[afro-nets] Food for some assorted thoughts

Food for some assorted thoughts
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Human Rights Reader 120

ON FOREIGN AID, CORRUPTION, DEMOCRACY AND DEVELOPMENT: IMPLICA-
TIONS FOR HUMAN RIGHTS

History is always written by the winners; the losers are oblit-
erated and the winners write the history books which glorify
their own cause and disparage the conquered foe. By its own na-
ture, history is always a one-sided account. "What is history
but a fable agreed upon?" (Napoleon)

1. International aid is purported to be helping in the quest for
improved human rights (HR). But the crucial flaw of interna-
tional aid (ODA) overall is that states cannot be made to work
from the outside. So, are donors looking at or focusing on the
wrong side of the coin?

1a. [Aid has become increasingly skewed --away from lower income
to middle income countries. Moreover, aid is becoming a window
dressing since, compared to their income, rich countries give
only half as much foreign aid as they did in the 1960s].

2. Corruption is importantly linked to foreign aid. The more
corrupt a country, the more its internal tax revenue declines
when it receives grant aid (or direct foreign investment, for
that matter). The fruits of capitalist globalization then make
the formal economy and the tax revenue of states smaller --ergo,
the right-less are (as always) the bottom-line victims.

2a. [To grasp the magnitude of the problem of corruption here
are some figures: Corruption is worth 400 billion USD/year, i.e,
seven times the entire global budget for development aid; and if
India were to cut its corruption level to, say, Italy's, then
its growth would rise by one percentage point per year].

3. But uprooting corruption is not a solution to HR violations
per-se. You and I know that a substantial, rights-respecting de-
mocracy requires more than that, and more than just formal elec-
tions. And you and I also know that governance by manipulative
means is endemic in many societies with large marginalized popu-
lations in which the institutional tools of formal democracy are
unable to function, precisely because of the poverty and eco-
nomic dependence of the many. Such regimes, unfortunately, have
remarkable longevity --and are the ones that should be our prime
targets in HR work.
To make things even worse, around half of the world's poorest
countries are embroiled in an acute or latent armed conflict.

3a. [Under this scenario, it is not surprising that world hun-
ger, for instance, is rising. A dozen children <5 die every min-
ute from malnutrition-related conditions. 842 million were mal-
nourished in 2003, an increase of 2 million over 2002. Hunger
levels have risen every year since the world Food Summit in
1996. (Jean Ziegler, Special UN Rapporteur on the Right to
Food). That is why the rights-based approach struggles to posi-
tion nutrition as a central development and social justice con-
cern].

4. So, yes, democracies are flawed and imperfect. Under such
circumstances, to claim that they can do something more premedi-
tated than trial and error is often an exaggeration. True reform
processes take more than that. But democracies are also flawed
from the side of their purported beneficiaries. Have you noticed
that once a regulation (often a bad one) has been in place for
some time, its users will evolve in such a way that they will
become political defenders of that regulation? Giving the
right-less legitimate-and-forceful-claiming-capabilities thus
depends on whether we can provide the impoverished with new
prospects --and creating a new consensus on these prospects is a
political task towards democracy.

5. The corollary of this is that building participative systems
of social decision-making is the way ahead to revert HR viola-
tions. Beneficiaries may not always 'know best' but, given their
life experience, they sure do know best who is likely to gain or
lose from reforms in the making --and that is critical. This is
said, not as a crude attempt to gain accolades, but as an appeal
to reason. We must, therefore, not give-in in these efforts even
if we cannot easily reach the end goal. (Interestingly, the
progressive control of more of the needed development resources
through active social mobilization has been said to be a 'weapon
of mass salvation' by no other than Geoffrey Sachs).

5a. [To stay on the issue of development and HR, be reminded
that what we call 'mal-development' started already in the colo-
nial era. Since then, it has become abundantly clear that
states do not fail, political leaders and systems do, either be-
cause they are corrupt, or are incapable, or because 'underlying
conditions are too unfavorable'.and the latter must be carefully
qualified].

6. Reforms in the HR area have sometimes been implemented piece-
meal, tried out on a small scale, and most often not expanded if
they work. (it is like the 'crossing the river by feeling the
stones' of Deng Xiaoping --but never really fully crossing). It
is also true that in HR, as much as in other development work,
one size does not fit all; what works depends on a country's
initial conditions.

