Foreign Aid
Return to Common Sense
November 6, 2016
Section: Foreign
– Aid
“Foreign aid should
be stopped, due to government mismanagement and corruption, and let monies flow directly from business and individuals
directly to those who can most benefit”
“Foreign aid might be defined as a transfer from poor people in rich countries to
rich people in poor countries.” Douglas Casey.
Philosophy
(Background, Issues, Objectives):
In the 21st century, the US government operates five major
categories of foreign assistance:
- bilateral development aid
(the largest amount),
- economic assistance
supporting U.S. political and security goals,
- humanitarian aid,
- multilateral economic
contributions, and
- military aid.
- Other large sums are given
to non-government agencies and individuals in other countries through
American foundations, churches and other organizations.
Over the past four decades the U.S. has
given over $480 billion in development assistance.
- In 2003 U.S.
gave over $23 billion, with most going to Near East and South Asia.
- Recent poll
showed American aid is single most important action people value for the
U.S.
- Visible U.S.
assistance can have a positive impact on foreign public opinion.
- In 2013 budget,
the International Affairs budget (aka 150 Account) was 56.2 billion.
- Studies have
found no relationship or a negative relationship between economic
assistance and growth and development in recipient nations.
U.S. is the leading giver of
charitable contributions in the world.
- In 2006
Americans gave $295 billion to charity, up 4.2% over 2005.
o
Estimates place percentage of American households
that make monetary contributions each year as 70-80%.
o
In 2006 Americans contributed privately $34.8
billion to individuals and organizations in developing countries.
§
8.8 billion was
contributed from religious organizations.
- U.S. gave $95.2 billion to the “developing world” in
2005.
o
Individuals gave $61.7 billion.
o
Foundations contributed $2.2 billion and
corporations donated $5.1 billion.
o
Private and voluntary organizations (including
volunteer time) gave $16.2 billion.
o
Universities and colleges gave $4.6 billion.
o
Religious organizations donated $5.4 billion.
·
Number 2 giver was Britain
at $19.8 billion, followed by Japan at $19.7, then France at $17.5.
The
government channels about half of its economic assistance through a specialized
agency, the United States
Agency for International Development (USAID).
- USAID was
chartered under the Foreign Assistance Act of 1961
- Assists
countries to recover from disaster, trying to escape poverty, and engaging
in democratic reforms.
- Further foreign
policy interests in expanding democracy and free markets while improving
the lives.
In 1996, the UN declared that 70
countries, aid recipients all, were poorer than in 1990.
- Simply providing
money to third world countries will not buy political stability, spur
social progress, or eliminate poverty.
- People in many
of these countries are no better off today in terms of GDP per capita.
- Corrupt and
institutionally weak regimens have siphoned off much of this aid money.
o
Ruling elite make personal fortunes,
distribute funds based on nepotism and favoritism.
Vast majority of the foreign aid
recipients routinely vote against the U.S. in the U.N at an average rate of
74%.
- U.S. funds 25%
of United Nations budget, which gives $1.4 billion to U.N. programs and
agencies.
- Only 26% of
foreign aid went to countries that endorsed American initiatives and
causes.
- In 2003 Egypt
received over $2 billion, but voted against the U.S. 79% of the time.
- In 2003 Jordan
received over $1 billion, but voted against the U.S. 71% of the time.
- Foreign aid can become like a narcotic growing dependence on
outside aid vs. developing internal capabilities.
- Much of foreign
aid is siphoned off in various ways by the ruling elites/
o
According
to an old UN report, in 1991 alone, $200 billion of AID ended up in foreign
private bank accounts of African politicians and government officials.
o
Aid
kills democracy because it makes being in power enormously lucrative.
o
Refusal to relinquish
or share power in African countries that leads to insurgencies.
Principles:
Help our allies.
- Incent our
potential enemies to change.
Shared characteristics and principles
of foreign aid projects that work:
·
Local
ownership and initiative (Successful programs and
projects reflect actual needs of the recipient countries as expressed by local
actors, rather than simply reflecting instructions of what projects and
programs may be available for local recipients from USAID.).
·
Partnership (Successful
projects and programs demonstrate collaboration between American and
developing-country institutions, especially private institutions.).
·
Leverage (The U.S. government
can take advantage of the myriad new sources and techniques of global support
for developing countries, including foundations, private voluntary
organizations, corporations, universities, and remittances.).
·
Flexibility (Efforts by
today's aid projects to tackle new problems are often hampered by decades-old
legislative mandates.).
