Select Committee on International Development Minutes of Evidence



APPENDIX 4

Memorandum submitted by Oxfam

KEY MESSAGES

  The scale of immediate need is immense, with one million people having left their homes and lost their livelihoods.

  Donors must give reconstruction aid swiftly to help rebuild Mozambique's infrastructure, and to get education, health and other services running again.

  All countries must follow the UK's lead and cancel Mozambique's debt.

  The international community must learn to give humanitarian assistance on time and on the basis of need not media coverage or political or economic interest.

THE SCALE OF CONTINUING NEED

  The political and media attention that is focused on inter-departmental disputes concerning the UK's initial response to the crisis in Mozambique should not obscure the continuing needs of the people of Mozambique. Even before the floods, 70 per cent of the population lived below the poverty line. Ten million people did not have adequate drinking water. Two out of three adults could not read or write, and more than 1.5 million Mozambique children were not in school. As a result of the floods, about a million people have lost their livelihoods, their houses, their tools and seeds and their livestock, leaving them vulnerable—not just now, but long into the future. Beyond this immediate human cost, the floods shattered much of what was a very fragile infrastructure. A poor country, but one successfully overcoming its legacy of war, has been dealt a crippling blow.

  The cyclone destroyed a key rail link on which fuel and goods were brought in from Zimbabwe and South Africa. Hundreds of kilometres of roads—fundamental, among other things, to Mozambique's market reforms—have been washed away, and electricity and telephone lines downed. This damage will cost millions to repair; the Government's early estimate is $250 million. More than 140 schools were destroyed in three provinces by the end of February, and many more will have been destroyed since. Health centres have also been wrecked. The Government's capacity to deliver important social services has been decimated.

 THE BURDEN OF DEBT

  The country has a major debt problem. In June last year, its foreign creditors reduced Mozambique's debt repayments from just over $100 million a year to around $71 million. The country was due to pass through the decision point of HIPC2 (the Heavily Indebted Poor Country initiative) earlier this year. However, the date was pushed back because the World Bank and the International Monetary Fund (IMF) were unsatisfied with the standard of Mozambique's national plan to reduce poverty. The Secretary of State for International Development, Clare Short, said the delay was unnecessary. Countries shouldn't be forced to produce the impossible "perfect plan", she said.

  The new reduction would have taken Mozambique's annual debt service bill to between $45 and $62 million. But even this reduced figure is far too high. For example, the country can only afford to spend $20 million on primary health care and just $32 million on primary education and this before the floods, and the massive clean-up and reconstruction costs it is now facing.

WHAT THE INTERNATIONAL COMMUNITY SHOULD DO

  Donors must give reconstruction aid swiftly to help rebuild Mozambique's infrastructure, and to get education, health and other services running again. If it takes, for example, two years to rebuild destroyed schools, that is not just a delay in recovery—it also means thousands more illiterate Mozambique children. These children will have lost the chance to escape poverty and contribute to the return to the progress that their country had achieved over the past eight years. Donors should pay for the cost of rebuilding schools and health centres and, at least for a period, pay the day-to-day running costs of paying teachers, buying school books and so on. Clare Short's announcement of a further £12 million in emergency assistance on 11 March is welcome; this brings the UK's full commitment up to £20 million, and it is clear that, despite early confusion, the UK has done more than other donors and more quickly.

  Mozambique now needs immediate 100 per cent debt cancellation from both multilateral and bilateral creditors. Debt relief is not an option. It is unacceptable that a country recovering from the devastation of these floods, coupled with long-term major challenges in poverty reduction, should continue to service foreign debt. The UK, having led the way on debt cancellation, should press Mozambique's other major creditors—especially the World Bank the IMF, the African regional development banks, France and Italy—to do the same. The Paris Club meeting of creditors on Tuesday 14 March provides the perfect opportunity to push for debt cancellation across the board.

  Debt cancellation must come from additional resources and not from the reconstruction aid which donors should also give. This will require creditor governments to cancel all debt owed to them, and for governments and the World Bank and IMF to provide the necessary finance to cover multilateral commitments. The HIPC Trust Fund is presently under funded with, for instance, the US resisting such financing. France and Italy are key creditors and must move quickly to full cancellation.

BROADER LESSONS TO BE LEARNED

  While no one could have known how bad the floods would become, it is clear that they were not treated seriously enough or soon enough by donor governments. Early warning systems, including the UN's may well have failed, but the failure of collective will to act early was just as important. It was only when massive media attention focused on Mozambique that western governments really took notice. That occurred because of a fresh surge of water down the Save and Limpopo rivers, but floods had already been going on for nearly three weeks.

  The estimated one million affected in Mozambique are part of a much bigger picture of those affected by natural disasters around the world. Even before these floods, an estimated 135 million people had been affected by climate-related disasters in the last 12 months, from Venezuela to Orissa. To these should be added roughly 35 million people displaced by war, from Colombia to Sudan.

  The international community only responds adequately when either there is huge media attention, and therefore public pressure, or when strategic economic and political interests are at stake. This results in a massive skewing of the delivery of humanitarian aid. In 1999, for example, the world spent more than $200 per head on emergency aid in Kosovo and the rest of former Yugoslavia. In the Democratic Republic of Congo, where over a million people have been displaced by conflict and two million people face serious food shortages, the world spent only $8.40 per head.

  There is not enough emergency aid to meet all needs. As Western governments have got richer over the last decade, the amount of emergency aid they give, measured as a proportion of their wealth, has declined by a third. Among OECD countries, it is now only 0.02 per cent of their gross National Product. Crucially though, this problem, is exacerbated by gross inequality of a response. The lesson from Mozambique should be that the international community, and wealthy governments in particular, must give humanitarian assistance on time and on the basis of need—not on the basis of politics or the vagaries of media coverage. As Clare Short rightly pronounced in February last year: "people in need—wherever they are—should have equal status and rights to assistance". That must apply to the victims of the forgotten emergencies of Africa and elsewhere as much as to those "lucky" enough to suffer in the media spotlight.

Oxfam

13 March 2000


 
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