The real question about overseas aid

It's not the UK's aid budget that hinders development, it's free-market capitalism.

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

Photo: Getty
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Why a Labour split may be in the interests of both sides

Divorce may be the best option, argues Nick Tyrone. 

Despite everything that is currently happening within the Labour Party - the open infighting amongst party officials, the threat of MPs being deselected, an increasingly bitter leadership contest between two people essentially standing on the same policy platform – the idea of a split is being talked down by everyone involved. The Labour Party will “come together” after the leadership election, somehow. The shared notion is that a split would be bad for everyone other than the Tories.

Allow me to play devil’s advocate. What the Corbynistas want is a Labour Party that is doctrinarily pure. However small that parliamentary party might be for the time being is irrelevant. The basic idea is to build up the membership into a mass movement that will then translate into seats in the House of Commons and eventually, government. You go from 500,000 members to a million, to two million, to five million until you have enough to win a general election.

The majority of the parliamentary Labour party meanwhile believe that properly opposing the Tories in government through conventional means, i.e. actually attacking things the Conservatives put forth in parliament, using mass media to gain public trust and then support, is the way forward. Also, that a revitalisation of social democracy is the ideology to go with as opposed to a nebulous form of socialism.

These two ways of looking at and approaching politics not only do not go together, they are diametric opposites. No wonder the infighting is so vicious; there is no middle way between Corbynism and the bulk of the PLP.

I understand that the Labour MPs do not want to give up on their party, but I don’t see how the membership is shifting in their favour any time soon. Most talk around a split understandably comes back to 1981 and the SDP very quickly yet consider this: the most defections the SDP ever achieved were 28. If there was a split now, it would probably involve the vast majority of the PLP, perhaps even 80 per cent of it – a very, very different proposition. There is also clearly a large number of people out there who want a centre-left, socially democratic, socially liberal party – and polls suggest that for whatever reason the Liberal Democrats cannot capitalise on this gap in the market. Some sort of new centre-left party with 150+ MPs and ex-Labour donors to kick it off just might.

Of course, a split could be a total disaster, at least in the short term, and allow the Tories further general election victories over the next decade. But let’s be honest here – given where we are, isn’t that going to happen anyhow? And if a split simply results in what happened in the 1980s recurring, thus eventually leading to a Labour Party capable of winning a general election again, would members of the PLP currently wondering what to do next not consider it worth it just for that?

Nick Tyrone is Chief Executive of Radix, the think tank for the radical centre.