7. We often fail to realize that institutions that we have to
deal with in HR work are often a proxy (just a front) for the
political and economic forces behind them. Too often, these in-
stitutions try to make us accept that resource constraints are
immutable, so we wrongly engage in various forms of pat solu-
tions --and disassembling those may sometimes be difficult.
In this time of unprecedented economic abundance, we must rather
-become directly engaged in the underlying contemporary, ongo-
ing, local political debates (Ted Schrecker), and - struggle for
the reforms that tackle the redistribution of resources. And,
keep in mind, the economy is for the people and not vice-versa!

7a. [In Amartya Sen's words: Social and HR changes come best
from public argument rather than from dispensed privileged ad-
vice].

8. Our closest partners in HR work are thus, above all, people,
people's movements and organized communities, trade unions,
health workers unions, teachers unions, civic associations, pub-
lic interest and consumer groups, and other such.

8a. [Our allies are not the 3,000 CEOs of the world's trans-
national corporations and business-interest NGOs or their prox-
ies that meet at the yearly World Economic Forum. UNICEF and
WHO, for instance, should be at the People's Health Assembly and
at the World Social Forum and not at the Davos meeting every
year. (A. Katz) Furthermore, WHO country representatives (WRs)
need to be made to understand by the Director General that not
only governments and ministries of health are their working
partners, but also local civil society organizations and local
people's movements].

9. A new generation of efforts is thus needed. It is our turn to
make the difference. With no grassroots involvement, we will go
nowhere; with it, we can stop or la unch anything. So, if the
determinants of health and nutrition are social and political,
so must be the remedies.

Claudio Schuftan, Ho Chi Minh City
People's Health Movement
mailto:claudio@hcmc.netnam.vn

Mostly adapted from Development and Cooperation (D+C) 31:11, Nov
2004; 31:12, Dec 2004; 32:1, Jan 2005; 32:2, Feb 2005; and 32:3,
March 2005; and Finance and Development (F+D) 41:3, Sept 2004;
and 41:4, Dec 2004.

Food for some assorted thoughts (2)
-----------------------------------

Dear Claudio,

I totally agree with you. I am reproducing a post I made just a
few days ago on: Transforming democracies of the world.

Let me have your views.

Kris Dev
mailto:krisdev@gmail.com

--
Governments should be more transparent and accountable to the
citizens, who are its principal stakeholders.

But unfortunately, there is no single entity who could be held
responsible in Government. No one can be truly held responsible
in a democracy. The responsibility and accountability gets dis-
sipated. The political masters who are expected to be servants
invariably abuse their self assumed authority. There is no check
on them.

The bureaucracy plays second fiddle to the political masters,
for their own well being and survival. There is no clear cut au-
thority, responsibility and accountability. Similar is the case
with judiciary.

What is required in a democracy is clear line of authority, sin-
gle point responsibility, freedom to operate, total accountabil-
ity. All these would be possible, only if there is total trans-
parency in all actions.

This was not possible earlier due to the manual system of file
management in Governments and corporates. Luckily today, we have
the WWW to help in spreading the message of transparency and ac-
countability.

A paper-less communication and collaboration tool is essential
to ensure this. Laws must be enacted for all citizens that any
communications done outside the electronic system shall not be
recognized by law and individuals held accountable for their ac-
tions.

Such an integrated system is possible and has actually been im-
plemented on a trial basis, to promote transparency and account-
ability in governments.

Read the following post:

In India, thinking big by thinking small

By Anand Giridharadas - International Herald Tribune
FRIDAY, SEPTEMBER 30, 2005

http://www.iht.com/articles/2005/09/30/business/wbbank.php

ALANDI, India
http://www.iht.com/cgi-bin/search.cgi?query=ALANDI,%20India&sort=swishrank

With every debit card replaced by a thumbprint, every mutual
fund peddled at a village store and every insurance policy sold
in $2 bits, a new variety of bank is germinating in the bleak,
unlikely soil of rural India.

One in nine human beings is an Indian villager, and 70 percent
of Indian villagers have no bank account, inhabiting a financial
parallel universe in which savings are a gold necklace and loans
come from pistol-packing moneylenders.

As global mega-banks penetrate India, as in other developing
markets like China, these are not their customers. Banks like
Citibank and HSBC skim the top and dip into the middle, serving
as investment bankers to corporations, lenders to a mushrooming
"consumer class" and money managers for a widening sliver of the
fabulously rich.

In India, that leaves 700 million people for the taking. Now, a
handful of domestic banks, led by ICICI Bank, India's second-
largest after State Bank of India, are tapping rural India with
innovative new business models and technologies. And their moves
suggest that while the cream hovers on top, more riches may lurk
below - for those willing to alter their offerings for a radi-
cally new client.

