There is a ton of foreign aid which is supposedly going to feed the poor people. But most aid does not make it to the poor people; it is frittered away on administrative costs. Only 1/3 of the aid actually makes it to the people it is intended to help.
This money is sent to foreign countries with no adequate verification as to how it is being spent after it gets there. Therefore, it lines the pockets of the rich, while taking away from the poor, similar to Robin Hood in reverse. This is a massive waste of taxpayer money, courtesy of the GOP Congress. No wonder you can’t trust Republicans with your money.
In addition, burdensome restrictions by donor countries hamper recipients’ abilities to use it for their needs. Some of the restrictions are listed below.
Here are some examples of how the money is being wasted:
Not targeted for poverty reduction, estimated to be worth US$4.9 billion
Double counted as debt relief, totaling US$9.4 billion
Overpriced and ineffective- Technical Assistance, estimated at US$13.8 billion
Tied to goods and services from the donor country, estimated at US$2.7 billion
Poorly coordinated and with high transaction costs, estimated at US$9 billion
Too unpredictable to be useful to the recipient – lack of data prevents an estimate
Spent on immigration-related costs in the donor country; totaling US$1.5 billion
Spent on excess administration costs; totaling US$0.4 billion.
According to the report, the US Phantom Aid rate is around 90%.
Here is Action Aid’s take:
Here are their recommendations:
In addition, the report calls for a new International Aid Agreement that will hold donor countries accountable. This agreement should include clear policies from developing countries on the criteria for accepting aid; mutual commitments from donor and recipient countries; national and international review forums; and new mechanisms for increasing the amount and predictability of aid to the world’s poorest countries.
Real aid consists of only 0.07% of G7 countries’ incomes; the report recommends an increase to 0.7%.
Statistics which should give one pause; from the report:
–100 million children have no access to primary education.
–800 million people go to bed hungry at night.
There have been many reports about Americans being less than generous. On page 5, Norwegian aid money is almost 40 times as likely to be real aid as American aid.
Much of the aid that donor countries send is tied up in burdensome regulations which smacks of the old colonialist mentality in display both during the 19th century and during the Iraq War. Faiza, an Iraqi, writes:
And they sent the sun for Iraq after their great war, bringing light and knowledge for poor Iraqis..
These kind of people, will be defeated one day..
Sooner on later, they will go out of existence
And there will be peace and freedom for all nations from these sick minded bugs!
Some of the regulations include massive rules and regulations which hamper a country from meeting its own needs. Another example involves donor countries requiring host countries to buy their country’s products (Read: Halliburton?). To give a local example, ask any local school official what he or she thinks of the feds or the state dictating to them how aid should be spent. The same goes for foreign aid.
In addition, there is the possibility that the Wolfowitz-led World Bank might sweeten their aid offers in return for host countries supplying troops to Iraq or wherever Bush wants them to go (Iran?).
Making countries supply, say, 1,000 soldiers as a prerequisite for foreign aid will only bring more hardships to these countries. As anybody who has an immediate family member in the military will tell you, life can be hard. They will say that they worry all the time any time the phone rings. How much more burdensome will it be for these families if you add the factors of starvation, lack of a good education, and disease ready to strike at any moment?
This demonstrates a clear contrast between liberal thinking and conservative thinking. Liberal thinking emphasizes the mutual interests of the donor and the recipient. The conservative model involves the same old failed colonialist policies of the past, where the “enlightened” masters think they know better than the savages down below them. The possibility of John Bolton and Paul Wolfowitz taking this kind of thinking to a 21st-century level must be called for what it is: A reactionary solution which will only trigger more starvation and distress.
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The Netherlands past administrations from left to right have always agreed in one single issue: meet the UN proposed number of 0.7% GDP budget for Development Aid. The programs have changed throughout the years, and are closely scrutinized and reported to Dutch parliament. Sometimes, a cabinet member is appointed, usually it’s an assistant to the FM, an undersecretary of state, as in the present case with FM Bot and Mrs. van Ardenne as special delegate for Aid to Third World countries.
Mrs van Ardenne and UN delegate Jan Pronk on Darfur
In recent years, the funds are more often used in support of local NGO’s and established programs, not to the government itself. Development Aid is also used in programs set up locally by Dutch corporations, involved in development aid in designated countries, selected as the poorest of them all. With former colony of Indonesia, there has always been a special relationship with the Dutch, though sometimes a difficult one.
The former leftist Dutch government ‘Purple Coalition’ with PM Wim Kok and Development Aid minister Jan Pronk (Present Special UN Delegate on Sudan), were very critical of Indonesia on abuse of Human Rights, especially in East Timor and the Moluccas. Due to criticism, Indonesia stopped all programs financed by the Dutch government. Under the new leadership of President OBY, the relationship has been normalized and Development Aid programs have been launched in harmony with the Indonesian administration.
Due to a stalled economy in Europe, and a budget deficit as a result, some activities performed by the Armed Forces in Iraq and Afghanistan has been listed as Development Aid and financed by the budget of the FM.
Oui – Liberté – Egalité – Fraternité
That’s really good. If the Netherlands can agree in a bipartisan manner on sending 0.7% GDP of aid to worthwhile projects, why can’t we do that? Oh wait: Bush is too busy pandering to the Black Helicopter crowd.
I work in international development, and I get pretty crazy about the proprietary rules.
An example. I once had to fly from DC to Almaty, Kazakhstan. As it was an AID project, I was required to fly on an American carrier. Admirable goal – support American businesses with US tax dollars. Problem: no American carriers fly to Almaty. Solution: buy a United “code-share” ticket and fly on Lufthansa through Frankfurt. Cost: $5100. AID happy.
My partner, whose ticket we paid privately, sat right next to me all the way. Her ticket? $1700.
Dozens more examples like that exist, and I get pretty crazy having to deal with it all the time.
So much of the money earmarked as foreign aid actually goes as under-the-table payments to businesses. Just one more form of corporate welfare. No wonder you can’t trust Republicans with your money.