A child in a forest dependent community in the Democratic Republic of Congo
The statement below was signed by the
heads of six international NGOs:
- Gerd Leipold, International Executive Director, Greenpeace
- Irene Khan, Secretary General, Amnesty
International
- Jeremy Hobbs, Executive Director, Oxfam
International
- Dr. Dean Hirsch, Chief Executive Officer, World Vision
International
- Tom Miller, Chief Executive Officer, PLAN
International
- Dr. Robert Glasser, Secretary General, CARE International
Last week the USgovernment provided another
bail-out of $37.8 billion to the giant insurancecompany, AIG,
bringing the total of rescue loans to that one company in thelast
two weeks to nearly $123 billion. This is $18 billion more
than the annual amount of aid to poor countries and twice
thatneeded to achieve the internationally-agreed Millennium
Development Goals. In Europe the bail-outs have continued. The UK
government has thrown in a further 50billion to recapitalise the
UKbanking sector - which is roughly what's needed for poor
countries to adapt toclimate change each year.
The urgency shown by rich countries to tackle the financial
meltdown standsin stark contrast to their foot-dragging and broken
promises over aid andpoverty alleviation, human rights and climate
change.
It is too soon yet to predict exactly how badly the poorest
countries willfare in the financial crisis and resultant economic
downturn. But it is clearthat reduced demands for exports to
developed countries and lower foreigninvestment will mean less
growth and government revenue for already-fragilesocial protection
and services.
For millions of the world's poorest citizens, it is literally a
matterof life and death. In many countries social safety nets were
dismantled underpressure from international financial institutions,
leaving the vulnerableunprotected. In late September, while Wall
Street was reeling from its financialfailures in the glare of
publicity, a meeting organized by the United Nations inanother part
of Manhattan revealed that very few governments will meet
thetargets set by the Millenium Development Goals to reduce poverty
by 2015, andthat rising food and energy prices have wiped away much
of the progress made sofar.
The human rights prognosis is not good. Not only are economic
and socialrights - including the right to housing, health and
education - coming underincreased pressure, there is a risk of more
human rights violations. As the economy shrinks and countries
tightentheir belts, migrants and refugees could be pushed back to
untenablesituations. Social tensions could increase, leading
nervous governments toclamp down on dissent and impose tough public
security policies, curbing civilliberties. Already fragile states
could be further weakened by the currentcrisis and slide back into
instability and violence.
Worse could follow if rich countries decide to use the financial
crisis asan excuse to cut aid and trade. History gives us cause for
concern. During the1972/3 recession, global aid spending fell by
15% to just $28.8 billion. In1990/3, aid donors slashed their
spending by 25% over a five-year period to $46billion, and aid did
not return to 1992 levels until 2003. Humanitarian aid -what we
spend to help people hit by natural disasters and conflict - also
fell sharplyand over a similar time as a direct result of the
1990-3 recession (only theyears of the Rwandaand Kosovo conflicts
bucked that trend). In terms of trade, for instance,
countriesreacted to the 1929 Wall Streetcrash and global depression
by erecting tariff barriers and world trade fell bytwo-thirds.
A replay ofthat in 2009 would be a disaster for poor exporting
countries.Reduced aid and trade flows could mean that the people in
the poorestcountries pay the highest price for the profligacy of
the credit bubble inNorth America and Europe.
Human rights are not a luxury for good times. Inaction in the
face of climatechange is not a viable option. Global poverty does
nothing for globalstability. Rich countries will befollowing a myopic and
self-defeating strategy if they ignore the most pressingchallenges
of our times and focus solely on narrow financial interests.
This is not just about money. It is about sustainedattention,
international collaboration and clear political will to tackle
bigissues. The signs of concerted action by the G7 finance
ministers and the Eurozonefinance ministers to address the
financial crisis are welcome but they are notenough.
Governmentsmust reduce the volatility in energy prices, food prices
and the financialmarkets by ensuring sensible regulation, adequate
protection for the rights of poorand vulnerable people, and
long-term environmental sustainability. Governmentsmust show
decisive leadership to build a global economy that is green and
wherebetter lives and livelihoods for all is more important than a
system thatrewards a privileged few.