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Common Challenges, Callous Cures ADB and Crises - Economic, Food and Climate Change is an international anti-poverty agency working in over 40 countries, taking sides with poor people to end poverty and injustice together. ActionAid Asia Regional Office 13th Floor, Regent House, 183 Rajdamri Road, Lumpini, Pathumwan, Bangkok 10330, Thailand Telephone: +66 2 651 9066, Fax: + 66 2 651 9070 International Secretariat Office PostNet Suite #248, Private bagX31, Saxonworld 2132, Johannesburg, South Africa Telephone: +27 11 731 4500, Fax:+ 27 11 880 8082 E-mail: firstname.lastname@example.org www.actionaid.org www.actionaid.org Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 01 executive summary contents Hunger is increasing in Asia. The number of food insecure people in different parts of Asia has those chronically hungry or those lacking food increased tremendously; the climate crisis continues security is on the rise due to a three-pronged to spread; and gender inequality persists. crisis — economic, food and climate change. The financial crisis is responsible for falling In adopting the rhetoric of poverty reduction, the income and rising unemployment, although ADB is merely following the lead of its other multi- was responsible for a recent reduction in food lateral peers. The ADB’s poverty reduction strategy Executive Summary 01 prices from an all time high. (PRS) proposes nothing new in terms of understand- ing, or tackling poverty. The Bank uses the rhetoric Farmers in the region are under-planting due to tight of poverty reduction to dress up the only business it credit situation and falling prices of agricultural pro- knows: market based economic growth, liberalising duce. The lives and livelihoods of marginalized peo- trade and investment; deregulation, or minimising Section 1 05 ples, especially those who used to slip into extreme the role of the State in governing the economy and Triple Crises In Asia: poverty intermittently have been further reduced as privatisation, with an ever expanding role for the pri- Poor And Women At The Receiving End a result of climate shock. These poorer sections are vate sector in the production and delivery of goods the ones bearing the brunt of climate change. Need- and services. The strategic goal of these initiatives less to say climate change is the creation of, and is has not been poverty reduction, but the rapid inte- Section 2 being further worsened by, the industrial North and gration of local and national economic activities into ADB Needs Change: Experiences From The Ground 13 its corporations. the global market economy. Far from reducing pov- erty, the ADB’s version of development has contrib- The global financial crisis has hit Asia just when it had uted greatly towards the impoverishment of people barely recovered from the shock of the global food in Asia. It has devastated lives of millions by displac- and fuel crisis. Rising food and fuel prices along with Section 3 ing them through its infrastructure projects. employment insecurity are triggering further inequality Making ADB Accountable To People 31 during an economic downturn. Rising unemployment The policies and projects of the ADB have caused de- nial of rights of the people, particularly the vulnerable and falling household income make it even more dif- ficult for the poor to cope with the challenges. and marginalised section. It has hardly paid attention to human rights aspects of development nor social Section 4 The crises have devastating impacts on vulnerable justice figured in its policies and programmes. Recommendations 34 groups such as seasonal migrant workers, landless, indigenous people, children and women form the ma- The global financial crisis has hit workers in the jority of these groups. Female-headed households are manufacturing sector hard. For example, since 2008 most affected and there is a significant difference in in Cambodia workers in garment factories and con- loss of welfare between the male-headed households struction have observed a massive increase in layoffs and female-headed households. Moreover increas- and a reduction in over-time, which has caused their ing food insecurity has a significant impact on mater- average income to decline. Due to the fall in demand nal health; for example two-thirds of Asian maternal caused by the global financial crisis, approximately deaths have been reported in India and Pakistan. 40,000 garment factory jobs and 15,000 construction jobs have been eliminated as of December 2008.2 Ironically, despite the ADB spending nearly US$130 The sector is expected to shrink further in 2009 by billion1, the Asia-Pacific region remains home to two three per cent and this could mean an additional loss thirds of the world’s poor; the number of hungry and of 19,000 jobs. The bulk of retrenched workers are 02 executive summary Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 03 women. Youth unemployment will increase given that Multilateral banks like the ADB should overhaul their tion of utilities or liberalization of economic policies. services, and immediate measures towards equita- these key sectors are primarily made up of workers funding facilities to align them with nationally defined Conditionality must be restricted to what is neces- ble and sustainable development between the ages of 15-24 years. development models. sary to ensure that aid is spent on its intended ben- The flow of labour into subsistence farming will in- Governments must focus on how to protect the eficiaries, and not used as a lever to press specific 3. National stimulus package: policy choices on recipient countries. All countries should take strong, coordinated, and crease as those retrenched from other major sec- hundreds of millions of small farmers, millions of effective actions to stimulate their economies. Stim- tors such as textile and clothing, construction and tourism will return home to work on the family farm retrenched urban workers and the rural poor, par- ticularly women. They must enable farmers to adapt 4. Ensure transparency: ulus should be timely, have large “multipliers,” that Greater transparency on the part of all parties in re- help address the strains posed by the economic as there are no job opportunities in the city. This will to suitable approaches such as regenerative agri- sponding to the crisis is required. Throughout the downturn on the poor, help address long run prob- reduce per capita income for households due to de- culture and appropriate technologies in the face of project cycle, the ADB should disclose project and lems and prevent instability. clining commodity prices and increasing number of climate change. There must be a statutory social se- programme documents and provide regular updates retrenched workers. Under these circumstances, the living conditions of the poor and marginalised in rural curity and protection system and a complete trans- formation in asset ownership. Such social security on project and programme status, including the infor- 4. Social security and social protection: mation related to its business with the private sector. The ADB must support the governments in establish- areas will be aggravated. and protection should provide sustainable livelihood ing and strengthening social security and social pro- Households begin to experience a fall in income as for the poor and marginalised. 5. Needs accountability: tection, which is long term, developmental and rights migrant workers send home less remittance. Given The ADB must establish a system of democratic, based solution. This must go beyond cash transfers the importance of migrant workers in generating cash accountable and fair sovereign lending that sup- to emphasis public actions that address risk, vulner- Reform of the ADB’s Governance ports sustainable and equitable development. New ability, discrimination and chronic poverty. income and hedging risk for the household, the ru- ral economy will see further contractions in demand, which is already in ruins due to the depressed prices 1. A tripartite review of ADB strategy: The ADB lending rules must take the interests of borrowers into account. More generally, democratic principles, 5. Expansion and improvement of delivery of should review its strategy and operations through of agriculture commodities. A slowdown in economic including inclusive participation in decision making, essential services delivery: a tripartite review of its strategies, policies and pro- growth and reduced income levels will have a nega- should be strengthened and respected. Expansion and improvement of the delivery of es- grammes to explore new policy options, as opposed tive impact on small and medium enterprises (SMEs) sential services and public utilities are required. It is because of the reduction in local demand for goods to the current policies and programmes, based upon the failed model of neo-liberlism. Such review re- 6. Stops displacement: essential that public services are kept in the public and services. The ADB must stop displacing people in the name sphere and out of public-private partnerships or pri- quires the involvement of civil society organizations, of development, as its projects have brought devas- vate hands. governments and the ADB. This review should seek tating consequences to the lives and livelihoods of to gain from local knowledge in the analysis of reform Recommendations programmes and to make space for, and institution- millions due to its infrastructure projects. Food Crisis alize, grassroots involvement in macroeconomic This paper presents the challenges from the three crises and potential policy options to address the and sectoral decision-making. It should facilitate the Financial and Economic Crisis 1. Increased public investment in Agriculture: full participation of those that have traditionally been The ADB must lend support to governments that challenges in Asia. The paper discusses the rela- tions to the policy approach of the ADB. The pre- excluded from decision-making in the assessment, 1. Additional, permanent and stable sources of come up with comprehensive strategies, combin- deliberations, and research of the ADB. The review condition free funding for developing countries: ing interventions in different markets, in favour of monition of evil is that the three-pronged crises may should ensure a human rights and women rights ap- The creation of a new facility is thus a matter of ur- small- farmers. The package should, among others, turn into multiple prongs if the world economic and proach to political economy, so as to understand polit- gency. If such a facility could be created in a timely include increased input subsidies, minimum support political governance is not transformed to develop ical, social, and institutional structures and processes manner, it could be a major vehicle for the disburse- prices, food-grain storage facilities, insurance, risk alternatives to existing policies and programmes. that shape policy decisions and impacts. The results ment of the requisite additional funding, particularly smoothing, guaranteed access of subsidized credit, We strongly advocate for changes to economic and of this review will be the basis for future operations. for the least developed countries (LDCs). Developed employment guarantee schemes, revamped exten- political governance to protect poor and excluded countries must make a renewed effort to meet the sion services, research and development for adap- people from negative implications of the financial, food, and climate crises. 2. Reform of the governance structure: commitments made in the Millennium Declaration, tive technology, and seed protection. The reform of the ADB’s governance structure, in- the Monterrey Consensus, the 2005 Global Summit, The response to the financial crisis must be ground- cluding the voting rights and decision making should and the Doha Declaration by 2015. 2. Sustainable food production ed in new models of growth, as opposed to the cur- be completed swiftly. Elections of the leaders of ADB and innovative technologies: rent failed model of neo-liberlism. It must stem from should take place under an open democratic process. 2. Debt cancellation: The ADB should provide money to governments to national development, the regulation of markets, cor- All debts must be cancelled in order to redirect the invest in new technologies and innovative practices porate accountability and the ability of public institu- 3. Ending policy conditionality:There should be fund to much needed government resources to based on local knowledge that would reduce farm- tions to fulfil their mission to provide public goods. an end to the practice of tying ADB loans to privatiza- counter the economic crises, for essential social er’s dependency on imports and decrease the usage 04 executive summary Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 05 i of synthetic inputs that are harmful to soil and the en- to clean energy and energy efficient solutions—both vironment. Organic food production, multiple crop- for preventing climate change and for developing triple crises ping strategies, livestock production system should energy independence and ensuring the security of be strengthened to enhance food sovereignty, soil developing countries’ energy supply. quality and reduce vulnerability to climate shocks. Genetic engineering and chemical intensive agri- 2. Pledge new and additional resources for culture must be rejected as these are mechanisms mitigation and adaptation purposes, accounta- in asia that are not only environmentally unsustainable, but ble to UNFCCC. also foster the monopolisation of products needed Though specific estimates vary, the cost of mitigating section for industry-led production. and adapting to climate change will be enormous. Poor And Women At The Receiving End Donor countries may dismiss the estimate of $67 3. Impose restriction on speculation billion per year by 20203 as unrealistic, or point to and moratorium on bio-fuel: the impact of the 2008 global financial crisis on their The reason for rising food prices is vulnerability in capacity to respond. But the fact remains that they financial capital markets, and increasing use of ag- are bound by the framework convention to respond riculture land for agri-fuel products. Any irregularity to the adaptation needs described in this report, and It is the system under which we live region are now at stake, due to the crises that have in these markets affects cereal availability for con- they can use a variety of innovative mechanisms to [that is on trial today]. It has broken been manufactured by the current capitalist economic sumption and pushes up their price. Since the ADB generate new and additional adaptation funding of at system. The ongoing financial meltdown has further down…it has broken down every- is also involved in capital market development in least $86 billion a year by 2015.4 Therefore, instead where, as it is bound to breakdown. aggravated the economic and social conditions of the many countries, it should support governments to of creating its own adaptation mechanism, the ADB people who have already been plagued by the food restrict speculation and encourage governments to should pledge its resources to a mechanism which is Ramsay Macdonald crisis due to the unbridled price hikes that peaked impose moratoriums on bio-fuel production. accountable to the UNFCCC. UK Prime minister, 1930 in 2008. While the decrease in food production and 4. Regional corporation 3. Agriculture should be recognized as most To keep options open until circumstanc- food availability has