For AID used as an abbreviation, see
AID.
For the homonym "aide", see
Aide.
For the disease, see
AIDS.
Aid (or "international aid", "overseas aid", or "foreign aid", especially in the United States) is the help, mostly economic, which may be
provided to communities or countries in the event of a humanitarian crisis or to
achieve a socioeconomic objective. Humanitarian
aid is therefore primarily used for emergency relief, while development aid aims to create long-term sustainable economic
growth. Wealthier countries typically provide aid to economically developing
countries.
Sources and distribution
Bilateral Aid is given by the government of one country directly to another. Many dedicated governmental
aid agencies dispense bilateral aid, for example USAID, and DFID.
Multilateral aid is given from the government of a country to an international agency, such as the World Bank, the International Monetary Fund, or the
European Development Fund. These organizations are usually governed by the
contributing countries.
Donations from private individuals and for-profit companies are another significant type of aid. The practice of giving such
donations, especially on the part of wealthy individuals, is known as philanthropy. Many
immigrants move to areas of increased economic opportunity, and send money to friends and family members who still live in the
countries they left. These payments are known as remittances (rather than philanthropy) and constitute a significant
portion of international monetary transfers.
Non-governmental organizations (NGOs) play a major role in distributing
aid - examples include ActionAid, Oxfam, and the
Mercy Corps. Many non-profit charitable organizations solicit donations from the public to
support their work; charitable foundations often oversee an endowment which they
invest and use the proceeds to support aid organizations and other causes. Aid organizations may provide both humanitarian and
development aid, or specialize in one or the other. A number of aid NGOs have an affiliation with a religious denomination.
Many NGOs conduct their own international operations - distributing food and water, building pipelines and homes, teaching,
providing health care, lending money, etc. Some government aid agencies also conduct direct operations, but there are also many
contracts with or grants to NGOs who actually provide the desired aid.
Scholarships to foreign students, whether from a government or a private school or university, might also be considered a type
of development aid.
Types of aid
(The use of the term "given" in this section is potentially misleading. Almost all aid from multilateral donors (e.g. World
Bank) is in the form of loans.)
- Project aid: Aid is given for a specific purpose e.g. building materials for a new school.
- Programme aid: Aid is given for a specific sector e.g. funding of the education sector of a country.
- Budget support: A form of Programme Aid that is directly channelled into the
financial system of the recipient country.
- Sectorwide Approaches (SWAPs): A combination of Project aid and Programme aid/Budget Support e.g. support for the education
sector in a country will include both funding of education projects (like school buildings) and provide funds to maintain them
(like school books).
- Food aid: Food is given to countries in urgent need of food supplies, especially if they have just experienced a natural
disaster.
- Technical assistance: Educated personnel, such as doctors are moved into developing
countries to assist with a program of development. Can be both programme and project aid.
- Emergency aid: This is given to countries in the event of a natural disaster or
human event, like war, and includes basic food supplies, clothing and shelter.
Aid terms related to DAC members
Other Terms
- Tied aid: Aid that must be spent in the country providing the aid (the donor country) or a
specified group of countries.
- Disbursements: Aid that is actually provided, as opposed to the amount promised (commitment).
Humanitarian aid
-
Humanitarian aid is rapid assistance given to people in immediate distress by individuals, organisations, or governments to
relieve suffering, during and after man-made emergencies (like wars) and
natural disasters. The term often carries an international connotation, but this is not
always the case. It is often distinguished from development aid by being focussed on
relieving suffering caused by natural disaster or conflict, rather than removing the root causes of poverty or vulnerability.
The provision of humanitarian aid or humanitarian
response consists of the provision of vital services (such as food aid to
prevent starvation) by aid agencies, and the provision of funding or in-kind services (like
logistics or transport), usually through aid agencies or the government of the affected country. Humanitarian aid is
distinguished from humanitarian intervention, which involves armed forces
protecting civilians from violent oppression or genocide by state-supported actors.
The Geneva Conventions give a mandate to the International Committee of the Red Cross and other impartial
humanitarian organizations to provide assistance and protection of civilians during times of war. The ICRC, has been given a
special role by the Geneva Conventions with respect to the visiting and monitoring of
prisoners of war.
The United Nations Office for the Coordination of
Humanitarian Affairs (OCHA) is mandated to coordinate the international humanitarian response to a natural disaster or
complex emergency acting on the basis of the United Nations General Assembly Resolution 46/182.
