Are overseas aid transfers an effective means of fighting poverty?
As with other social disciplines, that of poverty continues to be at the center stage of practically all the international donor agencies as well as the rich nations of the world. This is also evidenced in the most affected group of countries around the world, which include amongst other the Sub-Sahara countries of Africa in particular, and the third world in general.
Though there have been stringent efforts on the part of organizations such as the International Monetary Fund (IMF), the World Bank, and the different organizations within the United Nations, there is little evidence to suggest that overseas aid transfers have indeed benefited or have served to reduce poverty. On the contrary, majority of the studies carried out by the said organizations, as well as results of different aid programmes in equally varied group of countries around the world have revealed that overseas aid transfers have in fact failed to reduce poverty.
At the most, overseas aid transfers through different international aid programmes have merely highlighted development targets amongst the poor countries of the world, and emphasized on a number of poverty reduction measures without effectively pointing to the measures for accomplishing, or directly benefiting poor populations of the world. It is this disputed role of overseas aid transfers and its implications whether it can fight poverty that will constitute the contents of the following dissertation.
Overseas aid transfers for ending or fighting poverty continues to remain a highly disputed issue amongst the poor countries of the world, as also the rich nations who as major players within the international donor agencies can play an effective and positive role in fighting poverty across the globe. This is particularly so when a larger body of economists hold the view that overseas aid transfers has left negative implications on most, if not all the aid recipient nations of the world. One may thus observe that, instead of assisting poor populations come out of depths of poverty, overseas aid transfers have in fact added to their woes and problems. An example to this respect may be given of majority of the countries in Sub-Sahara Africa, as well as those of South Asia where the results of different aid programmes have practically failed at reducing poverty. In addition, the countries of the said regions have also shown that periods after respective eras of implementing major aid programmes, there was significant evidence to suggest a poor performance on social indicators across the board; and instead of the respective country and her population coming out of poverty, there was an increased level of income poverty which further confirms the notion that overseas aid transfers are not at all beneficial for the aid-recipient nations.
The last decade of the past century in particular is further witness to the renewed focus on poverty reduction. Examples of which may be found in the implementation of various programs and strategies. These include ‘Poverty Reduction Strategies (PRS)’ by the International Monetary Fund and the World Bank, the relief provided under such programmes as ‘Highly Indebted Poor Country Initiative (HIPC)’, setting up of ‘International Development Targets (IDTs)’, as well as the agreement on a common set of ‘Millennium Development Goals (MDGs)’ most of which are set for the year 2015, taking 1990 as the base year. This was jointly agreed by leaders representing more than 180 nations of the world at the ‘September 2000 Millennium Summit’ held under the aegis of the United Nations Development Programmes, a sister organization of the United Nations Organizations. (White, 1996; White 2001; Mosley, 1987; Mosley et al, 2004; Vandermoortele, 2002; Chossudovsky, 1998).
Literature Review on the Implications of Aid At Fighting Poverty
The ‘Millennium Development Goals’ as agreed upon by the United Nations Development Programme offer an indigenous agenda for fighting poverty and bringing significant improvement in the lives of more than a billion people across the globe. The ‘Millennium Development Goals’, most of which are set for the year 2015 while taking 1990 as the base year include eradication of extreme poverty and hunger; achieving universal primary education, promotion of gender equality and empowerment amongst women, reduction of child mortality rates, bringing improvements in maternal health, combating HIV/AIDS, malaria and other diseases, ensuring environmental sustainability, and development of a global partnership for development. (Vandermoortele, 2002 and Chossudovsky, 1998)
Yet, the ‘Millennium Development Goals’ as stated above bear little significance in light of the major criticisms in varied literature which duly highlight the failure of overseas aid for fighting poverty across the globe. One such criticism may be observed by Mosley who in his article notes that of several thousand aid projects which have been completed since the 1950s there is only a handful on which anyone has even made the attempt to find out whether the poor got any benefit from them , and called this lack of knowledge disgrace (Mosley, 1987: 163). This being the findings and comments from an author from the decade of the 1950s, that of the decade of the 1990s and thereafter offers little change, as also evidenced from a number of factors.
Tags: Africa, globe, IMF, poor countries, poverty, poverty reduction, social disciplines, united nations
