Friday, August 12, 2005

IMF in action

Excerpt:
In countries such as Niger, Mali and Chad, which hug the southern fringes of the Sahara, there is always a shortfall of food at this time of year, between one harvest and the next. Some children will always die in this lean season. The same used to happen in Britain, in the depths of midwinter; hence the need for a December celebration to lift everyone's spirits. This year, unusually, the shortfall in Niger has been devastating. The reason, analysts say, is not locusts or drought, which only dented last year's harvest by about 11%. According to the Famine Early Warning System Network, a Washington-based group that tracks such crises, a major factor in Niger's shortfall was the export of food to wealthier West African countries, driving prices in the market out of the reach of the poorest.
The Niger government offered food at subsidised prices, below market rates, but even this was too much for the very poor. The medical charity Medecins Sans Frontieres blames Niger's pursuit of free market policies for escalating the crisis. The government refused to distribute free food in the worst-affected regions because they feared it would disrupt the markets, the charity says. The comparison with Mali is instructive. Mali, which neighbours Niger, was also hit by locusts and drought after last year's harvest. But the Mali government instantly handed out around 10,000 tonnes of millet, the staple crop, for free to the hardest hit. It has since organised the free distribution of a further 11,000 tonnes of millet.
Don't blame the locusts -- The Guardian

BA staff strike again

BA's decision to cancel its 500 flights scheduled for today has left at least 70,000 passengers stranded. The stoppage - although not a dispute of the airline's own making - threatens to become another public relations disaster and a costly setback.
"This is the third straight August that BA employees have taken industrial action. This is an annual event for BA."

Striking BA staff told to resume work -- The Guardian

Tuesday, August 09, 2005

Famine in Niger

One of the main results of the attempted use of private enterprise to tackle malnutrition was to push up drastically the price of staple foods. The policies were not President Tandja's own. The International Monetary Fund has pressed for structural changes to the economy, including the introduction of 19 per cent VAT on basic foodstuffs and the scrapping of emergency grain reserves. As a result the price of basic food rose by between 75 and 89 per cent in five years.
President Tandja: 'The people of Niger look well fed, as you can see' -- The Independent