Better World Economics

Fair Trade guarantees fair prices and wages to producers in underdeveloped poor countries and consequently raises living standards. Fair Trade benefits families and communities, as fair wages pay for essential services, in education and health, for example.

Fair trade is one aspect of the Trade Justice movement, but it is recognized that poor countries are disproportionately affected by other factors which are inextricably linked, - factors such as climate change and the current global finance crisis.

The Great Persuasion is aimed at parliamentary candidates of all political parties. STAND UP against poverty is co-ordinated by the Global Call to Action Against Poverty (GCAP) which is an international alliance of T.U.s, community and faith groups, NGOs and other campaigners. In 2005, it was known in UK as Make Poverty History.

The action suggested by BOND (British Overseas NGOs for Development) is to present a BOND Manifesto to candidates covering a wide range of issues, including increasing aid and debt relief; tackling climate change; reforming the financial system; ensuring that the activities of British companies and investment abroad do not undermine poverty eradication and human rights; and strengthening good governance and tackling corruption.

Candidates could be particularly pressed to make cuts in CO2 emissions of at least 40% by 2020 and to meet existing international aid commitments in line with the Millennium Development Goals.

More information from www.standagainstpoverty.org or www.bond.org.uk

Today’s economic hard times are particularly difficult in underdeveloped countries. The World Bank found that £600 billion will drain from their economies this year, and that the inflow of money will halve in 2009. 100,000,000 people will be pushed into poverty: this means that children will not be educated, mothers will not be able to feed them and farmers will not be able to buy seeds. Sub-Saharan Africa will be hardest hit.

The UN Conference on the World Financial and Economic Crisis and Its Impact on Development in June suggested that the IMF and the World Bank should have major reforms.

Vulture Funds

This is the name given to companies that make a profit by buying up “bad” debts cheaply and then try to recover the full amount, often by suing through the legal system. It’s not good for individuals, but what about for countries receiving development aid?

In 1979, Zambia received a $15 million loan from Romania to purchase tractors and other equipment. Twenty years later, Zambia was unable to repay the money and the two governments were in negotiation to cancel the debt. At this point, Donegal International bought the debt for $3.3 million and took the Zambian government to court, suing it for $55.5 million, money that should have been used to alleviate poverty.

Two thirds of Zambians live on $1 a day, and are in desperate need. In 2005, the country had $6.5 billion of aid debt cancelled to release funds to spend on essential social services, however a significant portion was included in the Donegal International debt recovery.

At least 54 companies are known to have taken 12 of the world’s poorest countries to court, to make a profit on their debts. One fifth of these will be prosecuted in British law courts. Many of the vulture funds are in tax havens with some British connection, so the UK has a key role to play in addressing the problem.

To ensure the Bill is passed into law, it is essential to gain the support of as many MPs as ever possible. EDM 1440 has been tabled for this purpose, so please ask your MP (Michael Foster, in Hastings) to be a signatory.

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