become a threat to the capacity of affected communities to exercise their right to food, to fight against food crisis: vulnerable sector to climate change and farmers es make change necessary. There is climate change is causing further drastic decreases Countries extensively dependent on imported food should be given especial support. enormous inertia – tyranny of the sta- in food production in the developing world. The three should use strategic reserves to tackle the food cri- Agriculture is the most vulnerable sector to the im- tus quo in private and especially gov- crises are having devastating impacts on people’s sis. Countries with abundant rice production would pacts of climate change especially for developing ernment arrangements. Only a crisis ability to claim their rights and the ability of govern- need to change their attitude in favour of a more hu- countries’ which have a high dependence on agricul- –actual or perceived – produces real ments to provide accountable, open and transparent manitarian objective rather than pursuing trade ob- tural production. It is therefore important to identify jectives. For example, the East Asia Emergency Rice the responsibilities of both international organisa- change. When that crisis occurs, the governance. The premonition of deeper crises is that Reserve (EAERR) is an emergency rice purchasing tions and national governments to ensure food se- actions taken depend on the ideas that the three-pronged crises may turn into multiple prongs programme rather than a pool or aid programme for curity and sustainable agriculture practices in the are lying around. That, I believe, is our if the world economic and political governance are not the region and the mechanism and fundamentals of developing world. basic function: to develop alternatives transformed to develop alternatives to the existing this type of reserve has to be changed. The SAARC to existing policies, to keep them alive neo-liberal policy framework. Food Bank must start its operation with a food re- 4. Active participation of women from affected and available until the politically impos- An ActionAid study reveals that the number of hun- serve of two million tonnes of rice and wheat. communities and civil society. sible becomes politically possible. gry and food insecure people in the Southeast Asian Many poor communities already have ideas and countries could rise to 112 million or 28 percent due mechanisms for adaptation to environmental chang- Milton Friedman Climate Crisis es in their specific contexts. Their active involve- Capitalism and Freedom, 1962 to price escalation.5 A similar exercise conducted for South Asia shows that the number of hungry and ment in developing strategies would help the effec- 1. Stop financing fossil-fuel extraction: tive disbursement of funds, and promote an effective The poor, marginalised and women are at the receiv- food insecure people could leap to 588 million or 31 percent.6 This situation has revealed the fragile bal- The ADB and all other IFIs must stop financing fos- management, monitoring and evaluation system. sil fuel extraction, especially coal and oil activities Therefore the representation of the marginalised ing end in Asia as the three-pronged crisis – financial, ance between the global supply of food and people’s as these hasten climate change and environmental people should be mandatory in articulating and im- food and climate - looms large. The UNESCAP has needs. It has exposed the fact that our leaders have degradation which particularly affects poor people. plementing national and local adaptation policies referred to the crisis as a “triple threat to development” not lived up to their promises to accelerate progress Instead, the ADB should promote an urgency to shift and programmes. in its latest Economic and Social Survey. The liveli- towards the eradication of hunger through agricul- hoods and well-being of 4.1 billion people of the Asia tural and rural development. 06 triple crises in asia Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 07 4.1billion 30 .740 C o people of the Asia region now have their livelihoods and well-being at stake one way or other, due to the crises that have million people in the region could become increase in the average global surface environmental refugees in the next temperature in the last century; been manufactured by the current capitalist thirty years. estimated by UNESCAP economic sysytem. be affected by the water stress; 30% of Asia’s coral on water resources in Asia. The availability of fresh Nature and Severity reefs could disappear in the next 30 years; and at least 30 million people in the region could be dis- water in Central, South, East and South-East Asia, particularly in large river basins such as Changjiang, of the Crises 2008 was particularly due to the dramatically high placed by climate change.9 is likely to decrease due to climate change, along with population growth and a rising standard of living global prices of important food items. This adversely The global climate change problem has originated that could adversely affect more than a billion peo- impacted upon national food security for food deficit from the inception of the industrial revolution in the ple in Asia by the 2050s. According to the IPCC, wa- Food Crisis countries, which in turn affected the food security of vulnerable groups within countries. developed world. Emissions trading programmes, that have been orchestrated to mitigate the problem, ter and agriculture sectors are likely to be the most sensitive to climate change-induced impacts in Asia. also place the burden on developing nations. Car- Whilst demand-supply imbalance was presented as The following scenarios are also likely to happen: bon trading programmes allow developed nations to one of the main reasons for the food crisis in 2008 , 7 severe losses in agricultural productivity because of it is now widely acknowledged that financial specula- Climate Crisis shirk the obligations embodied in the common but differentiated responsibilities and developed country extreme weather conditions, severe drought, flood- tion was one of the major factors behind the sharp ing, soil degradation, and glacier melting, increased leadership principles.10 price rises of many primary commodities, including The global climate has changed dramatically in re- sea-levels, typhoons and storms,13 to name a few. agricultural items over the past year (UNCTAD 2009, cent decades and continues to do so at a rapid pace. The developing world has seen drastic decreases Therefore, climate change negotiations hide a major IATP 2008, 2009, Wahl 2009). In addition, supply Surface temperatures have been rising and the in- in food production as a result of climate change. question on the rights of the poor and the marginal- factors have been – and are likely to continue to be crease in the surface temperature in the Asia region ActionAid’s field work confirms that a decrease in ised in regions with no responsibility for ecological – considered significant. These include the short-run is much higher than the global average while the food production is already occurring.11 In Bangla- debt as the poor in these regions face the most im- effects of diversion of both acreage and food crop mountain glaciers and the ice caps have been de- desh, for instance, seasonal droughts and flooding mediate and severe human costs as a result of cli- output for bio-fuel production, as well as more me- clining and the sea levels have been rising. Accord- due to climate change are intensifying and having a mate change. The prevalent climate change narra- dium term factors such as the rising costs of inputs, ing to UNESCAP estimates, in the last century, the significant effect on agricultural production, livestock tives suggest and promote policies that are unequal falling productivity because of soil depletion, inade- average global surface temperature has increased population, employment and health. The findings in terms of the distribution of impacts, responsibili- quate public investment in agricultural research and by 0.740 C. In the last 50 years, surface warming confirmed that the associated decline in crop pro- ties, cost and benefits commensurate with the shift extension, and the impact of climate changes that has doubled and the mean temperature increase duction, loss of assets and lower employment oppor- in the role of the state, capital and nature. It is impor- have affected harvests in different ways. Moreover, in Asia and the Pacific has far exceeded the global tunities contribute to increased household food inse- tant to further analyse the climate change issue and the perennial negligence of the agriculture sector trend. Recent estimates indicate that the global av- curity. Food consumption falls, along with the ability understand the complications behind it and assess and the marginalization of small farmers through the erage temperature by the end of the century could of households to meet their nutritional needs on a the solutions touted by “specialists” and “experts.” dictates of the international financial institutions and rise 20 C or 30 C, or even as much as 60 C.8 sustainable basis.12 There has been a reduction in the international trading system have deepened the agricultural output in Australia as a result of climate The widespread changes in extreme temperatures crisis in recent years as more food secure countries Financial Crisis change induced drought that has had a substantial are causing longer droughts, warmer winters and have been plunged into food insecurity. impact on the global supply of food commodities colder days and nights – and floods, storms and such as wheat. While these remain urgent issues that require glo- cyclones have become more frequent and intense. Asia is exposed to yet another crisis arising from bal and national policy interventions, the intensity of The UNESCAP has estimated that due to higher The Intergovernmental Panel on Climate Change has the US economic and political ascendancy over the the food crisis that hit many developing countries in temperatures, a billion people in the region could reported on the potential impact of climate change whole world in general and US profligacy and poor 08 triple crises in asia Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 09 Impact of Economic Crisis on Labour Sector in Cambodia governance over the global financial regulations in will have on demand in the US will only aggravate particular. The financial crisis that began with the the global recession. There is evidence that the bankruptcy of Lehman Brothers on September 14, global recession led by the contraction in the US is The garment industry remains the major contributor to economic growth in Cambodia and is the main sector for 2008 has now spread all over the world. The crisis now transmitting itself through global trade. Export employment. Due to the fall in demand caused by the glo- has worked its way through the Asia region and has growth from the developing economies is expected bal financial crisis, approximately 40,000 garment factory had deep repercussions on financial systems and to fall by -0.8 per cent in 2009 compared to a posi- jobs and 15,000 construction jobs have been eliminated real economies. With American consumer demand as of December 2008.15 tive 9.6 per cent and 5.6 per cent in 2007 and 2008 plummeting, China and East Asia have seen their respectively. Fixed Duration Contract (FDC)/short contract: The goods rotting on the docks, bringing about a sharp current effort from the Garment Manufacturer Associa- Whilst the task of identifying vulnerabilities contin- tion of Cambodia (GMAC) to push for an amendment to contraction of their economies and massive layoffs. Cambodia’s labour law on contract employment heightens Data released in recent months by the US Bureau ues, the evidence released to date has indicated that concerns about the need to protect worker’s rights. Such the global crisis is worse than ever anticipated. The Women will be further marginalised: After a decade of of Labour Statistics notes a rise in unemployment an amendment will give more flexibility to employers to double-digit growth, driven by the manufacturing, construc- rate to 7.6 per cent from 7.2 per cent while non-farm IMF in its latest Update to the World Economic Out- legally oppress workers. Contractual employment was im- tion, and tourism sectors, the Cambodian economy is pre- unemployment has declined by 3.6 million since the look states: “Global economic activity is expected to plemented for the last few years after the end of MFA, and dicted to contract significantly in 2009. Shrinking demand has been used as a tool to get rid of worker rights. Some start of the recession in 2007. The impact that this contract by 1.9% in 2009. Advanced economies are from US and EU markets has already forced 60,000 job union and civil society organizations (CSOs) have come losses in the garment sector. Reduced foreign direct invest- together to oppose this initiative by releasing a joint state- ment has seen a further 25,000 jobs lost in construction. ment to the government. The government is yet to respond to this statement. Around a third of Cambodia’s 13.4 million people currently Table: Asian Development Outlook 2008 GDP (%) live below the national poverty line. Without a formal social In November 2008, employers in the garment manufactur- welfare system, there are concerns that the global eco- 2003 2004 2005 2006 2007 2008 2009 ing sector in Cambodia sounded the alarm. 2009 was not nomic crisis will reverse positive trends and push greater promising to be a good year for employers in the industry numbers of Cambodian women and children into poverty East Asia 7.3 8.4 8.3 9.1 9.3 8.1 8.2 due to the sudden bankruptcy of their main foreign clients and hunger. and the major drop in orders. The situation led Van Sou China, People's Rep. of 10.0 10.1 10.4 11.1 11.4 10.0 9.8 Ieng, Chairman of the National Association of Employ- Fewer urban jobs equates to fewer remittances sent home Hong Kong, China 3.0 8.5 7.1 7.0 6.3 4.5 4.8 ers in the manufacturing sector, to ask workers to avoid to rural areas, where 80% of Cambodians live. 1. 