The real question about overseas aid
It's not the UK's aid budget that hinders development, it's free-market capitalism.
By Deborah Doane Published 25 June 2011 11:37
The Daily Mail continued to push its anti-foreign aid sentiment this week, with its headline on Wednesday: "Billions in overseas aid puts people off giving cash to charity". The paper reports on research published by Politics.com and YouGov@Cambridge which suggests that one in five voters will never donate to an overseas aid charity because they think the money is wasted.
The survey's leading questions point to a foregone conclusion, namely that people don't support the target of giving 0.7% of our GNI (gross national income) to international development. But there's a much-needed debate to be had in what lies beneath public opinion.
Here is the most difficult question in international development circles today: is aid really all its cooked up to be? Raising such a question in political circles draws in sharp breaths from everyone except the Tory hard right. This is the issue, we're told, where we have to support Andrew Mitchell and David Cameron, not undermine them.
For me, the 0.7 per cent aid commitment is a no-brainer. It's a long-standing pledge that goes back over 40 years, having been the very first campaign of the World Development Movement in 1970 (one that we've never quite achieved). It's the least we can offer for all of our years of pillaging resources from the developing world. But it's a distraction from the real business of development.
While many of the sceptics hold an unfounded view that the money all goes to corrupt governments, they may be partially correct in feeling that the money itself has not been used wisely over the years and that funding goes to supporting the business of aid, rather than helping the intended beneficiaries.
Why is it, after 50 or 60 years of "development", that so many people continue to be desperately poor?
The answer is that it's not the money, but rather it's the policies of neoliberal market-based capitalism that have led to years of impoverishment of the developing world. UK development policies have pushed an agenda that has favoured big business over local accountability and local people.
In practice, this means a solution like large scale agriculture for export has displaced local people, taking away their ability to produce their own food; or in the area of health policy, that big pharma solutions (like vaccinations - as per the much-lauded Bill Gates initiative last week) prevail over local public health initiatives. It means that business extracts all of the wealth, and doesn't pay any taxes.
We can vaccinate millions of children. But if those children's families continue to be impoverished because of systemic corporate tax evasion, lack of property rights, and the power of global monopolies, those vaccinations are utterly useless.
This free market dogma also lies behind the cuts agenda in the UK. Having asset-stripped developing countries for years, private solutions, not solid public solutions developed by and for the grassroots, dominate the aid agenda. And this is why people should all be at least a little bit cynical about aid. What we really need are just policies that will enable the developing world to overcome poverty, not be forever at the mercy of a rich world elite who advocate private solutions that will only ever benefit those same rich world elite.
Deborah Doane is Director of the World Development Movement
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18 comments
Luddite - how are 'our' poor and less fortunate suffering because we try to help people who live in extreme poverty which is completely incomparable with any poverty we have here?
If we stopped giving foreign aid and gave it to poor people in this country the right would go nuts.
@those vaccinations are utterly useless.
well why bother then?
Sam we didn't help anyone. Aids become the African poison. It breeds corruption and stifles development. Only the Africans can solve Africa's problems not missed placed European guilt. It's well functioning capitalism Africa needs the most not pity.
Luddite - Of course aid can't replace the development that capitalism brings but it's not compltely useless. Whilst we can't force governments to do the right thing, if we can keep aid out out of the wrong hands then I think it is worth it. If we can help set us schools then if and when there are economic reforms there will hopefully be a section of society that is educated and can attract investment.
Then there are basic things like clean water, stopping disease and things like that which is worth doing merely out of kindness.
Sorry Sam, the word is Aid not Aids but the two go together both are poisonous both plague Africa. Sam it's a great virtue to care for others, but from time to time others must care for themselves. All the charity in the world can't replace that.
I don't think the problems in places like Niger, Central African Republic and the Congo are simply down the inhabitants not caring about themselves.
Fortunately there are quite a few African countries that are progressing well and I think other countries will look to them for inspiration.
Jonathan Glennie points out, “In reality, in many African countries aid has meant more poverty, more hungry people, worse basic services for poor people and damage to already precarious democratic institutions.” (The trouble with aid: why less could mean more for Africa, by Jonathan Glennie, Zed Books, 2008.)
The aid conditions of privatisation and liberalisation have had more impact than aid money. As he observes, “donor conditions have harmed Africa overall.” He notes, “trade liberalisation policies as a whole have cost Africa $272 billion since 1985.” A 2004 report found that “adjustment policies have contributed to the further impoverishment and marginalisation of local populations, while increasing economic inequality.”
Glennie notes, “The European Union is currently using the promise of better trade access through Economic Partnership Agreements (EPAs) to pressurize African governments to adopt policies most do not want to adopt. Just like aid conditionalities, this pressure undermines democratic accountability and the ability of African countries to make decisions in their own interests.”
He notes “the central paradox of aid – that the act of aid giving in itself undermines both state capacity and accountability.”
He sums up, “aid itself has undermined democracy, institutions and the capacity to govern in Africa.”
