Archived press release

Speakers in London to Call for End to Abuse of UK Development Aid

16 May 2005

Campaigners from Ghana, Nigeria, Georgia and Guatemala arrive in London this week to call on the UK Government to stop funding oil, gas and mining projects through development aid. The visit comes ahead of the crucial G8 meeting in July, when leaders will discuss issues of poverty and climate change.

The campaigners [1], who are visiting Europe as part of a tour organised by Friends of the Earth International, will meet with UK MPs at 1 Parliament Street, London, on Wednesday 18^th May to explain how government aid for fossil fuel and mining projects is exacerbating poverty and fuelling climate change [2]. They will also speak at a public meeting at the London School of Economics on Thursday 19^th May [3].

Friends of the Earth is calling on the UK Government to end public investment in oil, mining and gas projects, which, the environmental campaign group argues, do not meet the aims of development aid but subsidise the profits of multinational oil and mining companies.

In Guatemala, for example, development aid money is being used to finance a gold mine development, operated by the Canadian company Glamis. The mine has led to protests from the local Mayan people who will be displaced from their lands, and have made allegations of human rights abuses by the government who are supporting the development of the mine [4].

In West Africa, the World Bank is providing a loan of $75 million of aid money to support the West African Gas Pipeline, carrying gas from Nigeria to Ghana. Campaigners have voiced concerns that an energy resource is being taken away from communities which do not even have electricity. They also claim the pipeline is likely to benefit the private sector at the expense of communities [5].

Friends of the Earth's International Financial Institutions Campaigner Hannah Ellis said:

"Tax payers money is being grossly misused to exacerbate poverty and damage the environment in the name of so-called development aid. These people have firsthand experience of the damage being done, and they are here in London to demand a rethink on how the British Government spends its money. We need better and smarter use of development aid."

International Financial Institutions, such as the World Bank, support these sectors by providing loans, equity and political guarantees for large transnational corporations under the objective of poverty alleviation. But Friends of the Earth argues that evidence shows that pipelines and gold mines have generally worsened the situation for the poor [6]. They have lead to human rights abuse, environmental degradation, loss of livelihoods, an increase in HIV/AIDS and gender inequality.

On a global level, these projects contribute to dangerous climate change. In addition, mounting evidence as well as the Bank's own research has shown that these projects have done little to promote growth in poor countries, but rather increase corruption and conflict. Jobs in these capital-intensive industries generally go to foreigners, or are only given with short term or no contracts.

Notes

[1] The Speakers are:

Mario Godinez, Director of Friends of the Earth Guatemala
Theo Anderson, Director of Friends of the Earth Ghana
Isaac Osuoka, Coordinator of the Oilwatch Africa Network
Kety Gujaraidze, Grassroots Activist for Green Alternative, Georgia
More details on the Speakers and their expertise is available from our media briefings:

www.foe.co.uk/resource/media_briefing/development_aid_and_the_we.pdf (PDF)

www.foe.co.uk/resource/media_briefing/goldmininginguatemala.pdf (PDF)

www.foe.co.uk/resource/media_briefing/aidingthebakupipeline.pdf (PDF)

[2] Parliamentary Meeting:

International Financial Institutions & Extractive Industries: Time for a Phase Out?, Hosted By Michael Meacher, Wednesday 18^th May, 15:00-17:00, Room A, 1 Parliament Street, London.

[3] Public Meeting: International Financial Institutions & Extractive Industries: Time for a Phase Out?, London School of Economics, New Theatre, LSE, Houghton Street, London WC2A 2AE, Thursday 19th May 2005 18:30 - 20:30.

[4] A media briefing on the Glamis Mining Project in Guatemala is available - see www.foe.co.uk/resource/media_briefing/goldmininginguatemala.pdf (PDF)

[5] A media briefing on the West African Gas Pipeline is available - see
www.foe.co.uk:880/resource/media_briefing/development_aid_and_the_we.pdf (PDF)

[6] See Friends of the Earth International: Hands Off! Why International Financial Institutions Must Stop Drilling, Piping and Mining www.foei.org/publications/pdfs/handsoff.pdf (PDF)

Aiding the Baku Pipeline (PDF)

Development Aid and the Guatemala Gold Mine (PDF)

Development Aid and the West African Gas Pipeline (PDF)

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Published by Friends of the Earth Trust