REVERSEDDEVELOPMENT AIDFrancine Mestrum, Brussels, 15 March 2012
Rio+20   The challenge of RIO+20     Save the planet and save humanity     Environmental justice is a matter of equity ...
Sharing in the 21th century:   At national level: taxes and social protection    (social security, social assistance, pub...
Reversed development aid   ODA in 2010: 128,7 billion US$ - highest level    ever and + 6,5 % in comparison to 2009,    t...
Reversed Development Aid   Foreign Debt SSA:     Net transfers 2005: 5 billion US$ (Boyce &      Ndikumana)     Foreign...
Reversed development aid   Illicit Capital flows:   For all developing countries 2000-2009: 775 to    993 billion US$/ye...
Reversed development aid   Illicit Capital flows:     Forevery $ received in aid, flows out of the      country in an il...
Reversed development aid   Illicit capital flows:     Trade mispricing     Role of tax havens
Reversed development aid   International trade     Trade liberalisation has cost Africa the past 20      years 272 US$ (...
Reversed development aid   Royalties, repatriation of profits and monetary    reserves:     Non transparant contracts in...
Reversed development aid   Ecological debt   Historical debt   Social debt   …   More money goes from S to N than fro...
Poverty reduction policies   Two main strategies:     WB/IMF:PRSPs     UN: MDGs   Both strategies are failing   Newes...
Sharing resources   Monetary and non monetary, including natural    resources:     Re-think   ‘development aid’ and swit...
The Common Good ofHumankind   Proposal for a new political, economic and    cultural paradigm   Has to integrate social ...
Reversed development aid
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Reversed Development Aid by Francine Mestrum

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Reversed Development Aid by Francine Mestrum

  1. 1. REVERSEDDEVELOPMENT AIDFrancine Mestrum, Brussels, 15 March 2012
  2. 2. Rio+20 The challenge of RIO+20  Save the planet and save humanity  Environmental justice is a matter of equity  Reconcile social justice with environmental justice  A matter of sharing  All resources
  3. 3. Sharing in the 21th century: At national level: taxes and social protection (social security, social assistance, public services) At global level: development aid for poverty reduction  Both fail
  4. 4. Reversed development aid ODA in 2010: 128,7 billion US$ - highest level ever and + 6,5 % in comparison to 2009, though only 0,32 % of GDP (OECD) ODA non-DAC countries estimated at about 15 billion US$ (OECD)
  5. 5. Reversed Development Aid Foreign Debt SSA:  Net transfers 2005: 5 billion US$ (Boyce & Ndikumana)  Foreign debt 2007: 130 billion US$ - SSA money on foreign bank accounts: 230 billion US$ (CADTM) Foreign debt all non-oil exporting countries 1980: 370 billion US$ 2008: 3360 billion US$ Debt servicing 1980-2007: 7150 billion US$ (CADTM)
  6. 6. Reversed development aid Illicit Capital flows: For all developing countries 2000-2009: 775 to 993 billion US$/year (GFI)  Average for past 3 years: > 1trillion US$/year  44,9 % from Asia; 18,6 % from MENA For the 48 LDC’s 1990-2008:  From 9,7 billion US$ in 1990 to 26,3 billion US$ in 2008
  7. 7. Reversed development aid Illicit Capital flows:  Forevery $ received in aid, flows out of the country in an illicit way:  16,7 $ in Eq. Guinea  5,6 $ in Angola  2,9 $ in Chad  1,4 $ in Bangladesh  (GFI)
  8. 8. Reversed development aid Illicit capital flows:  Trade mispricing  Role of tax havens
  9. 9. Reversed development aid International trade  Trade liberalisation has cost Africa the past 20 years 272 US$ (Christian Aid) through tariff losses
  10. 10. Reversed development aid Royalties, repatriation of profits and monetary reserves:  Non transparant contracts in mining – very low return for developing countries  Difference between investments and repatriation of profits 1995-2003 (SOMO) :  RDC: 1,150 billion US$  Nigeria: 1,603 billion US$  Botswana: 4,678 billion US$ Dollar reserves of developing countries (without China) 2010: 4900 billion US$ - interest loss 300 billion US$ (Eurodad)
  11. 11. Reversed development aid Ecological debt Historical debt Social debt … More money goes from S to N than from N to S = a good reason to re-think aid and international relations
  12. 12. Poverty reduction policies Two main strategies:  WB/IMF:PRSPs  UN: MDGs Both strategies are failing Newest statistics from WB : the number of extremely poor people in SSA has risen with 65 % from 1990 to 2008.
  13. 13. Sharing resources Monetary and non monetary, including natural resources:  Re-think ‘development aid’ and switch to ‘solidarity’  Abandon the priority of ‘poverty reduction’ and stop the impoverishment processes : social protection  Re-think and broaden the concept of social protection in order to include new dimensions – social + environmental justice  Re-think ‘development’: national policy space and a new economic paradigm  Re-think sovereignty
  14. 14. The Common Good ofHumankind Proposal for a new political, economic and cultural paradigm Has to integrate social protection Social protection had to integrate climate change Global social justice: www.globalsocialjustice.eu
  15. 15. Reversed development aid

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