maandag 17 december 2012

How Effective Is Overseas Aid?

Some quotes from a very interesting discussion in the Guardian last Saturday between Clare Short (former Development secretary UK) and Ha-Joon Chang ( economist, born in South Korea) :

CS: "The UK spends about ₤8bn on aid, we spend more than ₤40bn on defence and ₤600bn on public expenditure so ₤8bn is a tiny part....Funding that helps countries speed up their development is just about decency, and also about the world being safer and more secure in the future."

HC: "In all the recent debates on aid, there is an implicit assumption that aid more or less doesn't work. However, there are many examples of aid working. My own native country, South Korea, is a great example. In the 1960s, it was one of the poorest countries in the world; now it's a donor. In certain periods, foreign aid played a critical role in allowing us to build infrastructure, resolve housing crises, build particular  fertiliser factories and so on- if you use it well, aid can be a very good thing. So let's talk about how to make it better rather than talking about getting rid of it."

CS: "42% of children in India are stunted. That means 42% of little brains and bodies are not getting enough nutrition and clean water to grow. So you can't say: Oh, India's rich now- and walk away."

HC: "Well, you need to do so many things to pull some countries out of their poverty, so giving individuals a goat is a good thing. But it's not enough, so I don't want that kind of private aid to be considered a replacement for building infrastructure, installing sanitation systems and so on."

CS: "I don't think food banks are the answer to to poverty in Britain, but in the mean time it's good that people (and companies-RvdK) are giving aid."

HC: "Unfortunately, with the austerity drive, Britain is becoming a bit of a Scrooge. This country used to be very decent, and now it's becoming narrow-minded and stingy."

Let's hope Scrooge (in this case most rich countries) will see the right ghost and direct its mind to world development. Improve rather than get rid of aid, Chang couldn't have said it better.




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