In the bitter winter of 1788-1789, the government of Louis XVI exported almost the entire French grain crop, lining the pockets of aristocrats and landed elites while leaving peasants to starve. The result was the French Revolution, during which the monarchy and aristocracy lost their governing privileges and Louis lost his head.
In the catastrophic harvests from 2001 to 2005, the government of Malawi -- under pressure from the World Bank and donors such as the United States and Britain -- eliminated nearly all its subsidies for fertilizer. The African nation then exported its diminished cash crops for foreign currency with which it was supposed to buy food (from subsidized French and U.S. farmers, as things turned out) for its starving peasants.
The result was the Malawi Revolution, a revolt against the supposedly "free trade" conditions set by foreign-aid donors. Malawi's president defied the World Bank and subsidized fertilizer and seed -- a course of action that has lifted farmers from poverty, nearly tripling crop outputs in two years.
Malawi was not rejecting free trade per se. But like other Third World agricultural nations, Malawi has found that free-trade policies that are supposed to help economies develop in fact seem to make subsidized cash crops from developed countries more competitive.
The World Bank says subsidies impede trade; underwriting seed and fertilizer would give Malawian farmers an unfair advantage. And yet American and French farmers, who are regularly subsidized by their governments, sell grain to Malawi. Is that fair competition? Or just plain hypocrisy? Who can blame the cynical for thinking that the International Monetary Fund and the World Bank -- international institutions dedicated to promoting economic growth and eradicating poverty -- manipulate the rules to the benefit of rich nations? The Third World goose marches to the tune of Milton Friedman, while the First World gander plugs its ears and lets the subsidies flow.
In the end, even U.S. foreign aid gets distorted. According to a report in The New York Times last month, the United States has given Malawi US$147 million in food relief since 2002 -- in essence, an undeclared subsidy to American farmers. But it has given only US$53 million to help farmers in Malawi grow their own food. And not a nickel for the fertilizer subsidy program.
There are countless examples of the pernicious effect of donor hypocrisy. Argentina played by the IMF's rules earlier this decade, dismantling much of its social agenda as instructed, yet reaped not prosperity but the whirlwind. Not so long ago, ore-rich regions of Africa allowed the World Bank to pump money into mining and other extraction industries, and watched investors walk away with all the profits. The World Bank has since changed its tune, but the damage has been done.
Sunday, 13 January 2008
UN Says Southern Africa Floods Could Worsen
The United Nations says some of the worst floods in a decade in Southern Africa could worsen as more rain is forecast for the region. Tens of thousands of people in Zambia, Zimbabwe, Malawi and Mozambique have been affected by the flooding. Lisa Schlein reports for VOA from Geneva.
The United Nations estimates more than 80,000 people in four countries have been affected by the floods, which began in early December.
Mozambique is bearing the brunt of the disaster, with more than 70,000 people seriously affected. Rescue efforts are underway.
UN Humanitarian spokeswoman Elizabeth Byrs tells VOA at least 30,000 people have already been moved and resettled in centers. She says many of the victims had refused to leave the dangerous areas and the authorities have been forced to remove them against their will.
"But, this situation is of concern because roughly 1,000 and 600 households have been moved to higher ground due to the flooding at the confluence between the Zambezi and the river Shire," said Byrs. "Over 31,000 hectares of land are lost right now, arable lands are lost in flooding, which is a very important loss for the economy and for the livelihood of that population."
The relentless rains also are causing severe flooding in many areas of northeastern Zimbabwe, leading to severe destruction and affecting at least eight thousand people.
Aid agencies report many crops have been washed away and food stocks destroyed. They say people who already were vulnerable before the floods are now totally dependent on households in communities who managed to salvage their own stocks.
The United Nations says it is stepping up its humanitarian operations. It says it will deploy more experts in emergency management to the region in the coming days to help the governments cope with the disaster.
Over the past week, the International Organization for Migration has provided non-food emergency assistance to more than 800 households in Zimbabwe. Spokesman, Jean-Philippe Chauzy, says the risk of malaria and water-borne diseases is growing.
"We have noticed with our partners an increase in various diarrheal diseases which obviously need to be addressed mostly because water is being contaminated. Because of the floods, drinking water is being contaminated," said Chauzy. "So, obviously, water and sanitation is a priority for the emergency response. Yes, households have been affected. Some households have been washed away by the rain. There, again, we are with our partners providing non-food items. There are tarpaulins that will allow people to have at least one dry area in the house."
The distress caused by the flooding is expected to continue for some time. Heavy rains are predicted for Madagascar from January to March. The Madagascan government says up to 600,000 people could be affected by flooding.
