Global official aid falls – NZ languishes at the back

Pathetic.

Official development aid worldwide actually fell by 8.4%, in real terms, last year. This meant a drop from 0.31% to 0.28% of OECD member’s GNI, rather than rising up towards the 0.7% of GNI agreed to at the Gleneagles G8 and UN Millennium + 5 summits in 2005.

Much of the change was because debt relief programs last year were not repeated – they should be and they should be extended.

Get informed on this stuff by reading Stiglitz’s book – “Making Globalization Work“, which captures the concerns of the globalization activists and NGOs and answers with some very practical solutions. It’s highly readable to boot.

NZ’s ODA contributions rose by 3.7%, but we are languishing at the back of the pack in dollar (acceptable as we are tiny) but also %GNI terms.

Some charts

OECD

OECD

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4 Responses to Global official aid falls – NZ languishes at the back

  1. Depends on your point of view. Thare’s a lot of evidence to suggest that all that this Western aid has produced is a dependency culture and corrupt agency behaviour in aid’s recipient governments.

    It sounds rough, but if we concentrated on education and infrastructure, and got out over time, would aid recipients start to fend for themselves? Our current methods seem to get them even more dependent on aid, not less.

    By way of analogy, how does a country with record low unemployment have record highs in food bank demand? Because rational people don’t turn down a free lunch.

    Aid does not help in the long run, only to fix disasters and start-up conditions..

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  2. Raf says:

    Some aid is useful especially for emergency situations but perhaps certain countries could stop selling arms to all and sundry as that might have a more beneficial effect.

    I like the Kiva model myself. P2P lending. Basic, simple and avoids the bureaucrats (so far).

    http://www.kiva.org/lender/raf4143

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  3. Aww man I was just about to link to Kiva!

    I think they have the philosophy right, but it’s not the only way. Yes you need emergency aid, but emergencies shouldn’t last 10 years and if they do, you gotta be giving handouts AND some kind of infrastructure.

    However, I do think we tend to spend centuries getting other countries into problems, then want to sort those problems out in 10 years max.

    I agree with Raf, we can’t be giving aid with one hand and causing problems with the other

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  4. Pingback: Child Drugging and Evil Psychiatrists « Lance Wiggs

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