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A riveting reality check for development aid


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By John Metzler
SPECIAL TO WORLD TRIBUNE.COM

April 12, 2000

United Nations -- For the longest time there was an unwritten rule that poverty was always someone else’s fault. In other words, Third World underdevelopment would be blamed variously on the former colonial powers, the Cold War rivalry between the USA and Soviet Union or even the vagrancy’s of weather. Criticizing the political climate--and the oft corrupt ruling elites--in the countries themselves was clearly taboo. Until now.

At long last and to its credit, the United Nations Development Programme (UNDP) concedes that even “Good economic policies and growth are not enough for poverty reduction, The ‘missing link’ between poverty and its reduction in scores of developing countries and economies in transition is effective government institutions.”

In a gripping and controversial study unique in its candor, “Overcoming Human Poverty; UNDP Poverty Report 2000” we are reminded that “When governments are unaccountable or corrupt, poverty reduction programs have little success in targeting benefits...the bottom line requirement for reducing poverty in any country is to have an government accountable to the people.”

Mark Malloch Brown, the UNDP’s Administrator stressed, “What this Report clearly demonstrates is that governance is a critical building block for poverty reduction.”

While the modern mantra requires that even corrupt regimes will stage regular elections as a kind of window dressing to fulfill the requirement that “democracy has triumphed,” the reality remains that such regimes put the style over substance especially to impress Western aid donors who demand this benediction of political legitimacy.

The UNDP Report argues “that democracy alone is not a “vaccination” against poverty. Although “having regular elections free and fair--can bolster accountability.” Yet, even with better government, the solutions often seem remote from the people, this largely due to the centralized natures of most states who are politically stratified and highly bureaucratic even if democratic.

Importantly anti-poverty efforts in places as diverse as Thailand and Uganda have proven successful and decentralization of government interference in places as Morocco and Nepal have eased logistic logjams making it easier to streamline assistance.

UNDP argues that the “World poverty agenda remains adrift, it needs new focus and fresh approaches that are concentrated more on governance and empowering people and less on social welfare.” In other words getting away from the distinct hauteur characterizing global social development agencies who inevitably know best what poor people need and getting back to basics.

Where poverty eradication campaigns bypass local government institutions and ignore the value of community organizations, they are far less effective. Naturally there are roadblocks. The Dominican Republic has benefited from an expanding economy and a government committed to poverty reduction. Yet, while the central government attempts to decentralize aid efforts, it finds itself at loggerheads with opposition parties who head most local councils. Thus there’s a political impasse with the poor as pawns.

“External donors once operated mainly through the central government. Capacity- building efforts may have strengthened the central apparatus of the state to carry out development, but funds never seemed to end up in the hands of the poor.” The Report adds, “If poverty reduction programs are to succeed, local government must be accountable both to the central government for the funds allocated to it and its constituents in how it uses them.”

Part of the problem also rests with Western donor states who as UNDP opines, “wealthy donor countries have not backed up their own pro-poor rhetoric they have been cutting back on aid failing to focus what remains on reducing poverty. They are committed to debt relief, not but not helping poorer countries trade more to pay off their debts.” In other words not allowing genuinely open markets and tariff free trade.

There’s no question that even so many resource rich states such as Nigeria, Indonesia, or Russia, have become mired in the Catch 22 of corrupt government and civil violence almost guaranteeing endemic poverty. Without the proper rule of law and clear cut property and business rights, the sought after economic stability remains fleeting.

John J. Metzler is a U.N. correspondent covering diplomatic and defense issues. He writes weekly for World Tribune.com.

April 12, 2000


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