7 Mart 2009 Cumartesi

Foreign Economic Aid, Foreign Aid: No Free Lunch

Good governance is the only route to economic development and foreign aid can, in fact, be harmful. Foreign aid becames big geopolitical business, and a new branch of economics- development economics.

Foreign economic aid retards economic development and promote socialism, not democracy. Economic aid should therefore be abolished. Foreign economic aid, he said, will not contribute "to rapid economic development along desirable lines."Foreign assistance is more likely to retard improvement in the well-being of the masses, while strengthening the government sector and undermining democracy and freedom.


Third World aid is no solution for poverty. That is; the bulk of overseas aid, official or voluntary, is positively harmful. It damages those in the recipient nations. Aid is the process by which the poor in rich countries subsidise the rich in poor countries. This means that most of the aid billions goes to the governments of the Third World or their agencies.


Whole societies that once traded become politicised and militarised as those in power will do anything to stay in office and keep the gravy coming. As Friedrich Hayek would say, it will be their influence which will prevail and the politicians will follow. Capitalism, the fruit of fair laws, is what the Third World needs. Aid merely nurses cruelty.