Emergency Relief

To Aid or Trade?

Pakistan, known for its textiles, would like the freedom to sell these wares in foreign countries, not just in local shops. Photo: <a href="http://www.flickr.com/photos/benny_lin/4564466986/in/photostream/">Benny Lin (flickr)</a>
Pakistan, known for its textiles, would like the freedom to sell these wares in foreign countries, not just in local shops. Photo: Benny Lin (flickr)

After environmental disasters, nations often rush to pledge relief aid. But how well-meaning are these donations? If countries were truly acting altruistically, they might also consider amending their trade policies, as Pakistani textile manufacturers argue in the Wall Street Journal.

In Pakistan, textiles are a major part of the economy. “The country's textile sector directly employs 3.5 million people, accounting for 40 percent of urban factory jobs,” writes the Journal. Overall, textile-product exports account for over half of Pakistan's total exports, so any restrictions placed on the sector have a significant impact on the entire economy.

As a result, the cost to Pakistani textile producers from U.S. barriers to trade is considerable, reports the Journal.

Abolishing American tariffs, which currently stand at an average 17 percent on cotton pants and shirts from Pakistan, would boost the nation's textile exports by $5 billion annually, government officials and factory owners estimate.

This sizable loss in income and the effect it has on the economy is integral to reforming Pakistan's economy. Neither the aid that Pakistan receives, in general, nor pledged aid in response to recent flooding, will be enough to lift Pakistan out of poverty, advocates say.

The recent flooding has profoundly impacted Pakistan and made this an opportune time to highlight grievances over the use of aid versus trade. Advocates for lowering trade tariffs are using the inflows of aid and heightened focus on rebuilding Pakistan’s soggy economy to show that most countries’ donations are inadequate.

The crux of their complaints is that the U.S and other donor nations could do far more to help countries such as Pakistan recover if they would stop restricting trade, allowing manufacturers and merchants to prosper and help the economy recover.

When put into perspective, using aid donations to signal support for development does ring a bit hollow, as these numbers cited by Global Issues demonstrate.

The total cost to developing countries of restrictions on textile imports into the developed world has been estimated to be some $50 billion a year. This is more or less equivalent to the total amount of annual development assistance provided by Northern governments to the Third World.

So, as the article continues on to say, “we take back with our left hand every cent we give with our right," a practice that has been understandably met with criticism in the developing world.

Surely the aid given to help ensure there is adequate food, water, and sanitation for flood victims doesn't go unappreciated. However, looking to the future — a necessary response to any disaster — some Pakistanis are calling on donor countries to reevaluate policy, not just pull out their pocketbooks.

Mercy Corps Responds to Devastating Earthquake in Haiti

View of impromptu tent city in the middle of Haiti's capital. Photo: <a href="http://www.flickr.com/photos/37913760@N03/4274634444/">United Nations Development Programme (flickr)</a>
View of impromptu tent city in the middle of Haiti's capital. Photo: United Nations Development Programme (flickr)

Haiti has just received another powerful blow. A powerful 7.0-magnitude earthquake rocked Haiti's capital on Tuesday, devastating a country that has seen more than its share of disasters both man-made and natural over the last few years. The news reports trickling in paint a bleak picture of almost unimaginable ruin.

I was privileged to witness some amazing progress in this tiny country that has long carried the dubious distinction of being the poorest nation in the western hemisphere during my annual and semi-annual trips to the island nation since the election of a new president in 2006. Paved roads and bridges had begun to appear across raging rivers that kept villages isolated. In the small community of 40,000 where most of my work took me, Engineers Without Borders drilled and installed seven clean water wells that dramatically lowered the infant mortality death rate. In a community that had once had just one Cuban-trained health worker who functioned without medicine or equipment, a small staff of doctors and nurses began to provide health care. A fragile sliver of hope had begun to take root.

This earthquake has devastated a country that does not have the resources to recover on its own. Mercy Corps’s has dispatched a response team to rush critical supplies and other urgent assistance to survivors. More staffers will arrive in the coming days.

As more aid workers arrive, they will face huge challenges. Haiti's international airport has just one runway and no taxiways, so airplanes that land there have to do a U-turn at the end of the runway and taxi back to a parking space. I can imagine that right now, that one runway and the airspace around Port au Prince is busier than a Los Angeles freeway. On the ground, the Mercy Corps team may find that accommodations are sparse or non-existent. Reports indicate that even major buildings in the capital city have been heavily damaged or destroyed. Security will also be an issue. The United Nations peacekeeping forces have provided the most reliable security in the country, but they themselves have been devastated by the death and injury of key personnel. Food and safe drinking water were never abundant, but now they will be even scarcer. Over the coming weeks and months Haitians will face tremendous obstacles to recovery.

Thankfully, the professionals at Mercy Corps have seen all of this before. They have a long history of helping earthquake survivors in other countries: Peru, China, Pakistan, and Indonesia. I have no doubts about their capacity to provide the best possible support in this situation. Several people have asked how they could best help with Mercy Corps’s effort. Really, the best way anyone could help is to make a cash donation to the Mercy Corps Haiti Earthquake Fund. As a matter of policy Mercy Corps does not use volunteers or donated materials like clothing from the general public in their relief efforts.

With a combination of generous donations and Mercy Corps' tremendous professional resources we can help Haiti survive this devastating body blow and replant the small seeds of hope that I saw grow there over the past few years.


Stories We're Watching

As Growth Slows, India Awakens to Need for Foreign Investment

International Herald Tribune - Wed, 02/08/2012 - 08:26
India’s central bank and economic analysts predict that growth will fall sharply to 7 percent this fiscal year and remain sluggish.

Social responsibility and a new world order

Washington Post - Innovations - Tue, 02/07/2012 - 07:56
Just before the New Year, the London-based Center for Economics and Business Research announced that Brazil had overtaken the United Kingdom as the world’s sixth largest economy. Furthermore, it predicted that by 2020, India and Russia will also have overtaken all the European economic powers.

Aid for trade policy rears its ugly head

The Guardian's Poverty Matters - Mon, 02/06/2012 - 01:41
The UK government's dismay at not being granted the contract for Typhoon fighter jets in India is an indication that its controversial aid for trade policy is still very much alive.

Liberia's battle to put the lights back on

The Guardian's Poverty Matters - Sun, 02/05/2012 - 23:00
Ellen Johnson Sirleaf has set ambitious targets to restore the country's electricity supply. But will it meet them by 2015?

As Africa's consumers rise, so does inequality

Yale Global Online - Fri, 02/03/2012 - 10:17
Kenya struggles to spread the wealth from rapid growth.

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