Niebel′s business approach to aid splits opinion | German election 2017 - All the news, data and facts you need | DW | 09.09.2013
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German election

Niebel's business approach to aid splits opinion

German Development Minister Dirk Niebel has worked with industry in ways that the opposition would never consider. He likes to be controversial, but he has also been praised for his last four years in office.

Entwicklungs projekte aus Deutschland Baustelle projekt zugeliefert von: Deutsche Botshaft in Pristina copyright: Deutsche Botshaft in Pristina

Entwicklungsprojekte aus Deutschland

Dirk Niebel has not reinvented the wheel of German development policy, but he has certainly brought about more change than his predecessors in the last 20 years.

ARCHIV: Entwicklungshilfeminister Dirk Niebel (FDP) posiert in Faisabad in Afghanistan mit seiner Gebirgsjaegermuetze aus seiner Zeit bei der Bundeswehr (Foto vom 30.03.11). Die Bundeskanzlerin geht davon aus, dass Entwicklungsminister Dirk Niebel seine Versaeumnisse in der Teppich-Affaere rasch bereinigt. Merkel sei sicher, dass die Verzollung des privat erworbenen Souvenirs aus Afghanistan so schnell und so vollstaendig wie moeglich nachgeholt wird, sagte ein Regierungssprecher am Freitag (08.06.12) in Berlin. Der FDP-Politiker hatte das Souvenir im Mai im Dienstjet des BND-Chefs von Kabul aus nach Deutschland mitnehmen lassen, da er mit einer Linienmaschine angereist war und den sperrigen Teppich nicht mitnehmen konnte. Fuer den Transport zahlte der Minister keine Gebuehren. Auch wurde dem deutschen Zoll die Ware nicht vorgelegt. (zu dapd-Text) Foto: Sascha Schuermann/dapd

Niebel belongs to the business-friendly Free Democratic Party

German businesses have benefited most from these changes, while they are thorns in the sides of non-governmental organizations (NGOs) and the opposition parties. Niebel's motto as a business-friendly Free Democrat is that supporting developing countries should not just be about spending money, it should also be about making money.

According to his reasoning, the state still plays a major role by providing most of the funding, but private investors are welcome and encouraged to contribute.

Niebel thinks that small and medium-sized companies in particular can benefit from combining charity and business, for example, by getting involved in infrastructure projects that can help local people and also generate money. He likes to refer to it as a win-win situation.

Business friendly

Niebel is very outspoken about his projects and views, and he is not afraid of criticism. When rebuked for the turnaround in German development policy, he countered that he is "minister for economic cooperation and development - in that order."

The German government, he stated, "is convinced that services like general infrastructure, health care and education can only be financed and maintained by stimulating economic growth, which will result in higher tax revenues."

Niebel also stressed that the best way to fight poverty is to help create jobs so people have the means to support themselves.

Das Wasserwerk wurde mit deutsche Entwicklungshilfe finanziert. Es wird privatwirtschaftliche betriebe und gilt als Vorzeigebeispiel für gelungene Entwicklungszusammenarbeit. Das Wasserwerk wirft Gewinne ab, die Kommune kann den Kredit des BMZ zurückzahlen, die Wasserversorgung in der Region hat sich verbessert. Foto: DW/Stefan Ehlert, 1. Quartal 2012

This water facility in Kenya is an example of Niebel's 'profitable' aid approach

Praise from World Bank

World Bank President Jim Yong Kim, who is from the US, supports Niebel's stance. "If you're ambitious, it's all about maximizing the effect of every single dollar of development aid," Kim says.

The financial situation in the Ministry for Economic Cooperation and Development (BMZ) has certainly improved substantially under Niebel. When he took over there in 2009, the budget was 5.1 billion euros, now it's 6.4 billion euros.

As Europe's biggest economy, Germany currently sets aside just 0.38 percent of gross domestic product (GDP) for development aid - far less than the 0.7 percent the major industrialized nations have committed themselves to under the Official Development Assistance (ODA) quotas.

Given that budget cuts are on the cards, it's highly unlikely that Germany will make that quota in the next few years.

Unwanted poultry for Africa

Niebel's fiercest critics are in Germany's Left party. Heike Hänsel, spokeswoman for development issues, berates the government for following a purely neoliberal course with regards to developing countries.

She points to the "exploitation of natural resources," exacerbated by the EU's agricultural subsidies, which destroy local markets, according to the Left party. Niebel does not disagree, he has also called for an end to the EU subsidies. But nothing has been done so far.

The German Protestant charity "Brot für die Welt" ("bread for the world") keeps reminding politics of the chasm between promising change and acting on those promises.

Last year, for example, German exports of chicken to Africa increased 120 percent to 42 million kilos, compared with the previous year. Extremely low prices squeeze local producers, many of which are women, out of the market.

Hühnerhändler verkauft seine Ware auch unterwegs zum Markt Wer hat das Bild gemacht?: Ado Hazzad (DW Korrespondent) Wann wurde das Bild gemacht?: 30.07.2013 Wo wurde das Bild aufgenommen?: Bauchi / Nigeria

German chicken exports to Africa squeeze locals out of the market

Working with the military

The former chairwoman of the Association of Development NGOs (Venro), Claudia Warning, points out another controversial policy: Chancellor Angela Merkel has praised Niebel for his policy of coordinating development issues in conflict regions very closely with the armed forces, as is common practice for German efforts in Afghanistan. Merkel calls it one of Niebel's "greatest achievements."

But Warning calls for an end to this practice, as it runs the very substantial risk of development efforts being perceived as part of the military. Conflict prevention is a lot more successful on a civilian basis, she says.

She is also in favor of a more comprehensive approach in development aid, to "always consider the needs of the poor" when it comes to agriculture, security, fishing and foreign policy.

Majority in favor of more aid

Development issues are unlikely to sway voters in the general election on September 22, but people are concerned about aid.

According to the polling institute Emnid, around 80 percent of those polled were in favor of much higher spending on humanitarian and development aid.

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