The Sphere Project handbook, Humanitarian
Charter and Minimum Standards in Disaster Response, which was produced by a coalition of leading non-governmental
humanitarian agencies, lists the following principles of humanitarian action:
- The right to life with dignity.
- The distinction between combatant and non-combatants.
- The principle of non-refoulement.
Development aid
-
Development aid is aid given by developed countries to support development in
general which can be economic development or social development in developing countries. It is distinguished from humanitarian
aid as being aimed at alleviating poverty in the long term, rather than alleviating suffering in the short term.
The term "development aid" is often used to refer specifically to Official
Development Assistance (ODA), which is aid given by governments on certain concessional terms, usually as simple
donations. It is given by governments through individual countries' international aid
agencies and through multilateral institutions such as the World Bank, and by individuals through development charities such as
ActionAid, Caritas, Care International or Oxfam.
The offer to give development aid has to be understood in the context of the Cold War. The
speech in which Harry Truman announced the foundation of NATO
is also a fundamental document of development policy. "In addition, we will provide military advice and equipment to free nations
which will cooperate with us in the maintenance of peace and security. Fourth, we must embark on a bold new program for making
the benefits of our scientific advances and industrial progress available for the improvement and growth of underdeveloped areas.
More than half the people of the world are living in conditions approaching misery. Their food is inadequate. They are victims of
disease. Their economic life is primitive and stagnant. Their poverty is a handicap and a threat both to them and to more
prosperous areas. For the first time in history, humanity possesses the knowledge and skill to relieve the suffering of these
people."
Development aid wanted to offer technical solutions to social problems without altering basic social structures. Wherever even
moderate changes in these social structures were undertaken, e.g. the land reforms in Guatemala in the early 1950s, the United States usually forcefully opposed these changes.
Criticism of aid
Aid is seldom given from motives of pure altruism, for instance it is often given as a means
of supporting an ally in international politics; it may also be given with the
intention of influencing the political process in the receiving nation. Whether one considers such aid bad may depend on whether
one agrees with the agenda being pursued by the donor nation in a particular case. During the conflict between communism and capitalism in the twentieth century, the champions of those
ideologies, the Soviet Union and the United States,
each used aid to influence the internal politics of other nations, and to support their weaker allies. Perhaps the most notable
example was the Marshall Plan by which the United
States, largely successfully, sought to pull European nations toward capitalism and away
from communism. Aid to underdeveloped countries has sometimes been criticised as being more in the interest of the donor than the
recipient, or even a form of neocolonialism.[1] Asante lists some specific motives a donor may have for giving aid: defense
support, market expansion, foreign investment, missionary enterprise, cultural extension.[2] In recent decades, aid by organisations such as the International Monetary Fund and the World Bank has been
criticised by some as being primarily a tool used to open new areas up to global capitalists, and being only secondarily, if at
all, concerned with the wellbeing of the people in the recipient countries. This is a controversial subject.
Besides criticism of motive, aid may be criticised simply on th ground that it was not effective: ie., it did not do
what it was intended to do or help the people it was intended to help. This is essentially an economic criticism of aid.
The two types of criticism are not entirely separate: critics of the ideology behind a piece of aid are likely to see it as
ineffective; and indeed, ineffectiveness must imply some flaws in the ideology. Statistical studies have produced widely
differing assessments of the correlation between aid and economic growth, and no firm consensus has emerged to suggest that
foreign aid generally does boost growth. Some studies find a positive correlation, but others find either no correlation or a
negative correlation. In the case of Africa, Asante (1985) gives the following assesment:
Summing up the experience of of African countries both at the national and at the regional levels it is no exaggeration to
suggest that, on balance, foreign assistance, especially foreign capitalism, has been somewhat deleterious to African
development. It must be admitted, however, that the pattern of development is complex and the effect upon it of foreign
assistance is still not clearly determined. But the limited evidence available suggests that the forms in which foreign resources
have been extended to Africa over the past twenty-five years, in so far as they are concerned with economic development, are, to
a great extent, counterproductive.[3]
He sees aid as interfering in various ways with the development of local initiative and self-determination. Also, since about
half of all aid is not gifts, but loans, aid has greatly increased the debt burden of the
recipient countries, and servicing the loans creates a great foreign currency problem for them.
The economist William Easterly and others argue that aid can often distort
incentives in poor countries in various harmful ways. Aid can also involve inflows of money to poor countries that have some
similarities to inflows of money from natural resources that provoke the resource curse.