5 mil- engaging in any social movement to prevent the situation lion rural people depend upon migrant remittances (mostly Korea, Rep. of 3.1 4.7 4.2 5.1 5.0 5.0 5.2 from worsening. from women) as their major source of income. Early indi- South Asia 7.8 7.3 9.0 9.0 8.4 7.6 8.1 cations show that many unemployed workers are return- Several important union confederations mentioned their ing to their villages, where livelihood opportunities outside Afghanistan 15.1 9.4 16.4 6.1 13.9 9.0 9.0 categorical opposition to a project presented by the Cam- subsistence agriculture are severely limited. To survive, bodian Ministry of Labour regarding employment contracts Bangladesh 5.3 6.3 6.0 6.6 6.5 6.0 6.5 more and more Cambodian women and children may and ammendments to Articles 67 and 73 of the Labour find themselves in the informal economy for lower wages, India 8.5 7.5 9.4 9.6 8.7 8.0 8.5 Law. This reform was originally requested by employers in poorer conditions, and greater risk of sexual exploitation garment manufacturing factories who wished to reduce the Nepal 3.8 4.4 2.9 3.1 2.3 3.8 4.3 and trafficking. cost of their workforce by advocating, like in the rest of the Pakistan 4.7 7.5 9.0 6.6 7.0 6.3 6.5 region, greater labour market “flexibility”. (Source: http:// There are fears of many poor families will adopt “un- ki-media.blogspot.com/2009/04/global-financial-crisis-is- healthy” coping measures such as reducing their number Sri Lanka 5.9 5.4 6.2 7.7 6.7 6.0 6.0 adversely.html) of meals per day or eating less nutritious foods; cutting back on health services, removing children from school to Southeast Asia 5.4 6.5 5.7 6.0 6.5 5.7 6.0 Job loss: During the first two months in 2009, textile ex- work, and selling household assets or land. This concern portations plummeted and several dozens of factories had Cambodia 8.5 10.0 13.5 10.8 9.6 7.5 7.0 is supported by the 2008 National Anthropometric Nutrition to close down due to a lack of orders, thus leaving more Survey, which showed an increase in acute malnutrition in Indonesia 4.8 5.0 5.7 5.5 6.3 6.0 6.2 than 50,000 workers jobless. (Source: http://ki-media.blog- poor urban children aged under five years -linked to higher spot.com/2009/04/global-financial-crisis-is-adversely.html) Lao People's Dem. Rep. 5.8 6.9 7.3 8.3 8.0 7.7 7.8 food prices and reduced earnings among the urban poor. Exports facing risk of further decline: According to the Malaysia 5.8 6.8 5.0 5.9 6.3 5.4 5.9 Maternal mortality in Cambodia is already unacceptably GMAC chairman, textile exports suffered a 30% decline in high, with five Cambodian women dying in labor every day. Myanmar 13.8 13.6 13.6 12.7 - - - January compared to the same period of time the previous With even less income to pay for food and health services, year. The decrease in exports continues to deteriorate and Philippines 4.9 6.4 4.9 5.4 7.3 6.0 6.2 the UN fears more women will forego nutrition and health could reach 40% during the next quarter, compared with care during pregnancy, exacerbating maternal and neo- Singapore 3.5 9.0 7.3 8.2 7.7 5.2 5.8 exports for the same period in 2008. As approximately one natal mortality rates. hundred factories have closed since late 2008, according Thailand 7.1 6.3 4.5 5.1 4.8 5.0 5.2 to GMAC, 10% to 20% of those still operating active risk (Source: UN News: 08 April 2009 - In Cambodia, women Viet Nam 7.3 7.8 8.4 8.2 8.5 7.0 8.1 closing by May/June this year. (Source: http://cambodia. and children hit hardest by Economic Crisis http://content. ka-set.info/economics/news-textile-garment-manufactur- undp.org/go/newsroom/2009/april/in-cambodia-women- Source: http://www.adb.org/media/Articles/2008/12437-asian-gdp-comparisons/ ing-crisis-gmac-unions-strike-dismissals-090402.html) and-children-hit-hardest-by-economic-crisis.en) 10 triple crises in asia Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 11 expected to contract 4% in 2009. Japan and the euro commodity prices and the increased labour supply. vironment degradation and poor people are particularly zone will suffer the sharpest downturns. U.S. GDP will Under these circumstances, the living conditions in adversely affected.17 continue to contract, albeit at a slower pace through- Climate Change, rural areas will be aggravated. The global financial crisis has hit the Asia region at out 2009, with negative growth in every quarter. Ex- port-dependent Asia’s growth will slow significantly to Global Financial Crisis A study by Oxfam and ActionAid Viet Nam study es- the time when it had barely recovered from the shock timated that a 10 per cent rise in food prices would of the global food and fuel crisis. Rising food and fuel less than 3% in 2009. China will have a hard landing with GDP growth falling to 5.5% while India will slow and Food Security: increase the average household welfare by 1.7 per prices along with employment insecurity are among cent and lead to a 0.6% decline in the national pov- the factors leading to increasing inequities during this sharply to 4.3%. All four Asian Tigers (Singapore, Tai- wan, South Korea and Hong Kong) as well as Malay- Impact on the erty rate. A 10 per cent increase in the price of rice economic downturn. Increased unemployment and sia and Thailand will experience recessions.” Poor and Women alone will raise the average household welfare by 0.6% and decrease the national poverty rate by a drop in household incomes also make it difficult for the poor to cope with these challenges. An IDS study The ADB’s revised outlook also shows a downward 0.1%. However, the benefits of food price hikes do based upon information from DFID’s offices in Bangla- trend for developing Asia. The ILO estimated that Poor and vulnerable groups such as small not spread evenly to all groups of the population, as desh, India, and Pakistan estimates that the economic unemployment in Asia-Pacific in 2009 could increase it was also estimated that the 10% increase in the crisis has returned 100 million people to poverty and by between seven to twenty-three million workers.14 farmers, seasonal migrant workers, the price of rice would reduce the welfare of rural house- indicates that in some cases poor households are tak- Lower incomes and high inflation will lead to pos- holds by 54%, and by 92% in urban households. 16 ing children out of school to save money, and families, sible cuts in social sector spending primarily health, landless, children, and women are con- especially women and girls, are eating less or lower One of the greatest obstacles to ending poverty is education and social protection in many countries, quality food, leading to concerns about malnutrition.18 stantly facing the hardships of economic, climate change. Climate change will have a pro- especially low-income countries. It could also lead to found effect on many people in the region, partic- In Bangladesh, Nepal and Bhutan, the crisis is impact- a decline in ODA from affluent countries. climate change and food crisis. ularly the poorest in the least developed countries ing on export revenue, remittances, tourism receipts who depend on climate sensitive activities, such as and external financing for infrastructure. A large number agriculture, forestry and fishing, and who lack the re- of migrant workers of Bangladesh are losing their jobs sources and options for mitigation and adaptation. and returning home and a downwards trend in remit- Impact on Poor In Vietnam, 73 per cent of the population is suffering tances is visible in the economy, which is shown in the from the negative impacts of climate change and en- figure below. The food crisis and the associated price escalation hit the poor and the vulnerable the hardest since a large percentage of their income is spent on food compared to that of the well-to-do. This is also vis- ible within Asian Countries. Singapore, for example, 60 spends an average of only eight percent of its in- come on food, comparing to 28 percent in China, 33 50 percent in India, and around 40 percent in Vietnam, 40 Percent 73% according to the U.S. Department of Agriculture. The losers are also the landless people, people without 30 access to agricultural production, and the unskilled 20 Growth of labour force in rural areas. Most of these people Remittance have to buy cooking oil, rice and firewood from the 10 in Bangladesh: market, and these are now three times more costly. FY 2008 - 2009 of the population in Vietnam is July August Sep Oct Nov Dec Jan Feb March suffering from the negative impacts The flow of labour into subsistence farming will in- of climate change and environment crease as those retrenched from other major sectors degradation at which poor people such as textile and clothing, construction and tourism are particularly adversely affected. will return home to work on the family farm if there are no job opportunities in the cities. This will reduce per capita income for households due to declining 12 triple crises in asia Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 13 Impact on Women Women comprise around 730 million of the Asia Pa- cific’s total workforce of 1.9 billion, as estimated by ILO. The majority of workers in agriculture and ex- port manufacturing are women. They have less ac- cess to education, property rights, credit, farm input and extension services compared to men. Female-headed households are affected more by food price increases. There is a significant difference 730 million of the Asia Pacific’s total workforce is comprised of women, as estimated by ILO. adb needs change Experiences From The Ground section ii There is a general conviction that the impact of the economic, financial, social and environmental crises have been heightened due to the faulty policies and programmes of the lending agencies which have As women in developing countries are mostly de- intruded on the national policy sovereignty of developing economies in Asia, Africa and Latin America. in the loss of welfare between male-headed house- pendent on primary resource, environmental haz- This section examines how the ADB's policies and programmes are aggravating the present crises holds and female-headed households in SAARC ards disproportionately affect women. Women mor- using illustrative case studies of a number of Asian economies. countries. In this region, female-headed households tality rates outnumber male mortality rates in differ- are over-represented among the poor or, equivalent- ent natural disasters that have occurred in the Asia ly, are more likely to be poor.19 The welfare losses ADB approach to or gains due to staple food price increases, however, region over the past few years, including the Tsu- nami in 2004 and Cyclones in Bangladesh. Women 1. ADB’s “Poverty Reduction Strategy” do not seem to be equally distributed among female- and male-headed households. For example, in the are also deprived of information regarding climate Development Strategy in the Tonle Sap of Cambodia rural areas in Bangladesh and Pakistan, the welfare protection, and are excluded from decision making due to their lack of access to information. and Poverty Reductions! The ADB has used poverty reduction to justify its effect is high as poorer households spend a greater involvement in the Tonle Sap [the Tonle Sap Lake percentage of their income on food than richer ones. Global estimates demonstrate that 35.4% of the ag- The ADB’s focus on poverty reduction prompted the is the largest freshwater lake in the Mekong re- Therefore, in Bangladesh and Pakistan where fe- ricultural workforce and 18.3% of those employed bank to introduce Poverty Reduction Strategies in gion. It provides food for millions of Cambodians, male-headed households are poorer, it is expected in industry in Asia are women. The impact of the 1999. It claims that all its other strategic objectives— as well as being an important source of revenue that their welfare losses would be higher. The in- recent financial crisis has fallen predominantly on economic growth, human development, sound envi- generation that contributes towards the Cambo- creasing food insecurity has a great impact on ma- these women. Moreover the rise in the global un- ronmental management and improving the status of dian economy] through the use of the "poverty re- ternal health particularly in India and Pakistan where employment rate from 5.7% in 2007 to 6.0% in 2008 women—will be pursued in such a way that they di- duction strategy". The ADB often attempts to link two-thirds of Asian maternal deaths are reported. includes some 81 million women. rectly contribute to poverty reduction. 20 But the ADB the prevalence of poverty to environmental de- has had spectacular failures in reducing poverty as struction (ADB, 2005). To improve environmental the case study on Tonle Sap Lake in Cambodia il- management around the Tonle Sap Lake, the ADB Table: Gender Bias in Poverty and Welfare Effects of Staple Food Price Increases lustrates. has proposed a number of projects including the "Participatory Poverty Reduction Assessment of Country Urban Rural National In adopting the poverty reduction rhetoric, the ADB the Tonle Sap" and "Tonle Sap Sustainable Liveli- is merely following the lead of the World Bank and Share Over- Welfare Share Over- Welfare hoods Project". Share Over- Welfare FHH represented Share its other multilateral peers who successfully negoti- FHH represented Share FHH represented Share (%) among poor higher (%) among poor higher (%) among poor higher ated the transition in their rhetoric a long time ago. Blaming the poor for environmental destruction The ADB’s PRS proposes nothing new in terms of does not help the environment or poverty reduc- Bangladesh in 2000 7.7 - - 5.9 MHH FHH 7.6 MHH FHH understanding, or tackling poverty. It uses the rheto- tion efforts. Although the proposed ADB poverty ric of poverty reduction to dress up the only busi- reduction projects appear sound, the Bank's ex- Pakistan in 2001 6.3 MHH - 6.7 MHH FHH 6.6 MHH FHH ness it knows: market based economic growth, the perience in poverty reduction raises many doubts liberalisation of trade and investment; deregulation, and questions. The reason is because the Bank FHH stands for female-headed households, and MHH stands for male-headed households. * Poor households identified as those with per-capita expenditures below 2 Purchasing Power Parity dollars in 2000 prices. or minimising the role of the State in governing the still believes that economic growth can reduce ** Or welfare gains lower. economy and privatisation, with an ever expanding poverty through a "trickle down effect", which is Source: FAO; 2008 role for the private sector in the production and de- totally unrealistic. The pro-poor economic growth Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 15 The Karnataka Experience: Safeguarding Its Interest at the Cost of Urban Poor There has been a long debate in Karnataka about the quality of ADB projects. People vehemently strategy of the ADB for the Tonle Sap seems to livery of goods and services. The strategic goal of opposed the arrogance of ‘expert consultants’, completely disregarding the need for peoples’ participa- follow the development model suggested in the these initiatives has not been poverty reduction, but tion. ADB’s implementation of its Safeguard Policies has been receiving public critique. ADB-funded 1970s and 1980s and although there was eco- the rapid integration of local and national economic urban development projects in Karnataka do not show any encouraging experience. nomic growth in this period, it didn’t reduce pov- activities into the global market economy. Far from erty (Chamber, 1985). Many civil society groups reducing poverty, the ADB’s version of development Projects, which according to the ADB, would have • The urban development projects failed to ensure are concerned that Cambodia, which is an agrar- posed considerable small impacts only during the five interventions mentioned in the policy. has greatly contributed towards the impoverishment project implementation. Even though such projects ian country, will over-exploit its natural resources of people in the Asia.21 Involuntary Resettlement Policy: could have accelerated urbanization process, the The Involuntary Resettlement Policy (1995) was from the lake to promote rapid economic growth, conduct of Environmental Impact Assessment Despite the ADB spending nearly 130 billion US$ brought in August 1995. The observation of its im- although ultimately this cannot be sustainable or (EIA) was not made compulsory. plementation reveals that: to date,22 the Asia-Pacific region remains home to equitable. • The ‘external’ consultants’ project design re- two thirds of the world’s poor; the number of hungry • The ecological use of land acquired for project sulted in over estimation of available resources components was not considered. The use of words such as “environment” and “pov- and food insecure people in different parts of Asia and did not consider waste impacts and land use erty reduction” in the Tonle Sap Initiative have been have tremendously increased; the climate crisis con- change. • The delays of project implementation