Foreign aid to poor countries has done more harm than good

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Foreign aid to poor countries has done more harm than good

05 Dec 2011

The panel discuss the wisdom of the West’s continued donation of aid to developing nations.

Arguing in favour of the proposal are Aidan Hartley, Frederik Erixon, and David Rieff. Aidan Hartley begins by suggesting that formerly impoverished Asian countries that have been spared the aid "inflicted" on Africa are now booming and making rapid progress, whereas the situation in Africa has not improved at all, and that for every successful aid project in Africa there are many more expensive failures. Frederik Erixon argues that he is not against aid, but that if it is to be distributed effectively, then it is necessary to be more selective in who we are giving it to - aid is only to be given to countries who wish to progress, and should not be given to corrupt governments as has happened in the past. David Rieff suggests that the vast amounts of money given in aid have merely been spent "painfully developing the perfect bandaid", and has not targeted the underlying problems. He suggests that it is no use constantly striving for a workable aid solution because there isn't one - instead he advocates a reform of terms of trade.

Arguing against the proposal are Ian Goldin, Marucs Manuel, and Rory Stewart OBE. Ian Goldin begins by disagreeing with Aidan Hartley, pointing out that foreign aid has indeed helped many Asian countries, such as South Korea, Vietnam, and Taiwan. He goes on to say that aid has undoubtedly been misused in the past, but that aid distribution is now based upon giving aid where it can be most effectively used. Marcus Manuel argues against the motion, pointing to a number of success stories, and the fact that 12 of the countries in Africa that received large amounts of aid now have economies that exceed 5% growth per year. Rory Stewart argues that aid is not hindering the development of African countries, but rather that we need to lower our expectations of what aid can achieve in Africa. He says that many arguments levelled against foreign aid are outdated and irrelevant to modern projects, and that whilst foreign aid will not necessarily generate economic development, it has been an enormous factor in the fight against poverty and disease.

First Vote: 244 For, 240 Against, 219 Don't Know

Final Vote: 336 For, 335 Against, 43 Don't Know