Wednesday, March 11, 2020

Lothar Maier, March 5, 2020, Raw Materials Supply


Lothar Maier
Raw Materials Supply
German Bundestag, March 5, 2020, Plenarprotokoll 19/149, pp. 18643-18644

[Lothar Maier is an Alternative für Deutschland Bundestag member from the western German state of Baden-Württemberg. He is a retired economics professor. He here presents an AfD motion (Drucksache 19/17525) concerning German raw materials supply.]

Right honorable Herr President. Ladies and gentlemen.

In this debate, we are speaking of German industry’s mid and long term supply of raw materials, and specifically of those which we must import from non-European countries. Raw materials supply generally becoming a greater problem was not foreseen ten years ago. The economy was accustomed to be able to purchase any necessary material in sufficient quantity on the world market. Not even one raw material was actually scarce.

Today we must acknowledge that ever more important raw materials are ever more difficult to procure. Rare earths, diverse metals, minerals, sources of energy and even certain agricultural raw materials. The reason is not the exhaustion of raw material reserves but the centralization of the market. Large consumers, primarily China, but also the USA, France and Great Britain, have secured monopolistic hold on important sources of minerals and determine the price. Worthy colleagues, ja, with raw materials, power politics is being pursued. Who would have thought it?

Late, but not too late, the Bundesverband der Deutschen Industrie has pointed to the threatening dangers in its Berlin raw materials declaration and admonished the Federal government to take resolute action. Sadly, this alarm was unable to waken the Federal government from its deep slumber. There, one appears to continue to believe that the market will regulate all. It does that, but with consequences other than those dreamt of by this government.

There is no coherent German raw materials policy to speak of. China has secured for itself not only raw material reserves in Africa, South America and Asia, in which not only the deposits are brought under control but to which is also delivered the necessary infrastructure like streets, railroads, harbors and airports for complete transportation and processing. German investments in this sector remain at best selective and uncoordinated. They will not be supported diplomatically by the Federal government and adjusted to a development concept for the target country, nor will the possibilities of technical cooperation be employed for supportive measures, primarily in the area of infrastructure but also for the training requirements for qualified skilled labor. TZ [Technical Cooperation] and private investments run along unrelated to one another and often the TZ pursues goals which seem to originate from another world.   

The Development Ministry’s budget of 10 billion euros allows it to finance the infrastructure and training projects of many significant private investments in the target countries which could economically advance those countries. Instead, a large portion of the TZ budget for small and micro projects is squandered by a highly dubious setting of goals, meaningless for development policy. As an example, I name here 170,000 euros for gender-sensitive, male employment in Nicaragua, 67,000 euros for the improvement of the sexual and reproductive health of youth in Bolivia’s District 8 –

            Uwe Kekeritz (Greens): Describe the case for once! What is the background?

– 234,000 euros for the integral and gender-based promotion of organized, small farm families in Uganda, etc., etc. If such projects help anyone at all, it is the employees of these German NGOs who implement them.       

What needs doing in foreign economic and development policy are the three measures we are presenting which correspond equally to German interests as well as to those of the target countries.

First: The coordination of German raw materials and development policy by the creation of an office of Federal commissioner for raw materials policy, its duties consisting of the bundling and linking of national initiatives for the securing of raw materials supply.

Second: The founding of a German raw materials company from an association of private firms which organizes the production and stock-piling of strategically important raw materials and which guides its work. There must be no, or only a very limited, public financial participation.

And third: A new orientation of the Technical Cooperation to the writing not of donated investments which fail as soon as the foreign sponsor has stopped financing the goal, but investments in mutual interests with a long term perspective. The goal of such a cooperation cannot alone consist only of the production and export of simple raw materials, but should also include the organized guidance of the initial processing stages in the target land and supportive measures for the German economy’s substantial investment in the partner countries.

Let’s do something unusual! Let’s do something useful for all!

Thank you.


[Translated by Todd Martin]