negated the ecological functions of the land. used to justify the development of larger, potential- tinues to spread in Asia; and gender inequality per- • Long-term productivity of the ecosystem was ig- ly damaging infrastructure projects. Proper support sists. Different research suggests that not only has nored. • The policy did not consider the inconveniences caused and the displacement due to the solid for the environment could be seen as nominal and the ADB been unable to demonstrate the achieve- • Monitoring and evaluation of compliance on the waste dump yards. the Bank uses the word "environment" simply as a field was weak. ment of its poverty reduction mission, its projects • The policy did not consider that the project has strategy to support infrastructure development. and programmes have had a negative social and • Change in legislations and market-based instru- caused displacement. ments caused tree felling. environmental impact on poor and marginal com- • The policy did not consider that urban projects munities. This failure can be partially attributed to • Public consultations were poorly conducted and Source: Tonle Sap Watch, ADB and Natural could create migration into cities. the implementation of the Public Communica- the ADB’s growth-oriented development paradigm Management in the Tonle Sap, 2007 tions Policy was weak. Spending pattern on poor: and top-down development strategies as opposed Indigenous Peoples Policy: • The slum residents in specific and the citizens in to pro-poor and grassroots based policies which The Bank did not observe its own IP Policy (1998) general have been excluded largely from plan- promote sustainable development. Additional invest- in the implementation of its funded projects. The ning and monitoring of the physical works as the ment in the ADB’s growth led model during the three following were observed during project implemen- tasks are managed by the Project Implementa- pronged crisis will lead millions of people in the Asia tation: tion Unit (PIU) and Design and Supervision Con- sultants (DSC). region towards further impoverishment. • The urban poor were not involved in the project • The high cost of public goods, like public toilets, • According to project documents, 30 percent of construction of community toilets in private com- the beneficiaries are urban poor. However, it has pounds and slum improvement has benefited in- US $ 130 not been recognized that there are indigenous dividual beneficiaries rather than the community. communities in urban areas. This has raised the concern if the benefits would • The projects neglected the scheduled castes really reach the ‘poor. (SC), scheduled tribes (ST) and other marginal- billion ized groups in project towns. Source: Excerpts from, ADB, Safeguarding Its Interest: The Karnataka Experience, by Gururaja Budhya, Urban Re- approximately spent so far by the ADB on the Asia- search Centre, available at http://forum-adb.org/Articles/200712-Bankwatch_3.htm Pacific region yet it remains home to two thirds of the world’s poor. 16 triple crises in asia Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 17 2. Liberalisation bottom of the income strata, it may not make any discernible in-roads in alleviating poverty. 24 can only be achieved when there is a strong private sector. According to the Bank, the private sector can ity, health services, and education are involved. The investigation by the Ecological Recovery and Re- generate employment and income, which, in turn, gional Alliance (TERRA) found that the privatisation The ADB has been promoting a trade and economic Our research has indicated that there is little evidence addresses poverty indirectly. The ADB is also pro- of water in Thailand, supported by the ADB, largely liberalization policy for decades. It assists develop- that free trade can lead to poverty alleviation. For ex- moting the direct involvement of the private sector in benefited domestic and international private com- ing member countries to attain private sector and ex- ample Nepal rapidly opened its markets to free trade, a number of sectors e.g. in the provision of physical panies as there is no real competition in the water port-led economic growth by promoting competition but has a very poor record on poverty reduction and and social infrastructure and the provision of basic sector. The government granted a full concession to and integrating the countries with the world economy economic growth. On the other hand, countries such services. In the past, ADB private sector operations the sole company that produces tap water and dis- by focusing on trade liberalization; the moderniza- as Taiwan and South Korea chose to protect their do- have been concentrated in capital-intensive areas, tributes raw water for tap water production in each tion of free trade policies; the facilitation of trade mestic industries rather than completely open their particularly telecommunications, water, power gen- province. At the same time, farmers have to bear the and export; and the development and implementa- economies to global trade. When they did choose to eration and chemicals. costs of water development schemes which would tion of investment policy. Its liberalization policy has open up, they did it on their own terms and at their increase agricultural production costs. also covered programmes in the agriculture sector own speed. This not only produced higher economic However, there are examples in many countries and rural development, education, water supply and growth, but resulted in lower poverty and inequality. where despite significant private sector growth and In Nepal, the privatization of water supply services sanitation, and infrastructure (transport and energy). A free trade agreement therefore has the potential employment generation, poverty remains and in is a result of the conditionality of various loans and Rhetorically, the liberalization policy should reduce to create job losses, government revenue losses some cases worsens. In addition, the benefits of technical assistance projects of the ADB, with co-fi- the governmental burden, increase the efficiency of and cuts in public services (as developing countries economic growth do not necessarily trickle down to nancing from donors such as the Japan Bank for In- public utilities, private sector participation and ulti- are forced to open up their markets before they are the poor. Economic growth does not necessarily lead ternational Cooperation (JBIC) and the Nordic coun- mately reduce poverty. In the agriculture sector the ready); corporate domination as developing coun- to a more equitable distribution of income and assets tries. Consequently, the poor people were made to tries’ ability to regulate big business is restricted; and in the absence of specific measures addressing eq- ADB aims to help small-scale and marginal farmers pay 600 rupees per month for water services when weakened democracy as governments are prevented uity issues. India is an example of such inequalising improve productivity and profits. the average monthly income of the poor is only 300 from choosing their own development strategies.25 growth and increased deprivation. rupees.27 While access to clean water is a human The ADB’s neo liberal approach to development is The impact of privatization is very sensitive espe- right, ADB’s policy has directly hampered people’s reflected in its long-term strategic framework (LTSF) 2008 - 2020.23 The strategy aims to create a busi- 3. Privatisation cially where public services such as water, electric- rights to basic services and development. ness-friendly environment and increase public-pri- vate partnerships to at least 30% of total activities by and Deregulation Table: ADB’s Investment in private sector, energy 2020. The ADB will increase its support for the re- sector, (between January 2000 to March 2006) The global financial crisis resulted in shortages of gion’s private sector significantly, both in the number financial resources, increased unemployment and Amount (in mn us$) Percent of ADB-financed projects and in its share of ADB’s an- grave social and environmental impacts for the hard- nual operations with a target of 50 percent by 2020, Coal 399 200 000 6.71% est hit countries. In addition the impact of the other which presently stands at around 12 percent. Whilst two crises - climate change and food insecurity – Oil 34 325 000 0.58 the ADB has claimed that its corporate vision under suggests that it is likely that poverty in vulnerable Gas 1 105 545 000 18.58% Strategy 2020 will continue to be “An Asia and Pacific economies will further worsen. The IMF, World Bank Region Free of Poverty”; it has been widely argued Hydro 334 848 000 5.63% and the ADB have always turned to the private sec- among civil society that the strategy reiterates the tor to lead economic development and neglected the Renewable energy 242 050 000 4.07% ADB’s prejudice towards particular paths and inter- (off grid, biomass, micro-hydro, wind) critical regulatory role of the State. There are underly- ventions, which have been criticized to be anti-poor ing problems in the public sector such as corruption, Energy efficiency and conservation 2 220 000 0.04% and far from community and environmental friendly. (demand side) market distortion, weak regulatory frameworks, poor In reality, there is a limited connection between trade enforcement in the domestic financial market and Clean Development Mechanism 2 225 000 0.04% liberalization and poverty reduction. Even if trade lib- weak governance that discourage economic growth Grid expansion and 1 777 523 000 29.88% eralization is linked to more rapid growth, this does and sustainability. These weaknesses need to be electrical transmission measures not necessarily imply that it is an effective instrument addressed as a priority although the ADB, together Energy sector reform 051 695 000 34.48% for reducing poverty. For instance, if a growth strat- with other international financial institutions, believes egy based on trade openness leads to a significant that poverty can only be reduced when there is a TOTAL 5 949 631 000 100.00% worsening of income inequality of households at the strong economy with high growth rates, which in turn Source: Irrelevance Leadership: The Asian Development Bank and Climate Change, Greenpeace International, April 2006, 18 triple crises in asia Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 19 ADB Displacing People 4. Utility Crisis and Since the early 1990s the ADB has pushed for clos- er economic integration amongst the countries of and Forcing Resettlement Sufferings of the Poor the lower Mekong Basin together with Yunnan and Guangxi Province of China, under its Greater Me- The ADB financed utility services across Asia suffer kong Subregion (GMS) programme. The GMS pro- The Cambodian component of the Asian Development Bank-funded Highway One Improvement Project from the same debilitating condition. Without mar- gramme, with its emphasis on large-scale infrastruc- resulted in the relocation and impoverishment of approximately 1,200 households (estimated 6,000 ket discipline or public oversight, utilities across Asia ture development and natural resource exploitation, people) living along the road. In 2004, the ADB finally performed an audit of the project – which con- have become bastions of cronyism and inefficiency. has increasingly become a threat to the ecological firmed many of the issues affected communities and local nongovernmental organisations have been Investment decisions were driven by political patron- integrity of the Mekong river system, undermining raising since 2000 – and urged the Cambodian government to implement measures in order to bring the age rather than the needs of ordinary citizens. The the well-being of the millions that depend upon the resettlement process in compliance with the ADB’s Policy on Involuntary Resettlement. following case studies illustrates how the poor have river and its natural wealth.28 been suffering from ADB financed utility services. The regional power grid is one of the flagship ini- Table: Forcing Resettlement tiatives of the ADB's GMS programme, which is supposed to encourage cooperation and economic Case Study I Existance of Proponent Resettlement Use of force Case Mitigation Measures growth in the six countries sharing the Basin.29 Ac- cording to the ADB, the Mekong power grid will 46 households within None Private People temporarily relo- 11 people injured, provide significant economic benefits for individual Phnom Penh city limits Developers cated 20 kilometres waay homes burned down. countries; reduce national investments in the power (January 2004) from original residence. reserves maintained to meet peak demand; provide 220 households of None Local People resettled 20 Eight people arrested, a more reliable supply of electricity, including pow- Thmey community Authorities kilometres waay from three people injured. er supply from an interconnected network in case in Phnom Penh & Private original residence. (August 2004) Developer of power failure; reduce operational costs; reduce greenhouse gas emissions and other pollutants; and 218 households in Exist Local Undecided Six people killed, increase consumers' access to the cheapest and Kbal Spean village Government three injured, all of Poipet Banteay homes destroyed. most environmentally-friendly sustainable sources Meanchey province of electricity. The construction of large scale infra- (March 2005) structure projects will also create jobs and employ- ment. These promises were far from reality. 246 households in None Local None Three people injured. Kratie province Authorities (November 2004) The ADB has promoted dam building in the upstream countries along the Mekong and its tributaries. Build- ing dams has caused serious downstream impact. Flooding and drought resulting from dam building In Cambodia, sufficient compensation is not provided, to say nothing of respect for fundamental human has occurred every year in Cambodia. While pro- rights, and there is no end to land grabbing. According to the “Housing Rights Taskforce” (in which NGO and international organisations are members), of the roads, canals, lakes, private lands and railways moting dam building in the upper Mekong countries, subject to various projects for 2005-6, 53 poor communities (4,771 households) in Phnom Penh alone ironically the ADB has suggested further investment are to be effected. Source: Housing Rights Task Force in flood control and irrigation systems in Cambodia. Similarly, the ADB pushes for protecting the Great Mekong Power Grid Lake Tonle Sap, especially the fishery and wetland Source: Challenges for Implementing ADB's Resettlement Policy in Cambodia: The Case of Highway One, by Rena resources, while the impacts of the dams in the up- Sugita, available at http://forum-adb.org/pdf/PDF-Other/WS_MekongWatch_HW1.pdf The Mekong River is the heart and soul of mainland stream countries on the Great Lake have badly af- Southeast Asia. Over 60 million people depend on the fected the livelihoods of the communities.30 Mekong and its tributaries for food, water, transport The ADB is now pushing for the Stung Chinit wa- and many other aspects of their daily lives. ter diversion project. The two major environmental 20 triple crises in asia Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 21 concerns associated with the project are the impacts The donors including the ADB and World Bank claim of the restored fisheries weir and the impact of the use of pesticide and fertilizer on people’s health. The that they have advocated for regional power trade in the GMS as a means to move away from hav- Case Study I I bank did not take into account the fisherfolk’s opin- ing one ‘state-owned electricity supply regime’ which ions as they assumed that the diversion weir would monopolises the electricity supply. The revenues Kali Gandaki ‘A’ Project in Nepal improve the fisheries. The fish pass structure design from the power sales will also be used for poverty The Kali Gandaki ‘A’ (KGA) 144 MW in the western region proposed by the bank will not ensure its effective- alleviation in the countries. In reality, the construc- of Nepal is the country’s largest hydroelectric project, ness, and experience at Pak Mun dam in Thailand tion of large scale infrastructure projects will lead to has shown nothing but failed promises and disap- the over-centralization of power production and in- and was built with conditional loans from the ADB and pointment for the affected communities. This project creased dependence on remote large-scale hydro Japan Bank for International Cooperation (JBIC). will submerge the agricultural lands of the people, dams, thus increasing the system’s vulnerability to Kali Gandaki ‘A’ project was may increase land speculation and it will be difficult drought and grid failure. The concentration of owner- implemented with a lot of misleading to secure land for the resettlement.31 The ADB’s project completion report claims that the project comprised the following key pledges The Bank did not components: take into account the 1. a 44-m high concrete gravity diversion dam and fisherfolk’s opinions gated spillway, and an adjacent intake and de- especially, for people who were scending basin; affected by the project. with their assumption that the diversion weir 2. a 5.9-km long concrete-lined headrace tunnel with a diameter of 7.4 m; improves the fisheries. Stringent conditionality, corruption, and a lack of transparency choked the Kali Gandaki ‘A’ project. 