Neo-liberals, development and solidarity

(Sept. 19, 2011)

I identify with an approach to development that emerges from social movements and emphasizes community participation and political engagement for health, education, employment, democracy, ecology and respect for diversity. In Latin America today, this approach is gaining ground.

Another approach (sometimes called neo-liberalism) facilitates the advance of globalized capitalism. It focuses strongly on infrastructure, industrialization and export-oriented market economies. An example is the Mesoamerican Integration and Development Project, a basket of initiatives commonly called Plan Puebla-Panama.

From the neo-liberal side in recent years, two books caught my attention.

In 2009, former Goldman Sachs investment banker Dambisa Moyo offered a sloppy rant called Dead Aid that became popular with ideologues who see no useful role for governments (except when they bail out errant bankers). In ways not helpful to her cause, Moyo conflates all kinds of development and loan packages into what she calls “aid.”

If she were only talking about the mega-scale World Bank or International Monetary Fund style of “aid,” we might find some common ground. But she does not distinguish between funding for mega-projects and aid that is delivered through non-governmental organizations, or between pre and post Cold War eras, or military aid and other kinds of aid.

Shrimp and other fishing boats at the pier in Bilwi (Puerto Cabezas), Nicaragua (2002)

In the book’s second half, Moyo dips into a grab-bag of ideas promoted by conservatives as solutions for developing countries.

  • Reduced trade barriers to improve access to northern markets by southern farmers—okay, but no mention is made of the differences between small-holder farmers and industrial-scale farming: if you attack small farmers, as in Mexico and Colombia, you get massive migration into cities and across borders and dependence on food imports.
  • Micro-credit—okay, but in the credit union/co-operative style of community development, not as training in capitalism.
  • “Property rights” that Moyo advocates so that poor people can have title to their homes and then use them as collateral in loans—but this requires land reform including urban land titles that the left always advocates and that the far right always blocks (and property rights must never be absolute, but always subject to consideration of the common good).

The Bottom Billion

More useful than Moyo is Paul Collier’s 2007 book, The Bottom Billion. While it is a conventional defence of growth as the way out, Collier’s precision about different approaches and particularly how most attention should be given to about 60 of the most impoverished countries merits consideration.

Even so, I would say that many countries that have supposedly escaped “the bottom billion” still maintain massive parts of their populations in conditions of extreme poverty (India, Brazil, Mexico, South Africa and perhaps China). The perspectives of social movements and NGOs give us insight into what happens to those who are marginalized within countries that seem to have escaped the bottom billion. Problems of governance, income distribution, natural resource management, and civil conflict continue even while macro-economic indicators show overall “improvement” in recent years.

But what if we take Collier at his word, and work in some North-South partnerships differently? Many countries are not mired in poverty in the way that they might once have been, but most people still face dramatic challenges. We work alongside partners who seek to address systemic justice questions in their countries just as we do in Canada.

Perhaps our discourse needs to shift a bit too. We’re not talking anymore about “third world” or even “five-sixths world,” but often about inequitable conditions within countries, including our own.

I like the trans-border coalition approach of groups like Common Frontiers and the World Social Forum: rather than blaming others for taking jobs, they build solidarity among, for example, energy or steel workers who face common challenges across borders—and sometimes the same employers.

In those countries that in Collier’s terms are “failing,” our work should strengthen civil society voices in the face of poverty reduction schemes imposed from outside that sometimes facilitate exploitation rather than human development.

Government funding for development

(Sept. 17, 2011)

In November 2009, Canada’s federal government rejected a funding request ban KAIROS, the ecumenical justice coalition comprised of Canadian church organisations.

Subsequent public debates about defence of the human rights of Palestinians, the shifting sands of CIDA priorities, and then about ethics in government—that infamous Bev Oda ^NOT—catapulted issues in relations between government and non-governmental organisations (NGOs) onto the front pages. Funding to other NGOs and to the Canadian Council for International Cooperation also ended.

