and, with countrywide variations, maternal health. This contradiction is further reinforced by the growing inequality that characterises many of such African ‘powerhouses’. Luanda in Angola (thanks to flowing petro-dollars) and N’Djamena in Chad were, respectively, the second and eighth most expensive cities to live as an expatriate in 2012 – ahead of Sydney, London and New York according to Mercer’s Cost of Living Survey. Juba in the newly independent South Sudan is also gaining notoriety for its high cost of living, while the price of select real estate in Abuja and Lagos in Nigeria reportedly rivals that of some Western cities. These expensive cities are in countries grouped within the ‘Low Human Development’ category of the United Nation’s Human Development Index based on indicators such as health, income and education.
A tale of two cities
There has certainly been some improvement – for one, there is now an identifiable middle-class in Africa with money to splash around in the cinemas of Abuja and pricey hotels of Accra, the malls and retail outlets of Johannesburg and the exclusive residential estates of Lagos and Nairobi. However, once you step out of these glitzy inner cities and look to the outskirts, the glaring contrast between the shiny modernity and the urban deprivation in the slums hits you like the searing tropical sun.
The task thus remains for governments to devise sustainable development strategies that are tailored specifically to suit the African context. Such strategies must sustain the momentum of economic growth while ensuring that growth spreads to and strengthens sectors such as mechanised agriculture, light manufacturing and small-scale enterprises, which have a direct impact on the lives and incomes of citizens.
Such transformational policies should ensure that revenue windfalls are utilised wisely towards social and welfare policies, which will empower millions of Africans out of poverty, thereby creating a robust middle-class rather than just enriching an already existing sliver. It also means that such funds can be saved to help with later needs, as with the Sovereign Wealth Fund embarked on by countries such as Angola and the new oil-producer Ghana.
Importantly, the African youth bulge needs to be transformed into a demographic dividend by providing employment and economic opportunities to an increasingly educated African youth and by providing critically needed infrastructure so that abundant innovative ideas, which are capable of transforming lives and societies, can materialise into reality.
Ultimately, these are still governance challenges that Africa has a long way go to overcome, but the marginal improvements in some aspects of governance, especially women’s rights, as the Mo Ibrahim Foundation’s Index has shown, gives room for some cautious optimism. Mo Ibrahim’s admonishment could not have come at a better time.
*Zainab Usman is a Nigerian freelance writer. She is currently a DPhil candidate at the University of Oxford in Governance and Political Economy of Economic Diversification in Sub-Saharan Africa. She has a BSc in International Studies from Ahmadu Bello University Zaria and a Masters in International Political Economy and Development from the University of Birmingham. Zainab is an advocate of good governance, poverty reduction and women and youth empowerment. She regularly blogs atzainabusman.wordpress.com.
Africa’s poverty persists in the midst of a wealth of natural resources, estimated by the United Nations Economic Commission on Africa as including 12 percent of the world’s oil reserves, 42 percent of its gold, 80 to 90 percent of chromium and platinum group metals, and 60 percent of arable land in addition to vast timber resources.
If these were idle, unexploited resources, it would be one thing.
However, the reality is that they are increasingly being exploited: investment and trade in Africa’s resources sector is on the rise, largely accounting for the sustained GDP growth rates witnessed over the last decade. The Economist magazine has reported increased foreign direct investment into Africa, rising from U.S. $15 billion in 2002, to $37 billion in 2006 to $46 billion in 2012.
While trade with China alone went up from $11 billion in 2003, to $166 billion in 2012, very little can be pointed to in commensurate changes in human development and fundamental economic transformation. It is multi-national corporations and a few local elites which are benefiting disproportionately from the reported growth – exacerbating inequality and further reinforcing the characteristic “enclave economy” structural defect of most African economies.
The disparity between sustained GDP growth rates and Africa’s seemingly obstinate and perverse state of underdevelopment, extreme poverty and deepening inequality brings to the fore issues of inclusivity and responsible governance of domestic resources. The question that is being asked by many – especially Africa’s young people who have assumed the agenda for economic transformation as a generational mandate – is this: Why are we so poor? Yet we are so rich?
Farmer Djeneba Diarra on her farm in Heremakono, Mali (Photo: Joe Penney/Reuters)
You must be logged in to post a comment.