3. a surge shaft, pressure shaft, tunnel leading to The project also engendered insecurity and settle- the power station and the power station; ment problems for the poor and caused environ- 4. hydraulic steelworks including the supply of mental degradation as a whole. For example, one of ship in the hands of the few utilities with the techni- gates for the spillway, desander, headrace tun- the primary conditions to get the ADB assistance for Who Gained cal and financial capacity to handle mega projects and operation of the regional grid has implications nel and power station, as well as the steel liners for the pressure tunnel; the project was to increase power tariffs in addition to the lending agencies own operational condition- in the Mekong Power Grid for affected communities. 33 In essence, the power ality e.g. procurement policy etc. to implement the 5. electrical and mechanical plant and auxiliaries and Hydropower projects? grid directly benefits hydropower developers, inves- tors, and power monopolists who could control and for the three 48-MW turbo-generating units, project. During the implementation phase, public consultation was limited and no room was given to transformers, and switchgear to be installed at manage the generated electricity while there is little the people who questioned the efficiency and fea- It is evident that the ADB’s master plan for Region- the power station; and evidence that the affected communities are properly sibility of the project. Kali Gandaki 'A' project was al Power Interconnections and Power Trade in the compensated for livelihood losses, poverty allevia- 6. two 132-kilovolt (kV) transmission lines, one to implemented with a lot of misleading pledges, espe- Greater Mekong Sub-region will contribute to its tion or environmental protection. Pokhara (61.4 km) and the other to Butwal (44.3 cially, for people who were affected by the project. public-private venture. While the ADB staff spent the km). The report also claims that it can meet dai- As the project faced severe protests from the pub- last decade promoting a greater Mekong sub-region Moreover, many hydro projects do not produce en- ly peak load requirements year-round with an lic, it was completed through deployment of secu- powered by hydro projects, the ADB sees its role as ergy for consumption in the country. The energy output of 144 MW. The plant was designed to rity forces from the then Royal Nepalese Army, the mobilizing public investment for the GMS dam and produced by most of the hydro projects in Laos is produce an annual average of 842 GWh of re- Armed Police Force and the Nepal Police while the transmission lines with funding from its specially cre- meant for export, especially to Thailand and Viet- newable energy, providing much-needed power vested interested groups were allegedly bribed. In ated GMS portfolio. Mobilizing private capital sim- nam. The government is supposed to receive rev- to meet the country’s electricity demand. It be- sum the project was dedicated for profiteering of ply means encouraging or directing private capital enue that is generated in taxes, royalties, dividends gun in 1997 and completed in 2002, this project the multinational company like Impregilo Company, investment to ADB preferred projects by providing and other payments. However, money alone will not is considered as a costly and delayed one com- which violated national laws and intrigued with public subsidies to them in the form of grants and cheap be enough to reduce poverty in the countries if a pared to the original forecast. interests. loans32 or otherwise the project could not attract number of harmful policies and initiatives continue to commercial financing. be supported by the government and donors. 22 triple crises in asia Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 23 Water-Logging An estimation3 suggests that 5,100 traditional fish- will aggravate the erfolk will lose their right to fishing, 25,000 HH de- pendent on wetland will lose their access to com- impact of sea level rise mon property resources, 330 HH will be evicted from their existing homestead and around 30,000 HH of Case Study III the agricultural farmers will face inundation of their cropland. Hera Amamgo Kotha Shunbo na, ko hono shuneynai. Amagore jole vashai dibar lagi ei project [they (project proponent) would not listen South West Water Resources Management Project in Agriculture farmer to us. They never did so. This project has been Bangladesh lose their agriculture designed to inundate us] land due to probable Sowkat Hosssain (35) from Chachuri bazaar expressed The ADB funded ‘South West Area Integrated Water salinity intrusion his opinion with grievance Resources Management & Planning Project (SWAI- WRMP2)’ was initiated to rehabilitate and upgrade … if ADB does not support the project and pact zone. It has already been experienced in similar The intention of the project is to drain the small area the existing flood control and drainage/irrigation of inundated land through an integrated water re- the BWDB does not implement it quickly enough, floodplains and surrounding areas wherecorporate schemes in the food zone of the northern southwest farmers drove out the small farmers with their large sources management system but IRT anticipates the I shall put salt in my lands myself and grow investments. effects of the rise in the sea level will expose around region in the Chenchuri beel (wetland) and Narail shrimp”. 100,000 people to water logging. Due to rising sea Although the project is intended to create an flood beel (wetland) to initially benefit about 0.8 million levels, there will be a ‘head difference’ in water levels Claimed, Mostofa (55), controlled irrigation system for farmers, previous inside and outside the polder system as the project rural population. But in reality this project will aggra- a wealthy farmer in favour of this project and shrimp experience suggests that the predicted reduction of cultivation. At a later stage the Independent Review area falls within the tidal zone of Bangladesh (which vate salinity intrusion and create water-logging and Team found him as a member of the local Water Man- these wetlands by ADB has been considered as an is why the southern sluice is an integral part of the agement Association (WMA) indicator for more crop production as this reduction ul- thereby promote a corporate shrimp culture. This will project). Increased water logging within the polder timately balance with the creation of F1 and F24 type system will only enhance vulnerability to inundation create a knock-on affect for food insecurity in the high crop lands. Under the changing climate, a size- along the low-lying southern crop lands which will Once crop lands are affected by salinity, either the able shift in salinity front will take place (CEGIS, 2006) region and consequently put pressure on the whole therefore be aggravated further. According to pub- farmer has to stop cultivation of boro crop in the dry and will ingress gradually from south to north and af- lished literature (CEGIS, 2006; Huq et al., 1999), the country’s food reserve. season and will lose a significant livelihood, or they fect croplands converting into the corporate shrimp rising sea level will decelerate drainage and cause have to consider investment intensive shrimp cultiva- production zone. The project may also cause cata- water logging within the embankment systems along tion. In the process around 30,000 HH may directly strophic drainage congestion due to silt in in the river the coastal rivers. be affected which amounts to 2/3 of the project im- channels, outside polders and along the sluice gates. effects of sea level rise that exposes around 100,000 2 - Since the inception, the project did not consult multi-stakeholders, while the question of transparency, accountability and people’s participation has been a matter of concern all through the projects life. Under the banner of rehabilitating the existing faulty compo- nents of Khulna Jessore Drainage Rehabilitation Project (KJDRP), Coastal Embankment Project (CEP) and Flood Control and Drain- age (FCD)I projects, it will end up creating similar errors as they use the same structure to mitigate disasters. This project started in mid 2006 and is estimated to be completed by June 2013. Initially, it covers 57,000 ha land of 3 upzillas in Narail with an aim to work in 5 more districts. Estimated cost of the project is US$43.4 million with participation from ADB, Government of Netherlands and Govern- ment of Bangladesh contribution, with 46%, 29% and 25% share respectively. people to be affected by water logging. 3 - The Independent Review Team (IRT) was formed to assess the impact of the project. The review report is attached in the annexure. 24 triple crises in asia Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 25 Traditional fisherfolk Lack of Compatibility: Technological backwardness leads the ADB to in- and affordable energy supplies for inclusive growth in is in fear of being ousted crease the funds available for hiring foreign techni- a socially, economically, and environmentally sustain- from existing livelihood cians for the operations and to maintain the import- ed technology. The past experiences of the FCD/I able way.34 The new policy specifically promotes en- ergy sufficiency and clean and renewable technology. projects demonstrates that most of the imported tech- This policy will help the ADB to meet energy security nologies are of western origin which are either not and facilitate a transition to a low-carbon economy to so suitable for the local environment or backdated. realise the ADB’s vision of a region free of poverty. The project intends to enhance the livelihood opportu- However the compatibility of those equipments with The ADB has stated that it will maintain its current po- nities of the fishing community. Instead the project will local settings is not assessed well and as a result, sition on non-involvement in the financing of nuclear create a catastrophe for 5100 HH traditional and poor environmental deterioration takes place. In the same power generation, coal mine development (except for fisher folk’s who will lose their ancestral livelihood. time a huge amount of money is invested in foreign substantial use by thermal power plants), and oilfield The community will be further affected by the prob- mation of WMA’s requires an “up-front cash contribu- consultants who are appointed to operate and main- development (except marginal fields). able eviction of approximately 300 HH due to the new tion” to make them sustainable for the Operation and tain those technologies. construction of physical infrastructure and excavation Maintenance (O&M) aspects of WMA’s. This automat- of canals. Capital intensive culture fisheries will affect approximately 25,000 HH who will lose their access ically marginalizes the poorest as they will not be able to pay and this will further excludes them from access Disaster Legacy: A number of streams and rivers were naturally con- Hydropower to common wetland. to what was previously a “common property resource” nected with the Chenchuri Beel and Narail areas of is not Pollution Free and therefore the poor will loose their access and the the South West region. The streams/rivers which The livelihoods of these people depend on open- thriving fish culture business will be confined to the The study by Environmental Defence has found originated elsewhere were used to pass through the water capture fisheries throughout the project areas a connection between dams and the emissions local elite (AAB, 2006). region and carried a huge amount of silt. A portion of during the monsoon season and in perennially sub- of the potent greenhouse gas methane. Meth- the silt, especially the finer particles, lay in the Beel ane is a greenhouse gas which is more powerful merged areas and local rivers/canals during the dry WMA’s will actually have the influence to decide to and elsewhere in the vast floodplains of the Bengal than carbon dioxide as methane traps heat and season5. The ADB emphasizes the importance of a allow saline waters to penetrate through the canal/ Delta. The tidal interactions played a vital role in main- therefore has a larger impact than carbon diox- Water Management Association (WMA) to form fish- river systems through its control and operation of the taining the sedimentation balance in the floodplains ide. The problem with methane is that methane is ery subgroups with “priority membership for the poor southern sluice gates. This will in turn allow wealthy produced by plants and animals that rot underwa- who have lost access to floodplain fisheries”. The for- of Bangladesh as this was a part of a wider process farmers to convert paddy fields into shrimp zones6. ter and once water goes through hydropower tur- which guided land formation in the coastal region. As bines, methane is released into the atmosphere these natural outlets were closed without adequate . The master plan for the GMS hydropower plant provision for inflow/outflows the beds of the channels could also mean a significant increase in meth- through which the water was passing were quickly ane emissions. silted up. As a result the outflow of water was blocked The research conducted by the Foundation for and water logging conditions now occur in the area. Ecological Recovery has disclosed the adverse impacts that large dams have on biodiversity. It 5. ADB’s policy and is clear that the ADB’s support for the large hy- dro dam built on the Mekong tributaries, such programmes exacerbating as the Theun-Hiboun on Thuen River in central Laos, has modified the natural flow of the river, climate change impacts damaged or destroyed critical aquatic habitats and obstructed the movements of fish between The ADB’s climate change activities are guided by its seasonal habitats. The result has been the de- energy and environmental policy. The bank vows that cline in fish stock and the loss of livelihood and income security for communities upstream and its latest draft energy policy, an updated version of the downstream of the dam. 1995 energy policy, aims to provide reliable, adequate, 6 - It is understood from the experiences of a similar situation in Shyamnagar, Islampur and Munshiganj thanas of Satkhira District, how salinization has helped rich farmers to become richer and has forced existing fisherfolk and poor farmers to migrate out of the area due to 4 - Land susceptibility to flooding is graded from F0 (less than 0.3 and flood depth) to F3 (1.8 to 3 m flood depth) a complete collapse of livelihood and lack of alternative income-earning opportunities in the new industry. Self proclaimed and he owned 5 - The project intends to use submerged lands (most of which are currently khas lands owned by the government) for agriculture by 27 acres of land within the project area. draining out submerged lands and wetlands. 