Despite budget cuts, the churches and non-governmental organizations among which I have worked over these past decades will likely keep on doing what they do well: accompanying partner organizations around the world to advance human rights, community development and social and ecological justice. As the t-shirt proclaims, KAIROS is ^NOT going away.

KAIROS supporters join the G8/G20 protests in Toronto, June 26, 2010

Obviously, partnership work is easier when backed with public funds. Since the 1960s, all governments—except the current one—saw the value of working with other groups and have funded NGO development programs. It’s not that we feel a sense of entitlement, much less think that the state should fund the church. But NGOs, together with CIDA staff and elected officials, form a sort of community of development practitioners. Our experiences inform each other’s practice in the complex world of development assistance.

Sharp disagreements, healthy collaboration

Even in the midst of sharp disagreement over the years about matters such as tied aid and the growth of bureaucracy that administered Official Development Assistance (ODA), it has been possible to maintain healthy collaboration with the government. We work with government programs in support of partner goals that are aimed at improving the well-being of people and the Earth.

At the same time, we maintain a lively critique of the use and misuse of power. We watch the impacts of what is done in the name of “development” that is carried out only for the sake of wealth creation. We uphold ethical principles in government, and we bring partner perspectives to bear on decisions in Canada that affect their interests. Over these past decades, we have been pretty noisy in the face of onerous foreign debt, structural adjustment programs, resource extraction, climate change, and free trade deals that weaken governments and harm farmers and workers.

But there are other debates about development. From the right and the left, aid is sometimes assailed as ineffective (or worse). Whatever happens in the Canadian debates over financing for development, we still have to ask what might be wrong with development aid programs and what might be done differently.

While I am convinced that work at the modest scale carried out by most Canadian NGOs and by church partners around the world is effective and accomplishes its goals, criticism of some of the large-scale efforts—such as those of the international financial institutions like the World Bank—has some justification.

Official development and a liberation agenda

(Sept. 15, 2011)

Political debate in Canada about the future of this country’s development assistance programs is what pushed me to start writing about development.

Canada’s aid program has its roots in the 1950s. Cold War competition and fruitful interaction with a generation of new leaders in the Commonwealth led Canada into new relationships with many newly independent “developing nations.”

In 1960, the External Aid Office was created. In 1968, near the end of a period when Canadian governments found new roles in social policy, health care, human rights and international development, the Canadian International Development Agency (CIDA) was created to administer the bulk of Canada’s official development assistance (ODA) programs.

CIDA’s aim is“to manage Canada’s support and resources effectively and accountably to achieve meaningful, sustainable results and engage in policy development in Canada and internationally, enabling Canada’s effort to realize its development objectives. CIDA works in concert with its development partners, fragile states and countries in crisis, countries of focus, and the Canadian population and institutions.”

“God is Good,” says the broken-down water truck in Delmas, Port-au-Prince (2011)

Initially, CIDA administered the bulk of Canada’s ODA program in Africa, the Middle East, the Americas, and Asia. “In 1995, CIDA took on the responsibility of administering Canada’s official assistance (OA) programs in Central and Eastern Europe, and the former Soviet Union (countries in transition) by supporting democratic development and economic liberalization.”

A liberation agenda

Some in the north sought to participate in official development programs while maintaining both a lively critique of the programs and advancing a liberation agenda. As the Canadian Interchurch Fund for International Development (ICFID*—an ancestor of KAIROS) was formed in 1973, its member churches provided a definition of development that served the churches for the next 25 years or so:

“Development is a process of continuous change by which any country, any specific population, or sector of population in its natural, cultural, or social milieu and at a definite stage in history, within a framework of international relations, seeks liberation, both material and spiritual, by:

  • transforming its structures of production;
  • establishing new social relationships;
  • acquiring for itself adequate political and administrative institutions;
  • recreating or strengthening its own culture for the purpose of achieving a better quality of life.”

* ICFID: Robert Fugere, “The Interchurch Fund for International Development,” in Christopher Lind and Joe Mihevc, eds. (1994), Coalitions for Justice, Ottawa: Novalis, p. 220.