[4][5]
Many criticize U.S. Aid in particular for the policy conditionalities that often accompany it. Emergency funds from the
International Monetary Fund and World Bank, for instance, are linked to a wide range of free-market policy prescriptions that
some argue interfere in a country's sovereignty.
In an episode of 20/20 Stossel showed flaws in the distribution of the foreign aid, and the
governments of countries receiving aid.
- Food given as aid often ended up on markets being sold privately
- The government receiving aid often had secret bank accounts in which it hid foreign aid money for private purposes
James Shikwati, a Kenyan economist, has argued that
foreign aid causes harm to the recipient nations, specifically because aid is distributed by local politicians, finances the
creation of corrupt government bureaucracies, and hollows out the local economy.
In an interview in Germany's Der Spiegel magazine, Shikwati uses the example of food aid
delivered to Kenya in the form of a shipment of corn from America. Portions of the corn may be
diverted by corrupt politicians to their own tribes, or sold on the black market at prices that undercut local food producers.
Similarly, Kenyan recipients of donated Western clothing will not buy clothing from local tailors, putting the tailors out of
business. [6]
See also
Notes
- ^ Lars Schoultz, “U.S.
Foreign Policy and Human Rights Violations in Latin America: A Comparative Analysis of Foreign Aid Distributions”, Comparative
Politics, Volume 13, Number 2, January 1981 (2 of the graphs from the study can be found here)
- ^ Martha Knisely
Huggins, Political Policing: The United States and Latin America, Duke University Press (July 1998) ISBN 0-8223-2172-6 p. 6
References
- Håkan Malmqvist (2000), "Development Aid, Humanitarian Assistance and Emergency Relief", Ministry for Foreign Affairs, Sweden
[1]
- The White Man's Burden : Why the West's Efforts to Aid the Rest Have Done So Much Ill and So Little Good by William
Easterly
- Andrew Rogerson with Adrian Hewitt and David Waldenberg (2004), "The International Aid System 2005–2010 Forces For and
Against Change", ODI Working Paper 235 [2]
- "The US and foreign aid assistance" [3]
- Millions Saved A
compilation of case studies of successful foreign assistance by the Center for Global Development.
- ActionAid, May 2005, "Real Aid" - analysis of the proportion of aid wasted on consultants, tied aid, etc
Cross references
- ^ S.K.B. Asante, "International Assistance and International Capitalism:
Supportive or Counterproductive?", in Gwendolyn Carter and Patrick O'Meara (eds) African Independence: The First Twenty-Five
Years, 1985; Bloomington, Indiana, USA; Indiana University Press. p. 249.
- ^ S.K.B. Asante, "International Assistance and International Capitalism:
Supportive or Counterproductive?", in Gwendolyn Carter and Patrick O'Meara (eds) African Independence: The First Twenty-Five
Years, 1985; Bloomington, Indiana, USA; Indiana University Press. p. 251.
- ^ S.K.B. Asante, "International Assistance and International Capitalism:
Supportive or Counterproductive?", in Gwendolyn Carter and Patrick O'Meara (eds) African Independence: The First Twenty-Five
Years, 1985; Bloomington, Indiana, USA; Indiana University Press. p. 265.
- ^ Collier, Paul (2005). Is Aid Oil? An analysis of whether Africa can absorb
more aid. Centre for the study of African Economies, Oxford University.
- ^ Djankov, Montalvo, Reynal-Querol (2005). The curse of aid. The World Bank.
http://www.econ.upf.edu/docs/papers/downloads/870.pdf
- ^ Thilo Thielke (interviewer), translated by Patrick Kessler. "For God's
Sake, Please Stop the Aid!" http://www.spiegel.de/international/spiegel/0,1518,363663,00.html
Further Reading
- Banerjee, Abhijit Vinayak (2007). Making Aid
Work. The MIT Press. ISBN 978-0-262-02615-4.
- Calderisi, Robert (2006). The Trouble with
Africa: Why Foreign Aid Isn't Working. Macmillan. ISBN 1403971250.
- Easterly, William (2006). The White Man's
Burden: Why the West's Effort to Aid the Rest Have Done So Much Ill and So Little Good. Penguin. ISBN
1594200378.
- Lancaster, Carol; Ann Van Dusen (2005).
Organizing Foreign Aid: Confronting the Challenges of the 21st Century. Brookings Institution Press. ISBN
0815751133.
- Sogge, David (2002). Give and Take: What's the
Matter with Foreign Aid?. Zed Books. ISBN 1842770691.
External links
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