26 triple crises in asia Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 27 In reality, this policy has paved the way for the ADB to to rural livelihoods and ecosystems. The Theun- to the soil helps replace lost nutrients and aids plant expand its coal mining activities and oilfield develop- Hinboun Hydropower Project, funded by the ADB, growth. In other instances, however, acid deposition ment projects across Asia. The burning of coal and oil, has provided energy which has driven vast increases has thrust around 30,000 Laotians deeper into pov- erty by depriving them of the natural resources upon can cause lakes and streams to become acidic, dam- age trees and other plants, damage man-made struc- Dual Impact in wealth and productivity, but has also fuelled climate which they depend.38 Though many groups warned tures, and help to mobilize toxic compounds naturally of Climate Change change. 35 While the international community is de- the ADB of the negative impact of the construction present in soil and rocks. 41 and Food Crisis manding a reduction in fossil fuel extraction, the ADB and argued that the project served the interests of In the UNEP Greater Mekong environmental outlook under the disguise of its climate change language the dam building industry at the expense of local 2007, the GMS programme being pushed by the ADB continues to support the programmes that will further communities, it didn’t stop the ADB from funding the was created only for economic cooperation. There is damage the climate. project. Consequently, the project has had serious no local ownership and there is no regional institution impacts on the lives and livelihoods of people living Large hydroelectric power plants have become pri- to deal with the environment. The UNEP report added downstream and upstream of the dam who have lost orities in the ADB. The latest energy policy propa- that economic growth, coupled with growing popula- fish, rice fields, vegetable gardens and drinking wa- gates the idea that hydropower saves consumption of tion pressures, has also led to widespread pollution, ter as a result of the project. The project has caused scarce fossil fuels and dams can prevent floods and land degradation and depletion of natural resources. erosion and flooding in the Hai and Hinboun river ba- provide water for irrigation purposes. However, the Unless addressed, these changes may cause irre- sins. The flooding has also caused water contamina- research conducted by International Rivers has found versible ecosystem damage with far-reaching impli- tion, livestock deaths and other hardships for villag- that the few large hydropower projects now in opera- cations for economic activities that depend on natural ers living downstream. Water fluctuations have re- tion in Laos, such as the Houay Ho and Theun-Hin- resources.42 portedly resulted in the deaths of several people.39 boun dams, have increased poverty for tens of thou- sands of Laotians. Villagers who have been resettled have not had their incomes restored to previous lev- 2. Impact on Environment 3. Water Insecurity The power grid can also have an impact on water els. Other villagers have lost important fisheries, rice Grid interconnections have the potential to cause pollution, including erosion and water pollutants pro- fields and riverbank gardens, but have not received air pollutant emissions and greenhouse gas. Mod- duced as a result of power line construction and op- sufficient compensation or replacements36. est quantities of emissions may be produced during eration, and incremental water pollution from power power line construction, but the main influence of Capital-intensive hydropower and mining projects plant construction, power generation, and fuel extrac- grid interconnections on air pollutant emissions will generate limited employment and are not the best tion/storage.43 be through the impact of transmission interconnec- means of promoting broad-based growth or improving tions on where and when certain power plants are An investigation conducted by International Rivers human development. The UNDP’s Human Develop- run in the interconnected nations. Where hydroelec- has revealed that the construction of Nam Thuen II ment Report states that the export of minerals, timber tric generation, for example, provides export power In a household of Dhaka (Capital of Bangla- hydro project, the largest dam in Laos, has become and electricity has “lower potential for human devel- through an interconnection and displaces existing or desh), migrants who left their village after the another example of a two-speed infrastructure project opment” as these sectors are “capital intensive, use planned fossil-fueled power plants in the importing river flooded their land in 2007 describes their in which social and environmental programmes fall much less labour, and may damage the environment, country, net emissions benefits will occur in most condition as below: behind while construction proceeds on schedule.44 local livelihoods and other exports.” Since mining and cases. The net air pollutant emissions benefits or More than 10,000 people have been affected by the hydropower concessions reduce the availability of costs for individual countries depend on which power “ I haven’t had a full stomach for months. When construction of Nam Theun 2’s transmission lines, cultivatable land—a major cause of poverty, accord- plants run more, or less, in the presence of the inter- the food prices were high, we used to have two roads, and project facilities, losing land, assets, and ing to a 2007 poverty assessment—the trade-offs that connection, and where those plants are located. 40 meals a day. At morning, after whatever was access to natural resources. Households in Gnom- these projects involve need to be more closely exam- left from the previous day’s meal, me and my malat District near the Nam Theun 2 power station ined.37 The followings illustrate how the ADB’s various Some photochemical smog and other air pollution mother went out to work. We used to skip our have been the most severely affected. projects exacerbate the environment as well as harm impacts can, at times, be sufficiently widespread as lunch and eat in the evening after my mom got the livelihoods of the rural poor. to be nearly regional in nature, arguably the major One of the major threats to downstream villages when back from work and cooked.” regional air pollution impact is acid precipitation, Nam Theun 2 starts operating is the quality of water 1. Livelihood Destruction: sometimes called “acid rain”. The effects of acid rain vary considerably with the vegetation, soil types, that will pass from the reservoir through the power station, into the downstream channel, and then to the Source: Accounts of Crisis: Poor People’s Experiences of There is evidence that hydropower projects have cre- the Food, Fuel and Financial Crisis in Five Countries, and weather conditions in a given area. Under Xe Bang Fai before eventually reaching the Mekong. Institute of Development Studies, UK ated uncompensated losses and unmitigated impacts some conditions, the addition of sulfate and nitrate 28 triple crises in asia Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 29 Experience with tropical reservoirs, including some in a day or only every other day. High prices for staple Its resettlement measures have brought more misery Laos and Thailand indicates that biomass should be removed before the area is flooded to prevent the rot- crops should ultimately benefit all producers. However, small-scale farmers face steep barriers to increasing to the affected communities due to the loss of land and natural resources that has resulted in food inse- Case Study IV ting vegetation from polluting the stored water. The their production because of decades of failed donor- curity and indebtedness for the locals. failure to do so poses significant risks to the livelihood driven agricultural policies, which have dismantled the ADB Support for ActionAid Vietnam has conducted a survey on climate programmes proposed for both Nakai Plateau reset- structures that gave small farmers access to credit, Vietnamese Education tled villagers and villagers living downstream. In this inputs and technical assistance.47 In summary, price change and its impacts on food security in Ha Tinh Vietnam has achieved significant progress in attaining case, biomass clearance was likely too late to prevent volatility in global food markets already constitutes a province. The study highlighted the issue of food in- significant water quality problems.45 serious threat to the right of poor and excluded peo- security for the affected communities and at the same the Millennium Development Goal (MDGs) and the Vi- ple to healthy and nutritious food. That threat will only time emphasized community self resilience through etnam Development goals (VDGs), according to ADB grow as the impact of climate change on rain-fed ag- disaster preparedness efforts. 4. Climate Change and Food Security riculture increases. Therefore the impacts of climate change are so se- sources. For example gender equity and universal pri- Although projections suggest that climate impacts will mary education has largely been achieved.49 Another impact of climate change on food security is vere, and resources so scarce, that rural communi- vary geographically, analyses by the Food and Agri- the increasing production of bio-fuels. Global climate ties who have been affected by the ADB’s projects in culture Organization of the United Nations (FAO) and change and sharply rising energy prices have forced different regions of developing Asia are exposed to the International Institute of Applied Systems Analysis the public and private sectors to look for alternative multiple vulnerabilities. It is therefore necessary to (IIASA)have attempted to pinpoint the likely regional energy sources to replace the use of fossil fuels. have policies and supports for their adaptation. These impacts of climate change on agricultural productivity Consequently, there has been a boom in the renew- supports aim to not only solve short-term damagee and food security. Their work suggests that, on bal- able energy sector and biofuel production and con- but also take the long-term livelihood of local inhabit- ance, developing countries will lose out due to an in- sumption in the past two decades. The sudden and ants into account. crease in arid areas in coming decades: “The FAO/ IIASA study indicates that the developing world would dramatic growth in demand for biofuels is thought to experience an 11% decrease in cultivable rain-fed have been the most important single factor behind the land, with consequent decline in cereal production... food price crisis, at least for its effect on current prices In the case of Asia, the impact of climate change is and market speculation. IFPRI estimates that biofuels have increased food prices by 30 percent (a World 6. ADB’s Investment mixed: India loses 125 million tons, equivalent to 18% of its rain-fed cereal production; China’s rain-fed ce- Bank study put the figure at 75 percent). ActionAid in Social Sector calculates that, globally, 30 million more people are Grant - 0.81% real production potential of 360 million tons, on the now hungry as a result of biofuels and a further 260 The ADB has long believed that large scale infra- other hand, increases by 15%”. 46 million are at the risk of hunger. structure development especially in transportation Loans - 93.87% ActionAid’s field work reveals that decreases in crop and communication is the key to the development production are happening already. In addition to the Recently the ADB has highlighted the concerns of of the region. This ADB policy has led to a reduction Private - 2.11% stress of decreasing yields, poor people have been climate change as a major issue that needs urgent in assistance to the social sector, particularly educa- doubly hit by the recent volatility in food prices. Food attention in some of its borrowing countries e.g. tion and health. ADB has been carrying out various Technical assistance - 3.21% prices have been rising since 2000, reaching a peak Bangladesh, Viet Nam etc. In the Viet Nam Country projects in different developing countries, but there in 2008. By early 2008, rice and wheat prices had sky- Strategy paper, the bank acknowledges the fact that are no net gains from the projects for the develop- Figure: Structure of ADB finance for Vietnamese education rocketed (60 per cent and 89 per cent increases re- “about 72% of Viet Nam’s population lives in coastal ing countries. We will now present a number of case spectively) compared with levels in 2007. While com- and delta provinces, and the Red River and Mekong studies on some projects in developing countries and The ADB has provided Vietnam with a total amount of modity prices began to decline in late 2008, many of River deltas provide most of the country’s food sur- critically analyze the outocmes of the projects US$ 6,496,302,263 as loans or grants, over the last the factors that led to high prices are still in place. plus. The impact of a 13-94 cm rise in sea level by 15 years50. Out of this amount, US$ 2.8 millions were Food price volatility, which could be compounded by 2100 could cause extensive saltwater intrusion and grants; US$ 7.25 millions were loans for private sec- increasing climate variability, will likely continue to be reduce a significant portion of agricultural lands. It is tor51 ; US$ 11.055 millions were provided for techni- a serious problem for the foreseeable future. ironic that several ADB investments in Vietnam and cal assistance; and US$ 323 million as loans to the the Greater Mekong Sub-Region have adversely im- Vietnamese education system. However the funds al- ActionAid field work confirms that many people who pacted the environment.48 Many of the mega projects located for education were comparatively small, and used to eat two meals a day are now eating only once supported by ADB have caused man made disasters. only totalled 5.29% of the total amount. 