Guest Post: Stephen Hoffman

INTERNATIONAL AID- BAD FOR UK, BAD FOR THE DEVELOPING WORLD

By Stephen Hoffman, Candidate for Deputy Chairman, Political

If only government-to-government international aid did help. Unfortunately, as highlighted by Dambisa Moyo in her book Dead Aid, it often does not. If you want to see the developing world flourish get the private sector involved in this area, as unlike the Government frequently does it will not make a pigs ear of it.

If you want to help the world's poorest freeing trade is the way. That means getting rid of CAP that dumps goods on African farmers and creates a tariff wall that developing nation’s farmers cannot compete against. Additionally due to CAP working against competition, customers all across Europe are paying more in food costs. Nonetheless, in the EU’s infinite wisdom this makes up over 40% of its budget. No wonder the WTO (World Trade Organisation) wants to see tariffs in Europe reduced by 80% to give developing nation farmers a chance to compete on an even playing field. On top of this you have many American tariffs and subsidies that add to this problem. Getting rid of these trade barriers would be far better at alleviating poverty. Perhaps this view is just ignored, because it smacks too much of common sense.

Moreover, we give aid to countries like Pakistan who is using it when it comes to the ISI as the Wikileaks document showed, to protect known terrorists. This seems to be giving international aid in a way that is contrary to the national interest. The Government continually says it wants to direct the aid budget in a way that works in our national interest, yet this is an example of it doing the exact opposite.

Then there are countries like India and China who are economic powerhouses that we give international aid to that simply do not need it. Yes there are poor people in these countries, but surely it is the job of these government’s who have ample amount of money of their own to help their people on poverty, not rely on the handouts of other nations. After all, isn’t this the basis of national sovereignty that governments have to take national responsibility? What’s the point of having elections, if you just delegate difficult decisions to others?

The common problem here is that that our Government’s aid helps prop up corrupt regime who use it to expand the size of the state and thus their control over people, who are forced to become more dependent on a state that robs individuals of their freedom. Figures back this up as by 2002 The African Union estimated that corruption was costing the continent $150 million a year. Consequently government-to-government aid is not just ineffective, it is positively harmful.

Additionally it has not tackled poverty in the developing world. Dambisa Moyo points out that over the past 60 years at least $1 trillion of development-related aid has been transferred from rich countries to Africa. Yet real per-capita income today is lower than it was in the 1970s, and over 350 million people a day are living on less than a dollar a day, a figure that has nearly doubled in two decades. However, people still haven’t learned the lesson that free trade not aid handouts is the path to prosperity. Once again on the altar of good intentions everyone loses.

Most people want to help the poorest in the world, but government-to-government international aid apart from in emergency situations is not the way. It is simply throwing money away that will often be used by corrupt and murderous dictators to lead their lavish lifestyles and kill their own people. It's giving money to governments that do not have our national interests at heart. It is time the government saw sense and slashed the International aid budget for everyone’s sake.

Read Stephen's policies here.