Aid critics
Critics of aid from within donor countries argue that aid breeds a dependency culture, which stunts economic growth. They also claim that corrupt recipient governments divert aid on to arms spending.
However, economic growth takes place when people are productively engaged in income-generating activities. Growth is strengthened when they can compete in international trade on a level playing field.
Poor healthcare, limited education budgets and the lack of clean water are factors that prevent many people in poorer countries from contributing to growth. All of these could be addressed by high-quality development aid meeting people's real needs.
Some countries receiving aid certainly have high armaments spending. India spends 15% of its central government expenditure on defence, and Sri Lanka 18%. Armaments suppliers are generally based in richer countries, and donor governments have steadfastly resisted demands to curb their armaments industries. These industries continue to thrive on sales to poorer nations.
Some observers believe that poorer nations spending more on defence seem to attract greater levels of aid. This suggests that aid may not be just directed towards eradicating poverty. It might also be meeting the donors' strategic military objectives.
Successful aid requires a reliable and transparent relationship between the donor and recipient. Despite international agreements by donor countries to provide aid levels of 0.7% GNI, actual aid regularly falls far short of this.
Effective aid requires obligations of the donor as well as the recipients. Instead, a one-way, unequal power relationship prevails at present. Meaningful aid will target the world's poor and improve democratic processes at all levels. It will help to mobilise the poor to fight the causes of their poverty.
However, economic growth takes place when people are productively engaged in income-generating activities. Growth is strengthened when they can compete in international trade on a level playing field.
Poor healthcare, limited education budgets and the lack of clean water are factors that prevent many people in poorer countries from contributing to growth. All of these could be addressed by high-quality development aid meeting people's real needs.
Some countries receiving aid certainly have high armaments spending. India spends 15% of its central government expenditure on defence, and Sri Lanka 18%. Armaments suppliers are generally based in richer countries, and donor governments have steadfastly resisted demands to curb their armaments industries. These industries continue to thrive on sales to poorer nations.
Some observers believe that poorer nations spending more on defence seem to attract greater levels of aid. This suggests that aid may not be just directed towards eradicating poverty. It might also be meeting the donors' strategic military objectives.
Successful aid requires a reliable and transparent relationship between the donor and recipient. Despite international agreements by donor countries to provide aid levels of 0.7% GNI, actual aid regularly falls far short of this.
Effective aid requires obligations of the donor as well as the recipients. Instead, a one-way, unequal power relationship prevails at present. Meaningful aid will target the world's poor and improve democratic processes at all levels. It will help to mobilise the poor to fight the causes of their poverty.