Peoples Forum Against the ADB

PRESS RELEASE: 2 May 2006, Hyderabad

BETTER OFF WITHOUT THE ADB: PEOPLES FORUM

`The ADB is destructive; we are much better off without it'. That is the simple message that civil society groups have for the powerful Asian Development Bank (ADB) on the occasion of its 39th Annual Governors' meeting in Hyderabad. 97 social movements, struggle groups and NGOs from across Asia have come together to form the People's Forum Against ADB (PFAADB), which accuses the ADB of accelerating poverty in the region.

The group issued a strong response to Finance Minister Chidambaram's statement yesterday. Said Souparna Lahiri of the PFAADB, `The Finance Minister's statement that the Government would listen to dissenting views but not change its policies or stop doing business with ADB proves what we have been saying all along. Public consultations are a farce and conducted to appease people. We would like to remind the Minister that in a democracy, public policy must be based on the will of the people. The minority Government that he represents was elected on a platform that rejected neo-liberal economic reforms'.

The ADB's purported raison d'etre is `Fighting poverty in Asia and Pacific'.' Research on ADB projects across Asia show that this is patently untrue. Moreover, it seems unable to learn from its mistakes. For example, in Laos, the ADB supported a project that created subsidies for foreign companies to convert forestland into industrial eucalyptus plantations. It forced farmers off their land and increased poverty and indebtedness. One month after its own internal evaluations reported that the project was a disaster, the ADB sanctioned a longer-term loan for another such project''', highlighted Shalmali Guttal of the policy analysis NGO Focus on the Global South.

`The ADB might not be a familiar name for the people of Andhra Pradesh. But this state was a laboratory of the World Bank and we have experienced the economic policies that the ADB is promoting. The policies failed to deliver for the people and thousands marched against these policies in the streets of this city. Choosing Hyderabad as the site of the ADB's meeting is a threat to all of AP — the people of this state must mobilise to protect their livelihoods and democracy', said Advocate Balagopal of the Human Rights Forum.




The Peoples Forum has given a call for global protests against the ADB on May 5 2006. Thousands are expected to join the 5 May rally from Public Gardens in Nampally.

`Many of ADB's borrowing countries suffer from huge debt burden, but ADB loans simply add to the national debt and come with stringent policy conditionalities. Majority of ADB money goes straight to consultants and multinational corporations, but ordinary citizens are made to bear the costs,' argued Lidy Nacpil from Philippines of the campaign group Asia Pacific Movement on Debt and Development.

Kalia Moldogazieva of Human Development Center Tree of Life in Kyrgyzstan said, `For a small country like Kyrgyzstan, which is undergoing economic transition, the ADB is completely inappropriate. For one thing, ADB projects have resulted in massive corruption. But the ADB itself is completely non-transparent in naming the companies that have embezzled money. The public is being denied the right to know where the money goes'.

The PFAADB is holding a variety of protests, seminars, workshops and public rallies during the four days of the ADB meet. A full schedule and more information on PFAADB is available at www.asianpeoplesforum.net.

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For more information or to arrange an interview with any members of the Peoples Forum against the ADB, please call Benny Kuruvilla (bennyk@focusweb.org) (+91-9820181191) or Ravi Rebbapragada (+91-9848195937)