Free trade is killing us softly: an interview with Francis Ng'ambi

April 2, 2007

Malawian economist Francis Ng'ambi spoke about debt and trade at Ecumenical Advocacy Days earlier this month. He was among several partners that Church World Service brought to speak at the Washington conference. Ng'ambi, a project officer of the Economic Justice Network of the Fellowship of Christian Councils in Southern Africa, also spoke at a Congressional briefing on rethinking US trade policy. The briefing was coordinated by the Interfaith Working Group on Trade and Investment, in which CWS takes part. After those events Ng'ambi visited New York, where he spoke to Church World Service. Eradicating hunger and poverty worldwide is the mission of CWS. Alongside ongoing partnerships that promote food security around the world, the organization advocates economic justice for all. It campaigns against free trade agreements that undermine people's health and livelihoods and their access to food, water, health and education.

Church World Service: What were the highlights of your visit to the US?
Ng'ambi: My visit was educational and informative. The climax was meeting with Representatives Marcy Kaptur (D-OH) and Walter Jones (R-NC). It gave me new ideas for influencing policy makers. It was great to see Democrats and Republicans talking about their own feelings about free trade agreements based on NAFTA and CAFTA.

The other highlight was my interaction with churches. I learned that people in the U.S. are concerned about how their government is conducting itself in trade issues. I was so touched to hear that even here people are affected by trade agreements that their government is coming up with. They've been told: if you don't have expertise, outsource; to reduce inefficiency, privatize. People are saying no to the government's approach to balancing the trade deficit. And churches here say they've seen the U.S. the International Monetary Fund (IMF) and World Bank shifting its course. During the 1999 Jubilee Campaign, people said you can't cancel debt completely. But we saw the IMF and World Bank shift. So there's precedence.

CWS: What are your concerns about free trade?
Ng'ambi: We want fair trade. Free trade isn't free. Multinational corporations (MNC) want a highway to do trade without any hindrance, without any tariffs. They want to do their business, make money, and transfer cash to banks in the U.S. and U.K. They are looking for 100 percent market access in Third World countries. They say we can also have 100 percent access to U.S. and U.K. markets. This is a fallacy because we are on a different level of development than them. Our capacity is so different that we can't compete on an equal footing. So these companies are going through their governments to advance their interests. The idea is to break the protection of markets in south and east Africa. They want complete free market system in our countries.

Free trade agreements are not transparent. For the trade agreement between the U.S. and the South African Customs Union, each government had to sign an oath not to show others the agreement it had signed. IMF and World Bank Letters of Intent are not available for people in our countries to see till people in Europe fight for it. When I went to London, I saw the Letter of Intent signed with Malawi. I got into trouble bringing it back to our country.

When these FTAs are discussed there is no people's participation. It's between the U.S. trade group and the government of the country. There's a lot of arm-twisting. They say if you want us to help you with aid then make sure you sign this agreement. Even our parliaments don't know what our executives have signed. Most African countries have an IMF official in the Ministry of Finance.

In the free trade process, trade is taken as an end. Most of our countries look at trade as a source of revenue. The US gets only two percent of its revenues from tariffs, whereas SACU countries get 50 percent of their revenue comes from trade, and it's injected into health and education. With free trade agreements most countries in Southern Africa will lose their revenue base. Swaziland will lose 53 percent. Trade must be a means to getting money for development. Trade and development must be linked. The U.S. wants a
One Size Fits All policy. But what is possible in Latin America is not possible in Southern Africa. Bush is facing demonstrations in Mexico. His policies are killing us softly. We're asking you to stop his fast track authority. Help us.

CWS: How do free trade policies affect agriculture in Southern Africa?
Ng'ambi: Farmers in the US are supported by the government, even for not growing crops. But our governments are not allowed to support their farmers because of IMF and World Bank policies. Fifteen years under IMF and World Bank conditions have liberalized our economies, removed subsidies. Now there's no market for farm inputs. We used to have price controls. Our farmers always knew that if they grew corn or cotton the government would buy it and they would have money. Since the 1980's the grain control boards have gone. The IMF forced them to be sold to MNCs. When there's hunger in our countries, the Food and Agriculture Organization will approach the U.S. The U.S. will loan money to Malawi but on condition that food is bought from the U.S. The loan creates a market for U.S. farmers in Malawi. Malawi's farmers can't compete with U.S. farmers and have to sell at prices lower than the cost of inputs and labor. Support by the U.S. government to farmers distorts the global market.

We also know that genetically modified (GM) corn is mixed with regular corn dumped here from the U.S. Some people think there's nothing wrong in giving GM food aid. They say after all these people are hungry. It's either eat or die. Genetically modified food is not the answer to food security; it's just making money for agribusinesses. Food security comes from having access, through the means to produce or buy, having food available at any time, having a choice over what you eat, having a safety net during food shortage. There are also environmental issues involved in dumping GM food products.

CWS: What is the Ecumenical Justice Network doing to press for fair trade?
Ng'ambi: In South Africa we are raising awareness, approaching policy makers, requiring parliaments to go back to the Constitution to revisit the powers of the Minister of Finance. Some of them can come to the US and sign contract without representing their people. Before they make a deal they must consult civil society and churches. Whenever the US and EU come they only meet and negotiate with the executive. They say “we deal with elected governments, people you have put into power, not with people. But we tell them, we put them in power in trust to work for us. You must be inclusive. We're monitoring loans. We're campaigning around the U.S.-South African Customs Union agreement. We're happy to hear that it's impacting farmers here also, that it's not benefiting anybody.

CWS: What campaigns or events is the EJN planning?
Ng'ambi: This is a big year for us. From April 19 to 23, we're targeting the Economic Partnership Agreements that the European Union is imposing on us. We'll have a one-day awareness program to interact with councils of churches, faith-based organizations and NGOs on the impact of EPAs on our countries. Since Germany is the next president of the E.U., we'll march to German embassies in Tanzania, Malawi, S. Africa, Namibia, Mozambique and Botswana. Churches and partners will present petitions to the ambassadors, to revise the terms of the EPAs.

In May we will be training more than 40 people from all the councils on how the IMF-WB policies operate, how they increase poverty and cut livelihoods.

In October, when the world observes Food Day and the International Day for the Eradication of Poverty, we will help link churches and faith-based grassroots groups to the World Council of Churches' campaign with the Ecumenical Advocacy Alliance. Action Aid International is joining in on the right of sovereign countries to produce food and promote food security. It's enshrined in the Constitutions of many countries that they will ensure people's rights to food, shelter and water. We are asking governments to look into that, and ask multi-national corporations to stop eroding people's right to food. We're also debating how churches can promote food security, not just relief.