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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Will the House of Lords block Brexit?

Process, and a desire to say "I told you so" will be the real battle lines. 

It’s the people versus the peers, at least as far as some overly-excited Brexiteers are concerned. The bill to trigger Article 50 starts its passage through the House of Lords today, and with it, a row about the unelected chamber and how it ought to behave as far as Brexit is concerned.

This week will, largely, be sound and fury. More peers have signed up to speak than since Tony Blair got rid of the bulk of hereditary peers, triggering a 200-peer long queue of parliamentarians there to rage against the dying of the light, before, inevitably, the Commons prevailed over the Lords.

And to be frank, the same is ultimately going to happen with Article 50. From former SDPers, now either Labour peers or Liberal Democrat peers, who risked their careers over Europe, to the last of the impeccably pro-European Conservatives, to committed Labour and Liberal politicians, there are a number of pro-Europeans who will want to make their voices heard before bowing to the inevitable. Others, too, will want to have their “I told you so” on record should it all go belly-up.

The real battle starts next week, when the bill enters committee stage, and it is then that peers will hope to extract concessions from the government, either through defeat in the Lords or the threat of defeat in the Lords. Opposition peers will aim to secure concessions on the process of the talks, rather than to frustrate the exit.

But there are some areas where the government may be forced to give way. The Lords will seek to codify the government’s promise of a vote on the deal and to enshrine greater parliamentary scrutiny of the process, which is hard to argue against, and the government may concede that quarterly statements to the House on the process of Brexit are a price worth paying, and will, in any case, be a concession they end up making further down the line anyway.

But the big prize is the rights of EU citizens already resident here.  The Lords has the advantage of having the overwhelming majority of the public – and the promises of every senior Leaver during the referendum campaign – behind them on that issue. When the unelected chamber faces down the elected, they like to have the weight of public opinion behind them so this is a well-chosen battleground.

But as Alex Barker explains in today’s FT, the rights of citizens aren’t as easy to guarantee as they look. Do pensions count? What about the children of EU citizens? What about access to social security and health? Rights that are easy to protect in the UK are more fraught in Spain, for instance. What about a British expat, working in, say, Italy, married to an Italian, who divorces, but wishes to remain in Italy afterwards? There is general agreement on all sides that the rights of Brits living in the rest of the EU and citizens of the EU27 living here need to be respected and guaranteed. But that even areas of broad agreement are the subject of fraught negotiation shows why those “I told you sos”  may come in handy sooner than we think.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.