Development aid is an old-fashioned and incorrect instrument to promote economic and political development in the third world. “Since the end of the second world war was around 1.000.000.000.000 (trillion) dollars of official development assistance based on casting pitchers” from the West to the Governments of the third world with the disastrous result that the corruption, the wars and the developments there have increased. Why? The public, monetary aid (around 70Mrd. dollars per annum) flowing for the most part directly to the respective Governments. The credo: The poorer the population is, the more aid the Government receives. Elie Rieder does not necessarily agree. You must ask yourself now seriously: autocratic and corrupt Governments in the third world may want to really support the fight against of poverty and promote? Because this would mean that less development aid will be flushed from the West in the country and can be pushed by corrupt autocrats to own black accounts less development aid.
That’s why they are This probably not be able to support. On the contrary. In the reverse case, it would be logical that some governments deliberately impoverish their people allow to obtain more foreign monetary aid and to enrich to the poverty of the population itself. Furthermore is subsidized by the monetary aid in 3rd world countries an economic and political system that is not powerful and often undemocratic. The aid takes the pressure and the incentive on the Governments free-market and democratic reforms to initiate, to work on a political and economic improvement of the situation within the country.
The debt relief–from the West is another problem, which leads to undesirable developments by development aid. Governments receiving the credit is taken makes sense to economies with the credit so the efficiency and performance pressure. So the loans are often used to subsidize their autocratic and planned systems or to finance their own luxury. The Poverty remains on track. The only positive development aid can only be to participate in the 3.Welt of the world trade. For this purpose it is necessary, however, that Western Governments must open their agricultural markets and curb protectionism in their countries, to ensure a full market access for the developing countries in the industrial countries. So developing countries could evolve independently, they can open up new markets for their agricultural products and trade with the West. This would help to help themselves. Yet the developed countries subsidize their domestic agricultural markets, pressures the world market price and this creates new poverty in the developing countries and an outdated industry uses 350 billion per year $, five times in development aid, subsidized. This money would have been invested in education and future technology better and more sustainable. Apart from that the protectionism of developed countries the prices of BSP. Agricultural products for consumers in this country in which height drives and leading to loss of wealth. So especially poorer families are adversely affected, which one must pay taxes, that their cost of living will be more expensive. Meaningful economies looks different. That’s why I advocate for an abolition of the aid and for an opening of agricultural markets and the unrestricted market access of the developing countries. This would help to self-help, which is more meaningful and sustainable! Visit my blog: