5.8.15
GRAIN — Agro-colonialism in the Congo: European and US development finance bankrolls a new round of agro-colonialism in the DRC: Development finance institutions (DFIs) were created by northern governments to provide financing for high risk projects in so-called developing countries. Their role is to provide public money for private ventures that would otherwise struggle to raise capital for projects where the anticipated returns in terms of poverty alleviation are high.
Today these government-controlled institutions provide upwards of $100 billion to private companies operating in developing countries, which is equivalent to almost two thirds of official development assistance.1 A growing share of these funds are targeted at companies operating in the food and agriculture sector.2
Northern governments equipped their DFIs with codes and standards to guard against corruption and human rights violations in countries where they operate. These policies are meant to prevent DFIs from investing in companies that grab land, violate labour rights or engage in corrupt practices.
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