‘How to tackle poverty in the Third World’

A speech to the Conference on poverty and immigration, by NWASDG, 23 June 2007.

The North West Asylum Seekers Defence Group (NWASDG) would like to thank TARA and Jules, for inviting us here to speak today. NWASDG was set up in May 2006 by some anti-deportation campaigns and Manchester Fight Racism! Fight Imperialism! (FRFI).

The world we live in today is dominated by the economic system called capitalism, which has developed into imperialism. Imperialism has divided the world into two types of countries – oppressed and oppressor countries – a handful of countries such as the US, Britain, France, Germany, Japan, etc., dominate, exploit and impoverish numerous underdeveloped countries, creating a system of global oppression and financial strangulation of the majority of the population of the world. It is this system of oppression – imperialism, that is the cause of poverty and mass migration that we see in the world today. The billions of migrants and refugees are trying to escape this system of exploitation and poverty.

 
 
Before outlining how to tackle poverty, it is worth describing exactly what is meant by poverty. There are various degrees of poverty, which exists in every country of the world including the rich industrialized countries.
 
However in what is called the third world, the degree of poverty is truly obscene: The underdeveloped countries with some 80% of the world’s population have less than 20% of the world’s wealth. More than a quarter of the 4.5bn people living in underdeveloped countries do not have some of life’s most basic needs.
 
  • 1.3bn people live on incomes of less than $1 a day, almost 3bn on less than $2 a day.
  • 1.3bn people do not have access to clean water.
  • 2.5bn people lack basic sanitation.
  • 2bn people lack access to electricity.
  • More than 850m people are illiterate.
 
About 46m people in the world were living with HIV/AIDS at the end of 2005, most of them living in the third world. AIDS caused over 3.3m deaths and 15 million orphans in 2005. At least 27 million people in Africa face starvation due to food shortages. About half of African children, 43 million, are out of school. 300 million sub-Saharan Africans live on less than about 50p a day. In Latin America, the picture is similar, with at least 30% of the population live in poverty. Poverty among indigenous people in reaches 96% in the rural areas, showing the racist nature of Latin American ‘democracies’.
 
Unsurprisingly, as a result, 11 million people die each year, 30,000 a day, due to hunger, preventable diseases and extreme poverty, including 4.8 million children under five.
 
The rich countries of the world have been trying to tackle poverty in Africa and latin America for the last 50 years, with no success. Poverty continues to rise. People in Africa are poorer now than they were 50 years ago. Every year the rich countries called the G7 or G8 have a conference on poverty, scratching their heads as to how to tackle poverty. In reality they are not interested in tackling poverty, but they are the very cause of poverty in the first place.
 
After African people struggled to free themselves from colonial rule, the colonialists put in place measures to achieve colonialism while preaching ‘independence’.
 
The first method is their control of the economies of these countries, their exports and the world market, as well as of the prices of commodities bought and sold there.
 
Another technique of neo-colonialism or imperialism is the use of high interest rates from their loans and ‘aid’. According to the World Bank, which is controlled by the rich countries, in 1962 71 Asian, African and Latin American countries owed foreign debts of some $27bn.  $6 billion was given in economic aid between 1960 and 1962. But in a sample year, 1961, the average sums taken out by such donors, was $5bn in profits, $1bn in interest, and $5,8bn from non-equivalent exchange, or a total of $11.8bn extracted against $6bn put in. Thus, ‘aid’ is another means of exploitation, under a more cosmetic name. This aid is usually given directly, called bilateral aid, but sometimes it is given through international financial institutions like the world Bank or the IMF. All these institutions have, significant, U.S. and British capital as their major stock holders. These agencies forcing would-be borrowers to submit to various offensive conditions, such as supplying information about their economies, submitting their policy and plans to review by the World Bank and accepting supervision of their use of loans, and paying interest on any loans not used. As for the so-called development, promised only a small amount is actually received.
 
 
The whole story of ‘aid’ is not only contained in figures, for there are conditions which hedge it around:
  • signing of commerce and navigation treaties;
  • agreements for economic co-operation;
  • the right to meddle in internal affairs, to lower trade barriers in favour of the rich donor country’s goods and capital;
  • forcing them to end subsidies in fuel, health and education, to privatise state assets, which affect poor people the most;
  • forcing them to protect the interests of private investments of donor corporations;
  • determination of how the funds are to be used;
  • forcing the recipient to supply raw materials like oil, to the donor;
  • and use of such funds a majority of it, in fact to buy goods, mainly arms, from the donor nation. These conditions apply to all aspects of industry, political and military.
 
These measures were put in place by persuasion of African ruling elites and if they refused by force. For example, in 1961 in what is now the Democratic Republic of Congo (then Zaire), leaders like Patrice Lumumba were assassinated by the US, Britain and Belgium, because he wanted to kick out private corporations of the imperialists, and give the land to the people. The British government of the time, colluded in this murder. To keep this system going, civil wars and coup d’etats have been fomented throughout Africa. African and Latin American leaders who were independent of mind or anti-imperialist have been stigmatised, assassinated.
 
