http://timesofindia.indiatimes.com/articleshow/1113107.cms


Blair blamed for Indian farmers' deaths

   IANS[ TUESDAY, MAY 17, 2005 04:11:59 PM ]

LONDON: The British government had its back to the wall over its
development policies on Tuesday after claims that it paid a think
tank to enforce needless privatisation of state units in India's
Andhra Pradesh - a move that contributed to thousands of farmer
suicides.

  Christian Aid, the international non-governmental organisation, said
in a devastating report published on Monday that in India, unfettered
liberalisation policies backed by the British government had led to a
crisis in agriculture, spiralling rural debt and an epidemic of
suicide among poor farmers.

  The group says that more than 4,000 farmers have committed suicide
in the southern Indian state since the so-called 'reforms' initiated
by ousted Chief Minister Chandra Babu Naidu's "hard-line liberalising
regime", in part bankrolled by the British government.

  Astonishingly, the report, titled 'The Damage Done: Aid, Death and
Dogma,' revealed that the privatisation was implemented not by
Britain's Department for International Development (DfID), but by the
Adam Smith Institute, a right-wing think tank.

  While DfID, created by the centre-left Labour government under Prime
Minister Tony Blair, has won praise for its development policies, the
Adam Smith Institute is well-known for its close ideological
proximity to the opposition Conservative Party.

  In a statement, DfID's deputy head in India Howard Taylor also said
the department does not support unfettered free trade or forced
liberalisation and that "it is for the state or national governments
with which DfID works to determine what economic reforms they
undertake".

  "This is not just bizarre - in fact, many people in Britain have
been extremely worried that millions of pounds of taxpayers' money is
being used to bankroll the Adam Smith Institute by this government,"
John McGhie, campaigns and investigations director at Christian Aid
said.

  McGhie also strongly rebutted DfID's claim, made Monday night, that
its support for economic reforms in Andhra Pradesh, including the
privatisation of state-owned enterprises, has helped safeguard the
livelihoods of "around two million people" in the state.

  McGhie acknowledged that the Labour government's broad policy thrust
was not to support unfettered liberalisation and privatisation, but
added that this "180 degree U-turn was very recent - after years of
supporting liberalisation."

  One stark example of how unfettered privatisation went wrong, said
McGhie, was the fate of the Andhra Pradesh State Seed Development
Corporation (APSSDC), which was allowed to languish to make way for
private operators to move in. The result was sub-standard seeds,
higher prices, low productivity and farm debts.

  "I don't know where DfID gets its figures from, but the very fact
that the new Andhra government has revived the APSSDC shows that its
privatisation was damaging to farmers."

  Mincing no words, the Christian Aid report draws a strong link
between the privatisation of 42 state units in Andhra Pradesh and the
farm suicides.

  "The immediate cause of these deaths is debt. This debt was brought
on by a number of factors, all of which, except for the weather, can
be ascribed to liberalisation," it says.

  "These liberalising factors at both national and state level were
the results of policies made by India's central government, the
Andhra Pradesh government of Chandrababu Naidu, the IMF, the World
Bank and DFID.

  Christian Aid is now campaigning for the British government to bring
in legislation to make it illegal for any government to tie
development aid to enforced liberalisation and privatisation.

  McGhie said the DfID's outsourcing arrangement with the Adam Smith
Institute too is coming to an end, adding: "It takes a long time to
turn around a tanker."





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