Getting the poor to bank, and bank profitably, could push rural
finance past a tipping point: from philanthropy with a hint of
business logic to real commerce with a hint of compassion.

"You ought to have a commercial justification for doing a busi-
ness," K.V. Kamath, ICICI's chief executive, said in an inter-
view. "You ought to then be able to scale it up."

Those, he said, are the "prerequisites to success" for trans-
forming rural banking from "small, isolated examples of do-good"
to something lucrative enough to take root and spread.

And should the model being field-tested in India prove possible
to replicate, the techniques behind it could help empower the
more than half of humanity living on a few dollars a day or
less.

"As and when an Indian company cracks this and solves the prob-
lem, it can bottle the solution and sell it to the world, be-
cause there will be a lot of places where it is applicable,"
said Nicholas Winsor, head of personal financial services for
India at HSBC Bank in Mumbai. "I'm sure there are going to be
solutions that come out of this that are world-beating."

But HSBC, like other foreign banks in India, is instead focused,
he said, on the emerging "consuming class," which itself encom-
passes 50 million households.

"At some point, you build up a business of such scale and criti-
cal mass that you can move cost effectively into other markets,"
Winsor said. "But it's a big step to move from Mumbai Fort" - an
elite neighborhood in the financial capital - "into a village in
rural India. A standard business model would struggle to do that
and be profitable."

The case of ICICI Bank reveals how local banks are picking up
where multinational banks leave off. Initially, ICICI did rural
banking because it had to. Under government rules, it was man-
dated to set aside a hefty proportion of its overall lending to
so-called "priority sectors" in rural India.

But a few years ago, it began exploring whether this obligation
could be turned into a profit-making center. Facing fierce com-
petition in the cities and wielding "patient capital" - deposits
seeking the highest, not necessarily the quickest, returns -
ICICI decided to make serving the rural poor its long-range
growth strategy.

To symbolize its dedication, ICICI recently made its rural bank-
ing a stand-alone division, removing it from its earlier home in
the Social Initiatives Group.

The division, which oversees micro-finance, agricultural busi-
ness and rural lending, generated 1.4 billion rupees, or $32
million, in net interest income last year, according to manag-
ers, about 5 percent of the bank's total.

The division expects to end the next financial year with 130
billion rupees in assets, about 8 percent of the bank's total
assets in 2005 of 1.7 trillion rupees.

Food for some assorted thoughts (3)
-----------------------------------

Gosh Kris, why not just implant a small chip in the hand or in
the forehead so that government can keep track of everything
that you do? That way no one will go around cutting off thumbs
to access people's money.

I cannot imagine what a rural village in India or any other
country would do with a bank. Most of the time they spend what-
ever pittance that they have on creature comforts such as food
and maybe medicine if they are well off. I do not believe that
rural villages need a bank to leach off of their hard earned
money. What these villages need is an economic plan that keeps
these villagers independent and for the government to leave them
alone.

The difference between a Democracy and a Republic is this: In a
Republic 51% of the people cannot vote to hang the other 49%. A
true democracy is mob rules. A governance that is properly ap-
plied is that corruption where found is punished by prison or
death.

Craig Audiss
mailto:cybrcollectinc@yahoo.com

Food for some assorted thoughts (4)
-----------------------------------

Thanks Craig for your thought provoking thoughts. I have thought
about these points a thousand times.

To my mind, prevention is better than cure. Any amount of educa-
tion is only an intention to make people behave well. See Singa-
pore, a City State, where everyone behaves as a gentlewoman or
man, and even in the dead of the night, a lady can walk or drive
without any fear of being chased, attacked or raped!! Management
by stick.

Every human being deserves a decent living, commensurate with
their efforts. They should not be fleeced by local vendors or
money lenders. Do they have an opportunity to know, at what
price the medicine is bought and sold!! There can be a standard
10% mark-up, if that is the service fee norm!!

Even the poorest of the poor can save a rupee a day, for a rainy
day!! Do we have such systems in place like the Grameen bank, of
poor, by poor, for poor?

My idea is to create one, even if it be by implanting a chip in
everyone's body, as long as you treat a human being honourably.
There is no secrecy in the animal world and they live by the
rules of level playing field created by nature for their sur-
vival and are happy!! Why not human beings with all their inge-
nuity?

Kris Dev
mailto:krisdev@gmail.com