30 triple crises in asia Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 31 The ADB provides significant support in terms of tech- The ADB’s projects have not been able to demon- nical assistance to the education sector in Viet Nam. strate sustainable change in the developing countries iii of Asia. Developing countries do not have enough The master plan of ADB for secondary education resources to invest in their social sectors, such as under technical assistance grants did not reflect the health and education. The multilateral organizations, adb Government of Vietnam’s plan for the education sec- as has been the case during the SAP era, and is likely tor. This table shows the list of loan projects provid- making to be followed now, cut their support to the social sec- ed by ADB. The latest master plan was designed in 2008 with limited consultation or coordination with the tor, which might make the situation even worse. accountable to Government’s team for the new strategic plan for the education sector that covers the period 2009-2012. Donors believe that Vietnam has made significant Impact of Global Crisis on Education and Children people section achievements in achieving improved access to pri- In Bangladesh, parents reported difficulties in mary, and to a certain extent to secondary education. maintaining education expenditure, decreas- The ADB currently has 67 members. The highest decision making tier at the ADB is its Board of Gov- This has driven the ADB and the donors to shift their ing absenteeism and school drop outs. Child ernors to which each of the ADB’s 67 members nominates one Governor and an Alternate Governor policies towards the support of secondary education. labour is believed to have risen. Examples to represent them. The Board of Governors meets formally once a year at an Annual Meeting held in a can be given of incidents of children going to With the shift in the ADBs focus to secondary educa- work in brick fields after dropping out of school. member country. The Board of Governors elects a 12 member Board of Executive Directors. The Board tion, realising the MDG for education is blurred. Job Some children were moving to cheap institu- of Governors also elects the President who then chairs the Board of Executive Directors and follows its losses of migrants will result in high drop out rates in tions including church schools, madrassahs primary schools. Moreover there is insufficient sys- directions in conducting the business of the ADB. While the ADB Charter states that the President must and other institutitons that provide food and tematic evaluation on the effectiveness of the ADB’s be from a regional member country, it is traditionally from Japan as the largest regional shareholder. This other material supports. technical assistance (TA) in the country. Foreign TAs Source: is part of an unofficial agreement to carve up the leadership of global multilateral institutions. Under this often fail to understand the culture and operate effi- Accounts of Crisis: Poor People’s Experiences of ciently, fail to build local capacity and fail to transfer the Food, Fuel and Financial Crisis in Five Countries, arrangement America has leadership of the World Bank, a European heads the International Monetary Institute of Development Studies, UK skills to their local counterparts. Fund, and Japan leads the ADB.52 Table: List of loan projects conducted by ADB in Vietnam Like other IFIs, the ADB is governed on a “one dollar the best way to develop, and are likely to favor priva- one vote” principle. In others words, the more money tization and liberalization policies. Japan, somewhat Amount Year of approval you put into the ADB (or the more a member contrib- contrastingly, favors state led infrastructure oriented Lower Secondary Education 50,000,000 2007 uted when the bank was founded), the more votes development policies. It is too soon to say exactly for the Most Disadvantaged a member has. By convention, the U.S. and Japan what the role of China as the third major stakeholder Regions Project hold the highest voting percentage, and by conven- - and an active one - will be, but so far we can dis- Upper Secondary and 34,000,000 2006 tion it is always an identical number - somewhere cern a couple of patterns.54 Professional Teacher Development between 10-15%. In recent years, the next highest The voting power is monopolized by the industrial- Upper Secondary and 55,000,000 2004 individual shareholder has been China, followed by Professional Teacher Development ized nations. While non-regional countries own 64.8 India, Australia and Indonesia.53 China and India percent of shares, developing member countries Upper Secondary 55,000,000 2002 have become the new power bases within the ADB Education Development own only 35.2 percent, which already includes China due to their high borrowing power. at 6.5, India at 6.4, and Indonesia at 5.5 percent.55 It Teacher Training 25,000,000 1999 The U.S. and Japan have a long history of being is ridiculous that the ADB governance structure mar- Vocational and Technical 54,000,000 1998 major shareholders in institutions like the ADB and ginalized the countries receiving ADB assistance Education Project therefore their actions can be somewhat predicted: whereas the borrowing countries should have a Lower Secondary 50,000,000 1997 the U.S. has a deeply rooted belief that markets are greater say in the policies applied to their countries. Education Development Source: http://www.adb.org/Projects/approvals.asp?ctry=vie&year=ALL&query=& browse=1&p=ctryvie on April 15, 2009 32 making adb accountable Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 33 Table: ADB voting and shares terms of water resources, it has one of the highest accused of corruption all over the world. At the na- Years of Number Percent Number Voting Power Percent of Reg/ Members Membership of Shares of Total of Votes Percent of Total Non Reg water tariffs in the world. tional level, the project has caused a huge increase in electricity tariffs. The ADB paid more than 5 billion Nepalese rupees Regional Members to the civil works contractor Impregilo without the Afghanistan 1966 1,195 0.034 14,427 0.325 0.5 approval of the Nepal Electricity Authority (NEA) Conditionality, Participation Bangladesh 1973 36,128 1.019 49,360 1.114 1.712 Board of Directors. The amount was nearly 55.55% of the total health sector public spending and nearly and Transparency Cambodia 1966 1,750 0.049 14,982 0.338 0.52 33.33% of the education sector public spending in China 1986 228,000 6.429 241,232 5.442 8.367 The ADB is plagued by its practice of tying ADB the same year. The civil works contractor claimed India 1966 224,010 6.317 237,242 5.352 8.229 loans to privatization of utilities or liberalization of about 1 billion Nepalese rupees and that was to the economic policies. The ADB has always used condi- Indonesia 1966 192,700 5.434 205,932 4.646 7.143 subject of an arbitration process between NEA and tionality as a lever to press specific policy choices on Japan 1966 552,210 15.571 565,442 12.756 19.612 the contractor. At that time the representative of resi- recipient countries. dent mission in Nepal of ADB met the water resource Myanmar 1966 96,350 2.717 109,582 2.472 3.801 minister and the chair of NEA and pressurised the The principles of public participation or public involve- Nepal 1966 5,202 0.147 18,434 0.416 0.639 government to approve the over payment and to in- ment are, at least in theory, acknowledged by the Pakistan 1966 77,080 2.174 90,312 2.037 3.132 augurate the project by the then king of Nepal. How- ADB, but in practice it has been pursuing topdown Sri Lanka 1966 20,520 0.579 33,752 0.761 1.171 ever the minister expressed his inability to do so. and centralized decision making structures. The ADB Thailand 1966 48,174 1.358 61,406 1.385 2.13 The NEA later set up a commission to investigate in many instances have practiced procedures without this matter and the commission has suggested that considering pre-existing social and cultural patterns Vietnam 1966 12,076 0.341 25,308 0.571 0.878 those responsible should be brought to justice. of resource use and decision making, the result has Other countries 752,600 21.390 1,205,720 27.040 42.166 often been the disengagement and marginalization Total Regional 2,247,995 63.390 2,883,131 65.040 100.000 The annual report of NEA (2007/8) claims that the of the local sphere, where, further, rural communities KGA is producing only 759 GWh in the 2007/8 fiscal Non - Regional and villages have most often been the victims. year. However the project completion report of the Members ADB claims that the project is producing an aver- The ADB works in different parts of Asia, with a large Canada 1966 185,086 5.219 198,318 4.474 12.797 age of 842 GWh. Among the three units each of 48 number of stakeholders who display a tremendous France 1970 82,356 2.322 95,588 2.156 6.168 MW power generating turbo; one was not generating diversity of social, economic and cultural back- Germany 1966 153,068 4.316 166,300 3.752 10.731 power at the time the project was handed over to grounds, but it falls short of practicing the principles NEA. The remaining two are operating sub-optimally of diversity and the need of different communities. Italy 1966 63,950 1.803 77,182 1.741 4.98 at a rate of only 37 per cent. The project comple- UK 1966 72,262 2.038 85,494 1.929 5.517 The ADB attaches huge importance to transparency, tion report of ADB claims that there were 132-kilovolt US 1966 552,210 15.571 565,442 12.756 36.487 (kV) transmission lines; one to Pokhara (61.4 km) but it does not live up to its own expectation, particu- Other countries 189,384 5.610 361,400 7.960 23 and the other to Butwal (44.3 km) which were com- larly its dealing with the private sector. Throughout pleted. However the transmission line to Pokhara is the project cycle, the ADB should disclose project Total Non - Regional 1,298,316 36.610 1,549,724 34.960 100.000 only a single circuit. The people of Nepal are suffer- and programme documents and provide regular Grand Total 3,546,3113, 100.000 4,432,855 100.000 ing from acute load shedding of 16 hour daily these updates on project and programme status, includ- Source: http://www.adb.org/About/membership.asp days. But the project completion report claims that ing the information related to its business with the the project is running optimally and in an efficient private sector. manner, fulfilling the electricity demand. Corruption56 The ADB must establish a system of democratic, accountable and fair sovereign lending that sup- construction escalated from US $250 million to US The life of the dam is another key corruption issue. The underground structure of the dam has leaked ports sustainable and equitable development. New Unbudgeted variations in costs in ADB projects $360 million by the time of its completion. The civil since the very beginning of the project. This relates lending rules must take the interests of borrowers is rampant. In the legal limit of the project agree- works construction cost was increased by more than to the quality of the civil work of the Impregilo Com- into account. More generally, democratic principles, ment between government of Nepal and ADB, the 2/3. To meet these increased costs, the ADB placed pany. It is also known that Impregilo has a long track including inclusive participation in decision making, cost variation should not exceed 20%. However additional conditions and increased electricity tar- record of building low quality dams, and has been should be strengthened and respected. in the case of KGA, it exceeded 67%. The cost of iffs. Although Nepal is the second richest country in 34 recommendations Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 35 iv ADB. The review should ensure a human rights and women rights approach to political economy, so as Financial to understand political, social, and institutional struc- and Economic Crisis tures and processes that shape policy decisions and impacts. The results of this review will be the basis for future operations. 1. recommendations Stops displacement: section 2. The ADB must stop displacing people in the name of development, as its projects have brought devas- Reform of the governance structure: tating consequences to the lives and livelihoods of The reform of the ADB’s governance structure, includ- millions due to its infrastructure projects. ing the voting rights and decision making should be completed swiftly. Elections of the leaders of ADB This paper presents the challenges from the three crises and potential policy options to address the chal- should take place under an open democratic process. 2. lenges in Asia. The paper discusses the relations to the policy approach of the ADB. The premonition Additional, permanent and stable sources of of evil is that the three-pronged crises may turn into multiple prongs if the world economic and political 3. condition free funding for developing countries: The creation of a new facility is thus a matter of ur- governance is not transformed to develop alternatives to existing policies and programmes. We strongly Ending policy conditionality: gency. If such a facility could be created in a timely advocate for changes to economic and political governance to protect poor and excluded people from There should be an end to the practice of tying ADB manner, it could be a major vehicle for the disburse- loans to privatization of utilities or liberalization of ment of the requisite additional funding, particularly negative implications of the financial, food, and climate crises. economic policies. Conditionality must be restricted for the least developed countries (LDCs). Developed to what is necessary to ensure that aid is spent on countries must make a renewed effort to meet the its intended beneficiaries, and not used as a lever to commitments made in the Millennium Declaration, press specific policy choices on recipient countries. the Monterrey Consensus, the 2005 Global Summit, The response to the financial crisis must be ground- ed in new models of growth, as opposed to the cur- Reform of the ADB’s and the Doha Declaration by 2015. Governance rent failed model of neo-liberlism. It must stem from national development, the regulation of markets, cor- 4. Ensure transparency: 3. Debt cancellation: 1. porate accountability and the ability of public institu- tions to fulfil their mission to provide public goods. Greater transparency on the part of all parties in re- All debts must be cancelled in order to redirect the Multilateral banks like the ADB should overhaul their A tripartite review of ADB strategy: sponding to the crisis is required. Throughout the fund to much needed government resources to funding facilities to align them with nationally defined The ADB should review its strategy and operations project cycle, the ADB should disclose project and counter the economic crises, for essential social development models. through a tripartite review of its strategies, policies programme documents and provide regular updates services, and immediate measures towards equita- and programmes to explore new policy options, as on project and programme status, including the infor- ble and sustainable development Governments must focus on how to protect the opposed to the current policies and programmes, mation related to its business with the private sector. hundreds of millions of small farmers, millions of based upon the failed model of neo-liberlism. Such retrenched urban workers and the rural poor, par- ticularly women. They must enable farmers to adapt review requires the involvement of civil society or- ganizations, governments and the ADB. This review 5. 