Debate

Staying the course

Considering strengths and interests

Towards a consistent, multilateral policy

No to dubious funding


8-9/2005
 

FDP

No to dubious funding

Development policy must become more aware of partner countries’ responsibility. Governments do not deserve aid if they do not observe the rule of law and market principles. Germany’s development institutions need reform. The Development Ministry should be integrated into the Foreign Office and private contractors entrusted with project implementation. Debt relief in its current form should be discontinued because it does not work.


[ By Markus Löning ]

Any positive development is based on market freedom, the rule of law, individual liberties and the observance of human rights. A country must pursue these goals or it will not be able to fight poverty effectively. Only governments that observe these principles deserve our support. We must expect them to accept responsibility for their citizens’ fate. Development cooperation with countries that fail to act in this sense must be limited or ceased. Germany’s Free Democratic Party (FDP) is demanding a new development policy – with the following core issues:

– The EU must accept that unimpeded access to our markets is the best development policy, enabling developing countries to export goods and thus fund their development without assistance. The biggest potential lies in trade between developing countries themselves. Responsible elites should finally abolish the trade barriers between their countries.
– Cooperation with China, India and other emerging markets needs to be put on a new base. World leaders in biotechnology do not need assistance to fight poverty. Many Asian countries have successfully reduced poverty without aid. Our cooperation with these countries should focus on promising fields such as science, business and culture. Other countries have a greater need for our aid. We should concentrate assistance on countries where the political elite is seriously striving for development.
– Germany should boost support in humanitarian crises and for the fight against epidemics such as AIDS, malaria and tuberculosis. Among other measures, Germany’s contributions to the Global Fund should be doubled. Germany has always been generous in humanitarian catastrophes – a new Federal Government will live up to this tradition.
– International cooperation is not the exclusive domain of the Development Ministry (BMZ), many other ministries are involved too. Currently, there is no political control and the coexistence of ministries results in inefficiencies. The Foreign Office (FO) should be made responsible for overall coordination. The separation of BMZ and FO is outdated. As a single ministry is needed for efficient control of Germany’s international cooperation, BMZ and FO should be merged.
– The structure, requirements and division of work of Germany’s implementing agencies must be reviewed. The FDP is not in favour of merging the KfW development bank and German Technical Cooperation (GTZ), since such a step would create an even larger governmental body. Instead, non-governmental providers should be entrusted with implementing projects. Government agencies should only carry out business activities in very exceptional circumstances.
– The funds for development cooperation are currently not used efficiently. At the same time, the Social Democrat/Green coalition government has been adding some ¤ 50 billion to the federal debt annually. The FDP categorically rejects the notion of generating additional development funds by yet more debt. The issue of generational justice is a another reason for rejecting this strategy.
– The additional sources of revenue currently under discussion are highly dubious. Global taxes cannot be enforced – nor would they ever be under democratic control. Either reason should suffice to rule them out. A tax on airplane fares would penalise those who bring money to developing countries as tourists. The International Financing Facility proposed by Gordon Brown, Britain’s Chancellor of the Ex-chequer, is a bond in disguise.
– Excluding Iraq, the Social Democrat/ Green coalition government has spent more than Euro two billion of the tax payer’s money on debt relief for developing countries – to no avail. Almost all countries concerned are just as highly indebted only few years later. Economic growth did not increase, poverty was not reduced. The FDP therefore demands an immediate stop to debt relief and an accurate evaluation of all countries whose debts have been cancelled so far.


Markus Löning
is development spokesperson for the liberal FDP (Free Democratic Party) in the outgoing Bundestag.
markus.loening@bundestag.de