Problems exist deep within foreign aid, as it's a very complex subject politically, socially and economically. A large portion of society are not engaged with the subject or understand it. Through conducting research on the nature of foreign aid I have also been enlightened on different components. Public opinion on aid is very split in most developed countries. A large percentage of society don't believe we are giving enough foreign aid; and the other believe we give too much.
Corruption and foreign aid are two subjects which interplay. Due to this, many counties are hesitant to commit large amounts to countries in need of aid, in fear of misuse. Foreign aid is not a transfer from one country to another, it is from one leader to another. In the form of policy, and primarily flows from democracies to dictatorships, or other non-stable governmental systems. This exchange in policy can include multiple factors.[1] Many believe that foreign aid can prove to be not only be ineffective but counterproductive to the receiving country. [1] Although the following evidence and discussion highlights clear problems within the process and application; aid still postively impacts millions around the world. The following problems identify where fault exists and why there is lack of progress in the system. Additionally, is corruption a major factor to why developing countries aren't becoming self-sufficient? Resulting in the developed countries are becoming 'aid-weary'?
Problems with Aid
Voters
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Democracy
Good Government
A good government with a stable country, has citizens with various professions which all pay tax and contribute to society.
Taxes
For example in 2012 the education of some children in Nigeria was hampered after a former governor stole some $250 million in public funds. [8]
Corrupt governments can provide fees and taxes on incoming donations from donor countries. Corruption issues hamper development greatly, with donors withdrawing aid or completely suspending it. [8] Additionally the normal conditioned money which would have been invested in the economy and the people, is withheld. Foreign aid replaces it, which is where the claims of aid being ineffective arise from. [1] Until a country has a stable economy, and can cope with disasters, disease, hunger and conflict, it will continue to need this foreign aid. Dictators are therefore inclined to not resolve or help their people. [1]
Foreign Aid replaces the normal conditions; with no solid foundations to build upon, this makes it increasingly difficult to progress.
Foreign Aid
Normal Conditions
James B, who was a former governor in Nigeria's Delta State was sentenced to 13 years in prison after being found guilty for embezzling from Nigeria's public funds. The money could have provided education for 400,000 children, or 450,000 hand pumps for households. [8]
Bad Government
Corruption, dysfunction and oppression are the main characteristics of these types of governments.[1] And these bad qualities are reflected in the use and impact of foreign aid. Mistrust and corruption can create tension and exacerbate conflicts. In Afghanistan the people are aware of the corrupt nature of their political leaders, and know that there is a misuse in public spending. Foreign aid indirectly fuels this mistrust and conflict further. [2]
The above image captures the mis use of foreign aid, and a strong message that very little of the actual aid goes to the people which it for. Crime, corruption, dictators all get a larger percentage of the foreign aid. It's these types of images which the develop world see and begin to doubt whether they should be donating. [11]
Natural Disasters
Humanitarian aid takes up a large percentage of the foreign aid budget. The number of natural disasters in the last 30 years have continued to rise. [4] Due to this a lot of humanitarian aid is needed to facilitate populations. With this increase in humanitarian aid there is less investment in economic development and the long-term stability of countries. The very little which the country had in terms of infrastructure, housing, businesses, farming has been destroyed, and it has to begin again. This may be another contributing factor to the growing attitudes from developed countries growing 'aid-weary', with countries going backwards and making no progress.
[4]The above graph shows the dramatic increase in natural disasters in the last 30 years.
War and Conflict
Aid organisations want to reach and help people caught up war zones but this can pose extreme risks. [17] Many aid organisations are focusing humanitarian aid on Syria due to the ongoing civil war. There are urgent appeals for donations from various NGOs. The Syrian civil war is one of the most complex humanitarian crises, and has lasted over 7 years. More than 400,000 syrians have died, and close to 5 million has fled the country. Syrian development has regressed by almost four decades, and four out of five Syrians live in poverty. Since the crisis life expectancy has dropped by 2o years in Syria. School attendance has also dropped by around 50%. [16]
The UK has committed around £2.46 billion since the crisis began in Syria. [17]
Solutions
There is a significant link between foreign aid and democratic transition and consolidation from donor counties to the receiving countries. There are two mechanisms which might influence democracy in the recipient countries. [13] Donor countries may attach conditions to economic aid, in order for leaders to correctly use the aid. Aid may also be directly invested in democratic promotion through strengthening governmental institutions and civil society. With a more transparent government which has a trusting and stable relationship with it's people, developed countries would be more willing to invest. [13]
Conditioned aid is a good solution. Regulating aid to countries in which the governments aren't trusted, means that there will be little room for corruption. Once a government achieves certain percentages and meets particular targets, the aid can be disrupted appropriately. Governments in these countries are made to commit to anti corruption strategies in order to receive aid. [13] For example, European aid to Afghanistan is conditionally to the Afghan government agreeing to admit all refugees deported from Europe. This isn't the most positive condition but is an example of how aid is an exchange of policy and is highly politically motivated.[2]