4. National stimulus package: All countries should take strong, coordinated, and to suitable approaches such as regenerative agri- should seek to gain from local knowledge in the anal- Needs accountability: effective actions to stimulate their economies. Stim- culture and appropriate technologies in the face of ysis of reform programmes and to make space for, The ADB must establish a system of democratic, ulus should be timely, have large “multipliers,” that climate change. There must be a statutory social se- and institutionalize, grassroots involvement in mac- accountable and fair sovereign lending that sup- help address the strains posed by the economic curity and protection system and a complete trans- roeconomic and sectoral decision-making. It should ports sustainable and equitable development. New downturn on the poor, help address long run prob- formation in asset ownership. Such social security facilitate the full participation of those that have tra- lending rules must take the interests of borrowers lems and prevent instability. and protection should provide sustainable livelihood ditionally been excluded from decision-making in into account. More generally, democratic principles, for the poor and marginalised. the assessment, deliberations, and research of the including inclusive participation in decision making, should be strengthened and respected. 36 recommendations Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change 37 5. Climate Crisis Social security and social protection: er’s dependency on imports and decrease the usage The ADB must support the governments in establish- of synthetic inputs that are harmful to soil and the en- ing and strengthening social security and social pro- vironment. Organic food production, multiple crop- 1. tection, which is long term, developmental and rights ping strategies, livestock production system should Stop financing fossil-fuel extraction: tions and national governments to ensure food se- based solution. This must go beyond cash transfers be strengthened to enhance food sovereignty, soil The ADB and all other IFIs must stop financing fos- curity and sustainable agriculture practices in the to emphasis public actions that address risk, vulner- quality and reduce vulnerability to climate shocks. sil fuel extraction, especially coal and oil activities developing world. ability, discrimination and chronic poverty. Genetic engineering and chemical intensive agri- as these hasten climate change and environmental culture must be rejected as these are mechanisms degradation which particularly affects poor people. that are not only environmentally unsustainable, but Instead, the ADB should promote an urgency to shift 4. 6. also foster the monopolisation of products needed to clean energy and energy efficient solutions—both for preventing climate change and for developing Active participation of women from affected com- Expansion and improvement of delivery of es- for industry-led production. munities and civil society. Many poor communities energy independence and ensuring the security of already have ideas and mechanisms for adaptation sential services delivery: Expansion and improve- developing countries’ energy supply. to environmental changes in their specific contexts. ment of the delivery of essential services and public utilities are required. It is essential that public serv- 3. Their active involvement in developing strategies ices are kept in the public sphere and out of public- Impose restriction on would help the effective disbursement of funds, and private partnerships or private hands. speculation and moratorium on bio-fuel: 2. promote an effective management, monitoring and The reason for rising food prices is vulnerability in Pledge new and additional resources for mitigation evaluation system. Therefore the representation of financial capital markets, and increasing use of ag- and adaptation purposes, accountable to UNFCCC. the marginalised people should be mandatory in ar- riculture land for agri-fuel products. Any irregularity Though specific estimates vary, the cost of mitigating ticulating and implementing national and local adap- Food Crisis in these markets affects cereal availability for con- and adapting to climate change will be enormous. tation policies and programmes. sumption and pushes up their price. Since the ADB Donor countries may dismiss the estimate of $67 bil- is also involved in capital market development in lion per year by 202057 as unrealistic, or point to 1. many countries, it should support governments to the impact of the 2008 global financial crisis on their Increased public investment in Agriculture: restrict speculation and encourage governments to capacity to respond. But the fact remains that they The ADB must lend support to governments that impose moratoriums on bio-fuel production. are bound by the framework convention to respond come up with comprehensive strategies, combin- to the adaptation needs described in this report, and ing interventions in different markets, in favour of they can use a variety of innovative mechanisms to small- farmers. The package should, among others, 4. generate new and additional adaptation funding of at least $86 billion a year by 2015.58 Therefore, instead include increased input subsidies, minimum support Regional corporation prices, food-grain storage facilities, insurance, risk of creating its own adaptation mechanism, the ADB to fight against food crisis: smoothing, guaranteed access of subsidized credit, should pledge its resources to a mechanism which is Countries extensively dependent on imported food employment guarantee schemes, revamped exten- accountable to the UNFCCC. should use strategic reserves to tackle the food cri- sion services, research and development for adap- sis. Countries with abundant rice production would tive technology, and seed protection. need to change their attitude in favour of a more hu- manitarian objective rather than pursuing trade ob- 3. jectives. For example, the East Asia Emergency Rice Agriculture should be recognized as most vulner- 2. Reserve (EAERR) is an emergency rice purchasing able sector to climate change and farmers should Sustainable food production programme rather than a pool or aid programme for be given especial support. and innovative technologies: the region and the mechanism and fundamentals of Agriculture is the most vulnerable sector to the im- The ADB should provide money to governments to this type of reserve has to be changed. The SAARC pacts of climate change especially for developing invest in new technologies and innovative practices Food Bank must start its operation with a food re- countries’ which have a high dependence on agricul- based on local knowledge that would reduce farm- serve of two million tonnes of rice and wheat. tural production. It is therefore important to identify the responsibilities of both international organisa- 38 Common Challenges, Callous Cures - ADB and Crises - Economic, Food and Climate Change End Notes: 1. Toward the Cliff, NGO forum on ADB 32. ADB Master Plan serves the Monopolists not the Powerless, Grainne Ryder, 2. Cambodia Institute of Development Studies, “Impact of Global and Economic Crisis on Cambodia.,” 2009 Watershed Vol 9, No. 2, November 2003-March 2004 33. Behind the ASEAN Power Grid: Analysis of the Asian Development Bank’s Master Acknowledgements Plan for Regional Power Interconnections and Power Trade in the Greater Mekong 3. The cost of mitigation and adaptation is US$182 billion a year by 2020 (US$86 billion Subregion, Gráinne Ryder, Policy Director, Probe International Energy Probe Research a year for adaptation plus US$96 for mitigation): Source: Mitigation figure calculated Foundation, Toronto, Canada, December 2003 This report has benefitted from insights shared in consultative processes by stakeholders, using European Commission figures for Clean Technology (€48 billion), Combating Deforestation (€18 billion) and Agricultural Mitigation (€5 billion): European Commission 34. ADB working paper on Updated energy policy, www.adb.org organized by ActionAid country programmes in different countries. The country case studies staff working document accompanying Communication ‘Towards a comprehensive climate change agreement in Copenhagen’ part 1, ‘costs associated with the 35. HUMAN DEVELOPMENT REPORT 2007/2008, UNDP, www.undp.org are prepared by Tauhid Ibne Farid and S A Hasan Al Farooque for Bangladesh, Sopheareak resulting actions in the energy system and the industrial sectors’, pages 74, 9 and 86 36. Power surge: The Impacts of Rapid Dam Development in Laos, International Rivers, Meas for Cambodia, Bhim Prasad Bhurtel and Navin Subedi for Nepal and Phan Van Ngoc, respectively: http://ec.europa.eu/environment/climat/pdf/future_action/part1.pdf September 2008 4. The UNDP Human Development report figure for adaptation is US$86 billion a year Saroj Dash, Truong Quoc Can, Chu Minh Nguyet, and Le Dong Phuong for Vietnam. 37. Ibid by 2015: Source: UNDP Human Development Report 2007/2008: http://hdr.undp.org/ en/media/HDR_20072008_EN_Complete.pdf (page 194): “In total they amount to new 38. Power Surge, The Impacts of Rapid Dam Development in Laos, International Rivers, additional adaptation finance of around US$86 billion a year by 2015 (table 4.3).” September 2008 The report has benefited from the comments of Anne Jellema, John Samuel, Archie Law, 5. Food Foremost: A Call for Action at the ASEAN Summit’, ActionAid, February 2009 39. Ibid Shahidur Rahman and Tom Sharman. 6. Rising Food Price & Poverty in South Asian Countries: A Call for Action in SAARC 40. Multi-dimensional issues in International Electric Power Grid Interconnections, Summit, prepared for Imagine a New South Asia Social Policy Forum, July 2008, www. Department of Economics and Social affair, United Nations, 2005, http://www. newsouthasia.org terrawatts.com/interconnection_final.pdf The preparation of report was possible due to contribution of Rangsima Deesawade, Iqbal 7. The claim is that the food grain prices have soared because of more demand from 41. Ibid Ahmed, and Tanim Ahmed. China and India as their GDP increases; however, there has been hardly any change in 42. Greater Mekong Environmental Outlook 2007, UNEP the world demand for food in the past three years. 43. Multi-dimensional issues in International Electric Power Grid Interconnections, 8. Economic and Social Survey of Asia and the Pacific 2009, Addressing Triple Threats to Department of Economics and Social affair, United Nations, 2005, http://www. This version of the report is prepared by Rashed Al Mahmud Titumir. Development, UNESCAP terrawatts.com/interconnection_final.pdf 9. Ibid 44. Power Surge, The Impacts of Rapid Dam Development in Laos, International Rivers, 10. There is a growing body of literature. For example see Lohman, 2006 and Richman, September 2008 2003. 45. Ibid 11. The Time is now: Lessons from Farmers Adapting to Climate Change, ActionAid, November 2008 46. FAO and IIASA. Impact of Climate Change, Pests and Diseases on Food Security and Prepared for the ADB Annual Meeting Poverty Reduction, 31st Session of the Committee on World Food Security 23-26 May 12. Ibid 2005, FAO, page 2. May 2009 13. Climate Change 2007: Impacts, Adaptation, and Vulnerabilities, IPCC, Cambridge 47. International Food Policy Research Institute. High Food Prices: the What, Who, and University Press, 2007 How of Proposed Policy Actions. Policy brief: May 2008. 14. ILO, 2009?? 48. Concerns of Climate Change in Vietnam and the role of Asian Development Bank 15. Cambodia Institute of Development Studies, “Impact of Global and Economic Crisis on 49. ADB Country Strategy and Program Update 2007-2010: Viet Nam Cambodia.,” 2009 50. Starting from 1993 ADB is active again in Vietnam (with the exception of minor 16. Food Foremost: A Call for Action at the ASEAN Summit’, ActionAid, February 2009 technical assistance in 1978) 17. Economic and Social Survey of the Asia-Pacific: Addressing Triple Threats to 51. This is the loan for the RMIT Vietnam University establishment in 2001, which was Development, United Nations Publication, 2009 necessary known to all stakeholders of education in Vietnam 18. Institute of Development Studies, UK, Accounts of Crisis: Poor People’s Experiences of 52. Asian Development Primer: With special reference to the water and sanitation sector the Food, Fuel and Financial Crises in Five Countries, Jan- March, 2009 and WaterAid countries in Asia, WaterAid, March 2006 19. Food and Agriculture Organization of the United Nations (2008); The state of food 53. Ibid insecurity in the world: 2006; Rome 54. Ibid 20. Asian Development Bank Annual Report 1998, p. 1 55. http://www.quiendebeaquien.org/spip.php?article760 21. Creating Poverty: ADB in Asia 56. The sources of information related to corruption in Kaligandaki “A” hydroelectric 22. Toward the Cliff, NGO forum on ADB project is well known in Nepal. Nepal Electricity Authority (NEA) commissioned a sub- committee to investigate the financial irregularities during the chairmanship of Ratna 23. Asian CSOs Urge Leaders to Reject ADB’s Strategy 2020 Framework, www.voicebd.org Sansar Shrestha, the then board of director of NEA in 2004. The sub-committee found 24. Trade Liberalization and Poverty in Asia: Issues and Policy Options, Ramkishen S. out that ADB has made over payment of nearly 5 billion Nepalese to the contractor Rajan, Paper prepared for “Assuring Benefits for the Poor in Liberalizing Sectors”, without consent of NEA. Similarly the then minister for water resources, Mr. Deepak Fourth AsiaDevelopment Forum, co-sponsored by the Asian Development Bank, Korea Gyawali’s briefing note to the then Prime Minister, Surya Bahadur Thapa is another Development Institute, Korea Institute for International Economic Policy and the World key evident of corruption in Kali Gandaki “A” project. The reference material is: Action Bank (Seoul: November 3-5, 2002). Aid International Nepal.2007. Kali Gandaki ‘A’ Lagat Bridhi ra karyanwanma Dhilai(Kali Gandaki ‘A’: Cost Increase and Implementation Delayed, text in Nepali), Report 25. Free Trade is not Fair Trade, ActionAid, http://www.actionaid.org.uk/100040/free_trade_ submitted by Environment Study Group, Kathmandu isnt_fair_trade.html 57. The cost of mitigation and adaptation is US$182 billion a year by 2020 (US$86 26. Water Privatisation in Thailand : Situation and Impact , by Montree Chantawong ,Project billion a year for adaptation plus US$96 for mitigation): Source: Mitigation figure for Ecological Recovery, Chiang Mai, Thailand, http://www.terraper.org/event_ubon/ calculated using European Commission figures for Clean Technology (€48 billion), Water%20Privatization_Montree.pdf Combating Deforestation (€18 billion) and Agricultural Mitigation (€5 billion): European Commission staff working document accompanying Communication ‘Towards a 27. http://www.manilastandardtoday.com/?page=politics05_nov14_2005 comprehensive climate change agreement in Copenhagen’ part 1, ‘costs associated 28. http://internationalrivers.org/en/southeast-asia/mekong-regional-initiatives with the resulting actions in the energy system and the industrial sectors’, pages 74, 9 and 86 respectively: http://ec.europa.eu/environment/climat/pdf/future_action/part1.pdf 29. SIZING UP THE GRID: How the Mekong Power Grid Compares Against the Policies of the Asian Development Bank, International Rivers Network, January 2004 58. The UNDP Human Development report figure for adaptation is US$86 billion a year by 2015: Source: UNDP Human Development Report 2007/2008: http://hdr.undp.org/ 30. ADB, January 2000. Country Operational Strategy Study for the Kingdom of Cambodia. en/media/HDR_20072008_EN_Complete.pdf (page 194): “In total they amount to new 31. ADB, March 2000. Aide Memoire Asian Development Bank Loan Fact Finding Mission additional adaptation finance of around US$86 billion a year by 2015 (table 4.3).” for the Stung Chinit Water Resources Development Project.
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