APC criticizes Aid for Trade Conference

Media Release
July 8, 2009

The militant Asian Peasant Coalition (APC) strongly criticizes the Second Global Review of Aid for Trade held in Geneva , Switzerland from July 6-7, 2009 and its aim of expanding the trade capacity of developing countries.

In a statement made today by Danilo Ramos, APC Secretary-General, he stressed the fact that “Aid for Trade is being used by developed countries as a tool for opening up the markets of least-developed countries for greater trade liberalization. The ‘aid’ WTO Director Lamy is referring to – such as infrastructures, enhanced production and trade-related training will in fact further worsen the economic situation of the developing countries. The already existing WTO, bilateral and regional trade agreements actually resulted to the endangerment of food security and food self-sufficiency in those countries.”

“More specifically, developing countries are heavily reliant on foreign economies and have decreased their investments on local food production. They have also become net importers of food, instead of being able to export their produce” added Ramos. In the experience of peasants, ineffective aid poses great constraints on rural development. These include food aid to make up for the 'deficiencies' in the local market and aid that has supported sham agrarian reform programs.”

In the Asia-Pacific region, the Asian Development Bank (ADB) serves as a platform and channel to mobilize Aid for Trade funds. Moreover, it is the secretariat to the Regional Technical Group for Asia and the Pacific in the Second Global Review of Aid for Trade. Only recently, APC co-sponsored the “Asia-Pacific Peoples’ Tribunal on Asian Development Bank” held in Indonesia which exposed the crimes of ADB against the people through the erroneous policies it continues to adopt.

Erpan Faryadi, APC Vice-Chairperson for Internal Affairs and Alliansi Gerakan Reforma Agraria (AGRA) Secretary-General who served as a witness in the tribunal further said that “loan conditionalities of Aid for Trade leads to higher costs of social services and the infrastructures built that were supposed to ‘develop’ the poor areas resulted to severe environmental destruction and the displacement of numerous communities. Several cases were presented during the tribunal which clearly showed how ADB exacerbated the economic crisis in our region.”

“So that Aid for Trade will be truly effective, it must not be utilized by developed countries to promote their agenda of ‘free trade’”, added Ramos. “It must push for democratic, equitable and sustainable development. Decisions of where it is channeled and its implementation must be controlled by the grassroots communities and basic sectors, as they are the ones most affected by development projects. Democratic ownership of aid should therefore be realized.”###