So having discussed a brief history of international Aid and ‘Debt relief’ I will now show you what happens.
I am sure by the end of it, your views will change dramatically. You will be shocked and I don’t blame you.
Charles lwanga is director for Africa for development initiatives, an NGO focusing on information relating to ending poverty by 2035.
He has undergone a vigorous task of shifting through piles of information relating to the foriegn aid provided by wealthy countries to those most in need.
His findings are shocking !!!!!
In 2011 the total number of aid provided from rich countries to poor ones stood at $150 billion, however only $59 billion of this was actually given in cash, mainly to the governments and NGO’s.
However the question is, firstly why was not all the money given ( you will find out shorty) and giving money to governments poses many questions.
For example how will the money that has been given to the recipient government be regulated to check it is actually being used for the purposes it claimed money for in the first place. Who’s to say it wont be going in the pocket of the ministers or corrupt leaders.
This requires some form of governance and checks and balances.
So I can hear you all eagerly asking the crucial question, International Aid, Where does it really go?????
Well, wait for it……………………………………………………………………………..
It doesn’t go anywhere it remains in the donor country!!!!!!
I bet you are so shocked right now. Approximately 20% of bilateral aid remains in donor sending countries.
How is it used in donor countries?
According to the finding by Charles Iwanga, In 2011, $4.5 billion was spent on refugee costs $3.5 billion on university costs and $7.5 billion on debt relief.
These donor countries argue that they use the money to spend on refugees that come over, for example in terms of housing, food, clothing ect. Then the other amount is used to pay for the school fees of these refugees ect. Lastly the remaining amount is used to pay of the debt the recipient country owes the Donor country.
What an Oxymoron!!!
These wealthy countries champion the idea of free education for all yet they are keeping money to pay for the school fees for refugees. It doesn’t make sense.
Besides these donor countries generally have high GDP’s, do they really need to be keeping all that money. It is needed much more in poor countries.
Take a look at these figures from a new report- Investments to end poverty, which is a review of foreign Aid from OECD Donors.
It found that Italy gave $2 billion in 2011 in bilateral Aid.
However 70% of that remained within Italy as refugee costs and debt relief.
In Congo it was advertised that $7.5 billion was given in foreign aid
however the report found that more than $5 billion was not given but instead used as debt relief.
If all of this is going on, how on earth do we expect to reach the goal to end global Poverty. As I explained before, there is no such aim, it is just rhetoric to make people think and see things in a certain way, and this will control the people from asking the crucial questions.
The winners are of course the Donor countries, the world bank, IMF and the losers are the poor countries.