Challenging Stereotypes: Where has all the aid money gone?

It is difficult to get a definitive number of how much money in total has been given to developing countries in development aid/overseas development assistance but the number must be in the trillions of dollars. I believe in helping people and of recognising the opportunity for people to use their ideas and experience to help themselves.
Sadly no matter how far we have come in the developed nations of Europe and the United States development aid does not allow people to drag themselves out of poverty and to build a good life for them and their families. Instead it perpetuates a patronising cycle of dependence, rules and sadly racism. No one really wants to go ‘cap in hand begging for money.’
It is true that a large proportion of development aid is used for humanitarian emergencies but the amount of money used for the relocation and salaries of international staff spends a good chunk of money intended for the starving crying women and children. There has to be a better way where recipients of aid DO play a role in improving their lives and those of their communities, not just on grant applications but in a practical and meaningful way.
The EU Aid programme has introduced new programmes in several developing countries to set up food co-operatives where each person has a certain role to play in cultivating crops and selling them. The money generated in profit is put back into the co-operative for the next sowing season and for the salaries of all of the members. The EU also trains co-operative members in good farming and husbandry techniques, which are not only beneficial to the co-operative but also to their own small food gardens that produce food for their families.
A new country has emerged on the international development scene. China, the once isolationist reclusive and insulated juggernaut, has recently emerged as the new player on the block with an alternative development aid model. Ask most people in Africa which international country they have visited and 99% of them will say China. This is not surprising since China began a silent development aid programme during the 1990s.
The Chinese model is based on the foundation of business. Identifying opportunities and creating new markets in developing countries. By encouraging some of their brightest entrepreneurs to take the plunge and open shop in some of the poorest countries in the world, China has transported factories and new industries to Africa. Chinese entrepreneurs establish textile factories and launch ambitious building projects like motorways, dams etc… By employing local African people they are trained on new machinery and learn new techniques of business so that they may replicate the Chinese and become the businessmen of their countries.
China couples business with development aid with nearly every business venture associated with a ‘development’ enriching initiative. Initiatives can include building a good water supply system, roads, communication infrastructure, schools and hospitals. This new model of development has been received warmly by the dignitaries of many African countries as it encourages a relationship of mutual respect, business and co-operation.
On the ground there have been some positives, some people have been successful in using the business and industrial techniques of the Chinese by setting up their own replica business or by launching their own ideas as a local business. Masses of people are employed by the various Chinese enterprises so many families have a steady income. Many African employees are invited to China for exchanges and training courses so that they can learn new techniques.
While on the negative side some Chinese enterprises have shut down local African businesses who cannot afford to compete with undercut prices. Some African employees are treated harshly with severely lower wages compared to their Chinese colleagues, and the threat of termination if they happen to get sick.
Development aid as it now stands is not working for the people it decries to help. Improvements have been made to the monitoring of how aid is spent but this is not the only issue. During the reign of Mobuto Sese Seko, the former President of Zaire, pocketed some $5 billion into his personal Swiss bank account. No one wants to see that happen again.
Development aid must be a partnership between the giver and recipient. Also business in developing countries HAS to be encouraged or they will forever remain stagnant and poverty stricken. Entrepreneurialship already exists on a micro level, if development aid would also encourage the scaling up of businesses then the results and profits could be used for the greater good to eliminate poverty in a sustainable way.
Tara Finglas – http://searchingforpeaceintheworld.blogspot.com/2010/05/challenging-stereotypes-where-has-all_29.html

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