This exploitation and control continues till today: in 1998, the poor countries owed about $2.4 trillion and in 2005, they owed $3 trillion. So every year they pay more and more in debt repayments while owing more and more, even more than they originally borrowed. These debts will never be paid and these countries will remain hooked in debt and poverty until this system of exploitation is ended. It is the imperialist system that is responsible for third world poverty and only the end of imperialism can save the 11,000 children who die every day from poverty.
 
Let us not forget that this poverty is the main cause of migration from the poor countries to the rich countries, as people seek to escape hunger, disease, starvation, civil wars and deaths. And when they get here the racist British Labour government locks them up in prisons they call ‘detention centres’, calls them liars and scroungers and deports them back to face rape, torture and death, which their own system of exploitation has caused in the first place!
 

The example of Cuba

The system is not impossible to remove, look at the tiny Caribbean island of Cuba, which is a poor country, yet everybody in Cuba enjoys free education up to University level; every one has access to free health care regardless of whether you are black or white, from a rich family or from a poor family. As a result, infant mortality is better in Cuba at 5.3, than in Manchester, Bradford, Birmingham or Glasgow where it is about 12 per thousand live births. While life expectancy in parts of Africa is as low as 33 years, or 48 years in Afghanistan, it is 75 in Cuba. There are no malnourished children or street children in Cuba, and yet Cuba doesn’t have the wealth of Congo or Iraq or Nigeria. It has instead a different system not based on imperialism and capitalist exploitation. In 1959, they kicked out the imperialists and their local sponsors and have been building a different society ever since, a socialist society.
 
Now Venezuela in Latin America, is following their example. This year Venezuela kicked out the IMF, last year the World Bank. They have taken more control of their own oil companies and forced the multinationals like BP to pay tax! Since 1998 seven new universities have opened, 50 new high schools, tens of thousands of new college places. Last year they eradicated illiteracy. Cuba eradicated illiteracy in 1961. 30,000 Cuban doctors and nurses provide free health care to 17 million Venezuelans in impoverished areas. Around 100,000 Venezuelans received free eye surgery from Cuba in 2005 alone. Cubans doctors, mostly women have been providing free health care in areas where a doctor had previously never been seen such as in Pakistan in 2005. Cuba and Venezuela have turned their backs on imperialism and capitalism and their people are staring to see the results. In 2002, the US tried to orchestrate another coup in Venezuela just like they have been doing in the third world for decades, to remove democratic leaders who lead in the interests of the poor, and not in the interests of the rich and powerful.
 
In Venezuela, poverty has dropped from 25% in 2003 to 9.1% in 2006 – in just three years, and yet in Britain the Labour government continue to look for ways to tackle poverty and since they came to power in 1997, 100,000 more children have fallen into poverty. Even those they claim they have raised from poverty have been raised from just below the poverty line to just above it – any little shock, like losing their jobs and they will be back in poverty. The British Labour government and the G8 represent the rich and powerful – the banks, multinational corporations, millionaires, the middle classes - that is why they don’t know how to tackle poverty, and will never tackle poverty, because its not in their interests. It will be like killing the goose that lays the golden egg. While Cuba exports doctors, nurses and teachers, Britain and the US export bombs, missiles and helicopter gunships, under the cover of ‘peace keeping’ and ‘humanitarian aid’ – that is why when NGOs and aid agencies call for ‘more and better aid’ to quote them, are actually calling for more imperialism, more exploitation and more death, because they are unable or unwilling to understand the real nature and purpose of that so-called ‘aid’. These aid agencies also benefit indirectly from the aid, as they are the ones who will administer the aid and it pays their wages.
 

Poverty in Britain

Inequality is growing also within the rich countries themselves. By 2005, 27% of children in Britain, lived in poverty while in 1979 it was 14%. Today, some 3.4 million children remain in poverty, despite living in the fifth richest country in the world. The top 1% of the population owned 23% of all wealth in 2002, which had risen from 17% in 1989, whilst the bottom 50% of the population own only 6% of the national wealth.
 
Poverty in a relatively rich country like Britain is deeply debilitating and socially isolating.
 
  • 9.5m people cannot afford to keep their homes adequately heated, damp free and in a decent state of decoration.
  • 7.5m are too poor to engage in social activities such as visiting friends or attending weddings and funerals.
  • 6.5m adults go without essential clothing such as a warm waterproof coat.
  • 10.5m suffer financial insecurity, cannot save or insure their house contents and spend small amounts of money on themselves.
  • 4m people do not have enough money for fresh fruit and vegetables or two meals a day.
  • 8m cannot afford items such as a fridge, telephone or carpets.
 
The only way to truly tackle poverty is to eradicate imperialism and capitalism and build socialism like Cuba and Venezuela are doing. In Britain, we have to organise and protest against the racist attacks being directed by the state against refugees and asylum seekers. We have to educate ourselves on what really going on and who our enemies are, i.e the racist Labour government.
 
 
 
Thank you.