Glennie observes that aid is good for the donor governments. “There are two main reasons for the donor focus on aid. First, aid is the easiest and least costly way for politicians to be seen to be responding to the continuing and unacceptable poverty that exists in most of the world, particularly in Africa. And second, far from being costly, aid is a cost-efficient way of buying economic advantage and political support.” For example, spending on technical aid, mostly the salaries of foreign advisers shipped in from donor countries, accounts for half of all aid.
He concludes, “Aid increases may harm efforts to reduce poverty and improve governance and sustainable development in most African countries.” Nations need to control capital flows, create and use their own resources, and not rely on foreign aid.
Well of course ALL the money doesn't go to corrupt governments. Quite a lot goes nto the pension plans of charity chaps. But are you asserting, sir, that only a negligible amount is siphoned off? Can you back this up? Or is it just something you SAY to pre-empt debate. Yes, I thought it was.
It is time the media actually explain to the xenophobic public that Cameron and his chums are not in the charity business when they advocate the continuation of Foreign aid.So they can relax, no real aid is reaching the poor of this world.That should cheer them up.
Why oh why a right wing government hell bent of doing the bidding of capitalism, would be so keen in helping poor people around the world??
The answer is very simple.As hinted in this article, simply because it benefits big business.
Every bit of hand out is tied up with commercial contracts and further stripping of that country's resources. Foreign aid is not FREE!
Even apparently charitable projects such as Bill Gates' vaccination plans
have a little stink about them. Who is to supply all these vaccines if not a massive pharmaceutical company?
Very lucrative for them thank you very much.
Yes I am very cynical about the whole thing because I know governments only act in their self interest or more accurately in the interests of big business.
So somebody should explain all that to the morons who read the "Daily Mail" that there is no point getting worked up about this, since as we give them something with one hand we handsomely help ourselves with the other.Meanwhile the poor of the world stay poor, but global business is happy, happy to exploit those countries through their fortunately corrupt governments. This situation feeds on and perpetrates corruption and maintain the Statu quo.
Meanwhile we strangle their economies by demanding the most horrendous interest rates for the loans we forced them to take in the first place.
Then we can blame the poor people of the world for their inability to get out of poverty giving us a good excuse for not giving to overseas charities.
A very depressing sate of affairs.
I'm surprised that a left wing dinosaur like Ms Doane is still running a development charity. That's one charity that won't see a cent from me directly, although I'm sure she gets my tax dollars to waste.
Perhaps she's so busy ranting against free market capitalism that she hasn't found the time to notice that there are numerous success stories in the developing world, and they didn't get there by deciding to solve all their problems with handouts and subsidies.
Does she honestly think small scale agriculture for domestic consumption is the path to prosperity? Laughable. I think governments of any political persuasion in developing countries would be insulted to have western charities giving them such patently absurd advice. And for all her sneering at Gates, do vaccinations make anyone worse off? Quite the opposite, but I suspect she is compelled to take a holier than thou attitude since Gates has committed the unforgivable crime of spending a huge proportion of his vast wealth on development.
Given all her experience in development, has she never noticed that the poorest, least developed countries in the world have the least foreign investment, not the most? If evil foreign corporations stealing everybody's money is the problem, how does that make sense?
None of this editorial makes sense, it is all cliche left wing claptrap backed up by nothing at all.
"Then there are basic things like clean water, stopping disease and things like that which is worth doing merely out of kindness."
Why do we need to help people get clean water in a country with a space programme? It is entirely possible that our aid money just frees up local government spending for other purposes.
It's quite bizarre that she's accusing free-market capitalism of causing poverty in countries where there is no free market and very little capitalism.
I do wonder if dictators, bad governance, corruption and little or no education is a contributing fact as well as the evils of "neoliberalism."
Fact0r***
Poverty remains a global challenge, however, with 1.4 billion people still living on less than $1.47 a day. A lack of clean water, food, housing, health care, education and economic opportunities remain obstacles for large numbers of people in neighbouring countries and in Africa, Latin America and the Caribbean. So we must fight for this poverty and aid those who lives to the poorest.
Are there still ANY left wing person reading on this web site? or has it been taken over by right wing people still enamoured with the capitalist system?
All the lefties have gone to live the utopian dream in the Democratic People's Republic of Korea.
Agree with some of this article, but very worried about the ridiculous statement that without other changes vaccinations are "utterly useless". It's both anti-science and anti-justice. The lack of access of people to life saving vaccinations is linked to the power of multinational pharmaceutical companies, their research budgets and intellectual property rights. Tackling this power, and therefore lack of access to vaccines, should be one of the structural causes of poverty being challenged.
Foreign aid is resented by many, why should our poor old and less fortunate suffer to appease guilt ridden European middle-class whites. So Daniele. It's all the fault of evil multinational companies, the likes of the 'socialist' Robert Mugabe plays no apart? So Bill Gates can give freely 'billions' and in your twisted world still remains condemned. Africa as had over 50 years of Independence from the European, but still remains poor, sitting on mountain of natural wealth. Lets see if the Africans far any better under Chinese rule. By the way, are you the same Daniele that believes all the worlds problems are caused by the Jews!