The United Nations estimates more than 80,000 people in four countries have been affected by the floods, which began in early December.Mozambique is bearing the brunt of the disaster, with more than 70,000 people seriously affected. Rescue efforts are underway.
UN Humanitarian spokeswoman Elizabeth Byrs tells VOA at least 30,000 people have already been moved and resettled in centers. She says many of the victims had refused to leave the dangerous areas and the authorities have been forced to remove them against their will.
"But, this situation is of concern because roughly 1,000 and 600 households have been moved to higher ground due to the flooding at the confluence between the Zambezi and the river Shire," said Byrs. "Over 31,000 hectares of land are lost right now, arable lands are lost in flooding, which is a very important loss for the economy and for the livelihood of that population."
The relentless rains also are causing severe flooding in many areas of northeastern Zimbabwe, leading to severe destruction and affecting at least eight thousand people.
Aid agencies report many crops have been washed away and food stocks destroyed. They say people who already were vulnerable before the floods are now totally dependent on households in communities who managed to salvage their own stocks.
The United Nations says it is stepping up its humanitarian operations. It says it will deploy more experts in emergency management to the region in the coming days to help the governments cope with the disaster.
Over the past week, the International Organization for Migration has provided non-food emergency assistance to more than 800 households in Zimbabwe. Spokesman, Jean-Philippe Chauzy, says the risk of malaria and water-borne diseases is growing.
"We have noticed with our partners an increase in various diarrheal diseases which obviously need to be addressed mostly because water is being contaminated. Because of the floods, drinking water is being contaminated," said Chauzy. "So, obviously, water and sanitation is a priority for the emergency response. Yes, households have been affected. Some households have been washed away by the rain. There, again, we are with our partners providing non-food items. There are tarpaulins that will allow people to have at least one dry area in the house."
The distress caused by the flooding is expected to continue for some time. Heavy rains are predicted for Madagascar from January to March. The Madagascan government says up to 600,000 people could be affected by flooding.
Taiwan president visits Guatemala, St Lucia to save ties
Taipei - Taiwan President Chen Shui-bian left on a visit to Guatemala and St Lucia on Sunday to save diplomatic ties and counter China's bid to win over Taiwan's allies. Chen will attend the inauguration of Guatemala's President-elect Alvaro Colom on January 14, and then visit St Lucia, which resumed diplomatic ties with Taiwan last April.
He will also hold talks with the leaders of four allies - El Salvador, Nicaragua, Panama and Honduras - when they are in Guatemala City to attend Colom's inauguration.
In his pre-departure speech at the Taiyuan International Airport, Chen blasted China for trying to isolate Taiwan and using dollar diplomacy to win over Taiwan's allies.
"Faced with the difficulty of the diplomatic situation, we cannot wait to die, but must go out and let the world see us and face the fact that we are a sovereign nation," he said.
The danger of losing these allies to China is very real, and Taiwan's allies are not hiding their contacts with China.
On Friday, Guatemala's president-designate Colom said he sees Central America moving closer to China to benefit from its growing economic power, but he stopped short of saying Guatemala will follow the example of Costa Rica which dropped Taipei to recognize Beijing in June.
Malawi, Taiwan's African ally, sent two ministers to China on December 24 to sign an agreement to prepare for launching ties.
China reportedly has offered six billion dollars' aid to Malawi, but Malawi has not announced when it will cut ties with Taiwan to recognize China, prompting speculation that Malawi would maintain ties with Taiwan if Taipei can match China's offer of aid.
He will also hold talks with the leaders of four allies - El Salvador, Nicaragua, Panama and Honduras - when they are in Guatemala City to attend Colom's inauguration.
In his pre-departure speech at the Taiyuan International Airport, Chen blasted China for trying to isolate Taiwan and using dollar diplomacy to win over Taiwan's allies.
"Faced with the difficulty of the diplomatic situation, we cannot wait to die, but must go out and let the world see us and face the fact that we are a sovereign nation," he said.
The danger of losing these allies to China is very real, and Taiwan's allies are not hiding their contacts with China.
On Friday, Guatemala's president-designate Colom said he sees Central America moving closer to China to benefit from its growing economic power, but he stopped short of saying Guatemala will follow the example of Costa Rica which dropped Taipei to recognize Beijing in June.
Malawi, Taiwan's African ally, sent two ministers to China on December 24 to sign an agreement to prepare for launching ties.
China reportedly has offered six billion dollars' aid to Malawi, but Malawi has not announced when it will cut ties with Taiwan to recognize China, prompting speculation that Malawi would maintain ties with Taiwan if Taipei can match China's offer of aid.
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