1 / 28

Rethinking Aid: The Debate on Effectiveness and Dependency

The Aid Debate, held at the AGTI Annual Conference in Galway in October 2011, critically examined the efficacy of international aid after 60 years, revealing alarming statistics, such as nearly one billion people remaining hungry. Experts like Peter Bauer questioned the transfer methods, pointing out the misallocation of resources. Dambisa Moyo's arguments highlighted the issues of dependency, laziness, and corruption in recipient nations, suggesting that market-oriented solutions and accountability could be more effective than traditional aid models.

ayla
Download Presentation

Rethinking Aid: The Debate on Effectiveness and Dependency

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Aid Debate AGTI Annual Conference Galway October 2011

  2. Food for thought... • After 60 years of aid, there are almost one billion people hungry in today’s world…... • "Government-to-government transfers are an excellent method of transferring money from poor people in rich countries to rich people in poor countries." • Peter Bauer - British academic • “It seems as if America needs hungry Africans to eat their surplus.” • Quote by an Ethiopian farmer

  3. Some Statistics • More than $100 billion is transferred to the South every year in official aid and through private charities. • However, remittances account for more than twice as much as all official aid. • Sub-Saharan Africa – the world’s poorest region – receives the largest amount of aid of any region – approx $52 per year per capita. 

  4. Some more statistics ... • Aid to South-East Asia and the Pacific is about $4 per capita per year. • Some African countries are very dependent on aid. For instance, aid to Liberia and Burundi equals about half of their GDP. • After several decades of receiving aid, Africans are poorer than ever!

  5. Aid – Development Assistance • Aid is a partnership between donor countries and recipient countries. • Aid is an industry today. • Aid has been in operation since the middle of the 20th century.

  6. Key Terms - aid • Official aid • Bilateral aid • Multi-lateral aid • Emergency aid • Voluntary aid - NGOs • Short Term vs. Long Term aid

  7. Tied Aid (A) The USA insisted that Africa’s governments purchase anti-AIDS drugs from the USA instead of buying cheaper generic products from South Africa, India or Brazil. (B) In Vietnam, a €2.3 million tied aid package from Italy is funding the building of the water system in an urban setting. An Italian company is setting up the Vietnamese flood monitoring system at a cost of €2.5 million.

  8. The Good Guys • Only six countries – Ireland, Luxembourg, the Netherlands, Sweden Norway and the UK – provide more or less 100% untied aid. • Tied aid was made illegal in the UK with the International Development Act of 2001.

  9. Food Aid by Major Donors 1995-2005

  10. Time 1999: “One of the world’s 100 most influential people”

  11. DambisaMoyo’s Arguments • Aid makes people lazy • It makes recipient governments lazy – they do not pursue tax revenues • Aid fuels corruption • It discourages enterprise

  12. DambisaMoyo’s Arguments • Public services that governments should provide are provided by aid agencies • Aid dependence becomes an addiction • Outsiders call the shots.

  13. DambisaMoyo’s Solutions • Cold turkey • Inward direct investment • A market economy

  14. Aid must be targeted at real needs. • Aid Recipients must be accountable to • donors.

  15. IRELAND’S PARTNER COUNTRIES OTHER PARTNER COUNTRIES: • Vietnam • East Timor OTHER PRIORITY COUNTRIES: Sierra Leone Liberia South Africa Palestine

  16. ODA - %age of GNP

  17. Ireland - ODA in €m

  18. ODA - %age of GNI (2010)

  19. An NGO example

  20. The Trade/Aid Debate • Africa in 1960: A bright future • China in 1960: A basket case • Africa today: A continent in crisis • China today: ……….Double digit growth

  21. Is Trade a better bet for Africa??

  22. LCHL QUESTIONExamine two major issues that arise from the international aid debate. Tied Aid Dependence Food Aid

More Related