NEWS: 90% Aid From Spain To SE Asia Are Credits To Buy products From Spain.

Officially, while the government of Spain claims that they are sending 53 million Euros to those countries which were hit in SE Asia by the tsunami, the truth is that only 5%, or 5 million euros, is the real amount of money they will be sending, and 90%, or 48 million euros, will be sent in the form of credits, or development aid funds. This means that those 48 million euros are only a loan, with interest, which can only be used for the purchase of products from Spain. "El Ministerio de Industria y Comercio" (Ministry of Industry and Commerce) from Spain is the one giving these credits, which is proof that the terrible disaster these countries have gone through, is being used as a "tool for commerce" by officials from Spain. According to the Director of Intermon Oxfam Investigations, Jose Maria Vera, "Meanwhile most other countries are giving donations, and also a debt moratorium to the affected countries, our own government is offering credits (a loan), which will generate more external debts."


(This news is not being reported in any English newspapers, it comes directly from an online newspaper from Spain, in Spanish.)


As we can see from the above, the government of Spain is using this disaster as a tool so that Spain can put those countries hit by the tsunami under more external debt, and they are making sure that the debt is owed to Spain only.

The article continues saying that this same tactic had been used by Spain when Etiop�a, Uganda y Camer�n had an starvation crisis. The article states that these countries had to pay spain 6 times the amount they were credited, or 23 million euros, from the development aid funds.

This economic tactic has been used by spain, and their banks, for a long time, even when "El partido popular" was in power, only 15% of the money was really "humanitarian," the rest was just a loan, or credit, with interest.


Related Links

Spanish Development Policy - Overview

Spain - Donor Profile

International Cooperation For Development.


[edit on 1-7-2005 by Zion Mainframe]

You know, I do not have ahuge issue with this. No doubt that Spain produces materials needed for the rebuilding effort, and while they are giving taxpayer money they are also allowing it to benifit the both the Asian countries and the people of Spain, whos products will be purchased. Nothing like a little pump priming to help out.

However, those of you who vilified the U.S. (to be fair, anything the U.S. does seems to get this treatment) what is your take on this? Where are the cries of foul and the like? How would you react if this was the U.S. policy? Ah I love the smell of a double standard in the morning.

FredT, the problem is that countries should be donating instead of trying to make a profit from such disasters as Spain is doing. I do find it strange that no news media from the US has picked up on this.

Originally posted by Muaddib
I do find it strange that no news media from the US has picked up on this.

I heard within days of the Tsuami that the majority of the aid Spain was giving was actually loans, which is why Spain's contributions weren't focused on as much as others.

I think about half of the money Australia is giving is also credit.

I'm sure other nations are doing the same.

When it was announced the US was upping aid from $15 mil to $35 mil, they said the extra $20 mil would be a 'line of credit'.
I'm not sure how much of the hundreds of millions extra the US announced will be given as cash or debt relief or credits.

I found some interesting articles, in english, about Spain's development aid funds which Spain became a member of the OECD Development Assistance Committee (DAC), recently. This is a membership of the worldbank.... i will add those links above.

Of interest is the following excerpt, which is how Spain is sending their "aid" to these countries.

There are four major components in Spain�s (ODA):


A soft loan scheme, the Development Aid Fund (FAD), which is located in the Ministry of Economy and Finance, and managed by the State Secretariat for Trade, Tourism, and Small and Medium Enterprises (SSTT).

Excerpted from.
www.gm-unccd.org...

What to me all this means is that this group, which spain is a part of, are using disasters to make a profit.

Ace, can you please provide links? I would like to see some information on this.

[edit on 7-1-2005 by Muaddib]

The US does give more money outside of this group for aid due to disasters etc. Could the reason why we don't give so much money through this group, be that we are one of the few countries that do not want to make profit from disasters and this is why we rank as one of the lowest giving "aid money for profit" through this group?...


Here is an excerpt of the money pledge and the amount committed by the US.

Total USG Humanitarian and Recovery Assistance Pledged: $350,000,000
Total USAID/OFDA Humanitarian Assistance Committed: $36,670,489
Total USG Humanitarian Assistance Committed: $50,822,395

Excerpted from.
www.usaid.gov...

