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  • Industrial nations tie foreign aid to support for "war on terror"

    Industrial nations tie foreign aid to support for "war on terror"
    By Barry Mason

    World Socialist
    June 17 2004

    Christian Aid, the British development charity, recently issued a
    report entitled "The Politics of Poverty Aid in the New Cold War." It
    states: "Aid is viewed increasingly as a means of promoting and
    safeguarding the donors' own interests, particularly their security,
    rather than addressing the real needs of poor people. Aid, in other
    words, is being co-opted to serve in the global 'War on Terror.' "

    The report points out: "Already some of the world's poorest people
    are paying for the War on Terror. Programmes designed to help them
    have been cut, budgets reallocated and hopes dashed as donor
    priorities have switched to addressing the needs of 'global
    security.' "

    What is beginning to take place is the blurring between military aid
    and development aid. This change in orientation is being actively
    promoted by the Organisation for Economic Cooperation and Development
    (OECD), which comprises the world's leading industrial nations. Its
    Development Assistance Committee (DAC) has been reviewing aid policy.

    In 2003, it published a paper, "A Development Cooperation Lens on
    Terrorism Prevention." In the paper it commented: "Development
    cooperation does have an important role to play in helping to deprive
    terrorists of popular support...and donors can reduce support for
    terrorism by working towards preventing the conditions that give rise
    to violent conflict in general and that convince disaffected groups
    to embrace terrorism in particular.... [T]his may have implications
    for priorities including budget allocations and levels and
    definitions of ODA [Official Development Aid] eligibility criteria."

    Christian Aid explains that behind its opaque language, the OECD is
    considering a "seismic shift in its policy." Following the report, a
    DAC workshop was held in Paris in February of this year. Among the
    issues discussed was whether aid could be used for military training.
    Whilst perhaps not financing armies directly, the workshop discussed
    providing training to the trainers of security forces, training to
    armed forces—such as helping militias being integrated into regular
    forces—and training to the military in how to enforce peace-keeping
    and planning missions. There is an ongoing debate over these issues
    within the DAC.

    In a similar development, European Union ministers meeting in March
    of this year agreed that aid donations and trade concessions to
    non-EU countries should be linked to security cooperation. Javier
    Solana, the EU foreign affairs chief, described it as a "significant
    step in the area of counter-terrorism and intelligence cooperation."
    The EU bloc is responsible for dispensing US$35 billion a year in aid
    donation, of which US$7.9 billion is directly distributed by the
    European Commission.

    Currently, the EU has separate directorates with responsibility for
    foreign policy and overseas aid. It is proposed that in future these
    responsibilities will be merged in line with the politicisation of
    aid.

    Danida, the Danish development agency, has announced a switch in its
    policy for the period 2004-2008, allocating money to the Middle East.
    It will give US$49 million to an aid and reconstruction package for
    Iraq, switching the money from grants to Africa.

    Australia is using its official ODA money for various anti-terrorism
    measures in Indonesia, the Philippines and throughout Southeast Asia.
    It will channel AU$120 million (US$83.5 million) of its ODA to Iraq.
    The report points out that with an increase of only AU$79 million
    (US$55 million) in its ODA budget compared to last year, this will
    inevitably result in cuts to other areas.

    For its part, the Japanese Ministry of Foreign Affairs has stated:
    "Since the terrorist attacks in the United States on 11 September
    2001, there has been greater international awareness of the
    possibility of poverty [zones] becoming hotbeds of terrorism and the
    role of ODA is being reconsidered."

    At the end of 2002, Japan allocated ODA money to the Philippines,
    including US$22.6 million to a governance-improvement programme for
    the autonomous region of Mindanao in a "package for peace and
    security" and nearly US$370 million for a "peace-building and
    counter-terrorism programme."

    The report states: "Within the official 2004 ODA budget, the funds
    allocated for peace building and conflict prevention have risen
    dramatically from 12 billion yen to 16.5 billion yen. Meanwhile,
    Japan has cut its total ODA budget from 857.8 billion yen in 2003 to
    816.9 billion yen in 2004. Again, the implications are clear.
    Targeting the poor is likely to take second place to security
    interests."

    In Britain last year, the director of Christian Aid, Daleep Mukarji,
    wrote on behalf of five leading aid agencies to Prime Minister Tony
    Blair regarding funding commitments to Iraq from the government's
    Department for International Development (DFID). Blair replied that
    "funds will not be redirected from other...programmes."

    But the Christian Aid report says that an internal DFID document
    entitled "Resource Reallocation" was leaked last October that stated:
    "The burden of financing Iraq will have to be borne by the
    contingency reserves and reductions in middle-income country budgets.
    These plans will mean that a number of our current programmes in
    middle-income countries will close."

    DFID will need to find £267 million (US$489 million) over the next
    two years from cutting projects to "middle-income" countries.
    Projects to provide drinking water in Guyana and to give support to
    indigenous Indians in Bolivia are amongst those to be cut, according
    to the Christian Aid report.

    The British Overseas NGOs for Development (BOND), an umbrella group
    of British development charities, wrote in a report last year: "This
    international focus on security and terrorism is having an impact on
    development, not only by drawing political and media attention away
    from development concerns, but by influencing aid allocations and the
    nature of donor cooperation with developing countries."

    The New York-based think tank, the Centre for Defence Information
    (CDI), noted how the United States has realigned its relationship
    with countries that were previously ineligible for military aid but
    are now seen as vital in the "War on Terror." These include Armenia,
    Azerbaijan, Tajikistan and Pakistan. CDI reports that the US has sold
    US$1.2 billion of fighter jets and missiles to Oman and around US$400
    million of missiles to Egypt. It is providing large shipments of
    military aid to countries identified as fighting terrorist groups.
    Indonesia is getting training from the Department of Defence's new
    Counter Terrorism Fellowship Programme. That country was previously
    banned from receiving such training following its role in East Timor.

    A stark example is the increase in ODA by the US government to
    Pakistan following 9/11 and the war in Afghanistan. From a figure of
    less than US$100 million per year, it has risen to nearly US$800
    million.

    In the conclusion to the CDI report, it states: "Having a new
    quasi-ideological theme to justify most security assistance is
    extremely convenient for the Bush administration. Policy objectives
    that could not have been pursued in the pre-September 11 security
    environment can now be repackaged and sold as part of the
    counter-terrorism effort. In addition, wrapping new security
    assistance programs in a counter-terrorism cloak allows the
    administration to provide support for repressive regimes and aid to
    states verging on, or currently involved in, armed conflict."

    In the recommendations section of the report, Christian Aid states:
    "We have shown that dark clouds are already gathering over the ideal
    that aid should be exclusively directed towards these that need it
    most.... World leaders must ensure that aid is not hijacked by the
    imperatives of the War on Terror, as it was by the Cold War."

    The continuing intensification of the drive towards re-colonisation
    by the imperialist powers is bringing out the true nature of
    international relationships. Christian Aid's report shows that the
    aid programmes of the major powers are not isolated from this
    development. In spite of the appeals by Christian Aid, this trend
    will not be moderated but will intensify.
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