Common Challenges_ Callous Cures by gegeshandong

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									                                                                                                                    Common
                                                                                                                    Challenges,
                                                                                                                    Callous Cures
                                                                                                                    ADB and Crises -
                                                                                                                    Economic, Food
                                                                                                                    and Climate Change




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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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