--edited to add comment---

[edit on 7-1-2005 by Muaddib]

Originally posted by Muaddib
The US does give more money outside of this group for aid due to disasters etc. Could the reason why we don't give so much money through this group, be that we are one of the few countries that do not want to make profit from disasters and this is why we rank as one of the lowest giving "aid money for profit" through this group?...

OK, off the bat, I do not want to get into a huge arguement with you over this.

Just hear me out....

I think the big reason other countries flew off the handle at the 'Original' money that the US had said would be contributed because the US is spending Billions to blow up another country, yet will only give about $35 million to disaster relief. Now this is not My opinion of this, just the way I see others seeing it. The US is destroying Iraq in the hopes of rebuilding it to a democracy. US companies are making profits off this. Colin Powell has said that hopefully this would better the image of the US. In one way or another they are profiting, or hoping to, off this. Which I think is just disgusting. I am sure I can think of hundreds of ways the US could better their image without using a natural disaster to do so.

As far as this situation goes, I tend to agree with what FredT said. If they are able to kill two birds with one stone, everyone makes out. If the people effected by this have to suffer because of it, I do not find that right. I have not seen anything as of yet that would suggest that.

Originally posted by Muaddib
Ace, can you please provide links? I would like to see some information on this.

The Australian donation looks like half is free and does not have to ever be paid back and the other half is interest free loans: (which is still generous)

theage.com.au
The $500 million in grants will be directed towards areas of high priority in Indonesia and used mainly on small-scale reconstruction, while the concessional finance - interest free loans for up to 40 years - will go towards the reconstruction and rehabilitation of major infrastructure.

I'm not sure how to interpret the 'line of credit' remark here:

www.state.gov December 28, 2004
QUESTION: Adam, can you just -- the $20 million, exactly what is the status of that? Is that to be disbursed fairly soon or is it just --

MR. ERELI: Like the $11 million, it will be -- the 11 million additional, it will be disbursed to our missions and to local NGOs and other organizations as the need arises. The way to think of it is as a line of credit, frankly, that here is money available to be drawn upon to get equipment, to develop capacity, to provide supplies and relief to the people in need, as those needs are identified and as the institutions are identified that are capable of making use of the money. So think of it as a line of credit to be drawn down upon, as opposed to just a pot of money to be thrown out there.

QUESTION: Is it cash, credits and goods, or all three, or what?

MR. ERELI: I believe it's credit. It's basically money available to pay bills

I'm not sure how to interpret Powell's comments either:

abc.net.au
Mr Powell says the United States is standing ready to provide further relief aid in addition to the $US350 million it has already committed to the affected countries.

"There is quite a line of credit out that's still out there for us to use," Mr Powell said.

Originally posted by Muaddib
FredT, the problem is that countries should be donating instead of trying to make a profit from such disasters as Spain is doing.

Maudib - nothing is free. Disaster relief always comes with strings as far as I know. We usually don't learn what the conditions are, but people today are becoming more savvy and calling foul more often - plus the political games don't quit either.

....I think this is the start of a great research project. Like, how does our world really work? ...and who calls the shots?


.

That's fine. It helps, and by the way, I have recently learned that there is a vast difference between charity and altruism.

Governments are indebted to the welfare of their citizens...period. So, any gift is sufficient. Those given by the individuals for the sake of love to another human being are what count.

I beat the crap out of France in the first days of this for this very thing...that was wrong. Governments are not bound by obligation or shame to do more than they feel is right by their citizens.

It's really up to us as fellow human beings to take care of each other.

The Australian Govt have pledged 1 Billion, 1/2 of which is an interest free loan that is to be paid back over a 40 year period, the rest is total aid. That 1 billion plus the 100 million or so raised by the public & given to the charities which are on the ground helping is a pretty damn good effort in my books. The Spanish need to get their heads out of their &rses & give these poor people a break, I'd like to see them giving 50% as a tax free loan........if they can stand not to profit from someone elses mysery.