Sunday, July 24, 2011

Foreign Aid Review - Summary

From Hugh White's article on the levels of aid given by Australia (written on 19 July), we can discern that White opines:

- This country spends too much on aid

- Aid that has been given has varying amounts of effectivity

- Poverty, although reduced, is still rife (1000000000 people earning <$1.25 a day)

- The World Bank predicts further decline in poverty numbers

- The primary reason of growth in Third World nations is not aid intake but economic growth

It is my belief that Australia is contributing more aid as a result of either pressure from other parts of the First World or guilt permeated by publications (often from the UN) on increasing poverty. It needs to be understood that while aid may give immediate help, growth is the primary reason of recovery economically - White is completely correct in this respect. His statement on the dwindling power of the West is provocative (and maybe slightly brash) but raises an interesting point - this article provides very interesting commentary and raises a good point - perhaps poverty (like many other problems that affect the world) has solutions beyond continual spending.

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