A Conservative View On Development Aid: Revaluing Peter Bauer's Legacy
From the desk of Dirk Crols on Mon, 2011-03-28 09:00
One of Brussels' latest rather brutal infringements of member states' sovereignty is the proposal from European Commissioner for Development Andris Piebalgs to force the national governments to spend 0.7 percent of their Gross National Income (GNI) to development aid. If they fail to meet this imposed objective, the Commission will impose sanctions.
Forcing the member states to comply with this arbitrary norm, this '0.7 percent dogma' is not only the world upside down, it will also make problems in Africa and in other poor regions and countries even worse. Targets should be set according to demand rather than supply. Rather than imposing targets to increase aid, based on how well donor country economies are doing with no relation to Africa's economic circumstances, we should be setting targets to decrease aid, having analysed more profoundly its impact on recipient countries. The aid quantity argument - the assumption that more aid money would automatically lead to more development - is indeed a fallacy. The facts are crystal-clear. Over the past 60 years, at least one trillion in aid has been transferred from so-called rich countries to Africa. Yet real per-capita income today is lower than it was in the 1970s, and more than 50 percent of the population lives on less than a dollar a day, a figure that has nearly doubled in decades.