·
Peer-to-Peer Approaches (Long
after USAID's financial role has ended, U.S. foreign assistance can allow
America's professionals and institutions to build relationships with their
developing country counterparts on the basis of perceived professional
self-interest.).
·
Technology Adaptation and Adoption (Some of the most widely acknowledged foreign assistance
successes, such as the Green Revolution, have at their core the application of
technology to improve the human condition.).
·
Self-Reliance (The most
important steps taken to improve the long-term success of developing nations
will come from within those countries.).
·
Continuous Information Feedback (The best evaluation systems are not simply tasks that result in
reports.).
·
Risk (A partnership and
venture-funding culture implies a tolerance for risk and a frank willingness to
recognize failures.).
Recommendations:
Short
Term, Integrate all agency opinions (State, Intelligence, Defense, UN,
USAID) into a coherent unified foreign policy.
- Ensure U.S. government
humanitarian aid is visible to receiving public.
- Include U.S.
private charity into total American support picture.
Promote free trade and investment
accords as an alternative to aid.
- Grant trade
preferences to developing countries as interim step to free trade
agreements.
Long
Term, Establish strong oversight over use of
taxpayer funds to finance foreign aid.
- Discontinue the
current foreign aid program and policies ($7B annually)
o
Eliminate the Development Assistance Program.
o
Eliminate Overseas Private Investment Corporation.
o
Eliminate Trade and Development Agency.
- Remove USAID independence in order to directly link foreign aid and
country behavior.
o
Explicitly link disbursement of U.S. development
assistance to support for U.S. policy priorities in the U.N.
o
Require the State Department to include information
on foreign assistance in its annual report to Congress on voting practices in
the United Nations.
o
Engage directly with Washington embassies on U.S.
priorities in the U.N.
- Utilize a scorecard to rate economic, social, and
political behavior as input to aid calculation.
References:
“Are We
Throwing U.S. Foreign Aid $ Down the Toilet?” dated October 13, 2003
published by StrangeCosmos.Com at http://www.strangecosmos.com/content/item/24974.html .
“Foreign Aid from USA - How Those Countries
Vote” dated June 4,
2004 published by StrangeCosmos.Com at http://www.strangecosmos.com/content/item/100384.html .
“How
Will Greater Foreign Aid Help the Poor This Time?” by William
Easterly dated March 28, 2006 published by The Heritage Foundation on http://www.heritage.org/Research/TradeandForeignAid/hl950.cfm .
“Why
Doesn’t Aid Work?” by William Easterly dated April 3, 2006
published by The Cato Institute on http://www.cato-unbound.org/2006/04/03/william-easterly/why-doesnt-aid-work/ .
“How
Will the Poor Trade Up?” by Jim Kolbe dated August 8. 2006 published by
Washington Post at http://www.washingtonpost.com/wp-dyn/content/article/2006/08/07/AR2006080701234.html .
“America’s
image” by Helle Dale dated October 25, 2006
published by Washington Times at http://www.washtimes.com/op-ed/hdale.htm .
“U.S.
aid ship cures public opinion” by Anju S. Bawa dated November 17, 2006 by Washington Times at http://www.washtimes.com/world/20061116-111328-7422r.htm .
“The
Challenge of Global Health” by Laurie Garrett dated January 13, 2007
published by Real Clear Politics at http://www.realclearpolitics.com/articles/2007/01/the_challenge_of_global_health.html .
“A Second Look at Microfinance” by
Thomas Dichter dated February 15, 2007 published by
Cato Institute at http://www.cato.org/pubs/dbp/dbp1.pdf .
“Privately
Generous” by Shawn Macomber dated March 1,
2007 published by The American Spectator at http://www.spectator.org/dsp_article.asp?art_id=11072 .
“Americans
are ‘Cheapskates’ over Lack of Foreign Aid Spending?” by
Warner Todd Huston dated May 5, 2007 published by American Daily at http://www.americandaily.com/nucleus/plugins/print/print.php?itemid=18675 .
“Americans
are ‘Suckers’ When it Comes to Giving” by Gordon Bishop
dated July 11, 2007 published by American Daily at http://www.americandaily.com/article/19546 .
“Please
Stop the Aid” by Nancy Salvato dated
September 17, 2007 published by American Daily at http://www.americandaily.com/article/20298 .
“Pay
for Performance” by Karen Porter dated January 30, 2008 published by
The American Magazine at http://www.american.com/archive/2008/january-01-08/pay-for-performance .
“A
Nation of Givers” by Arthur C. Brooks dated March/April 2008
published by The American Magazine at http://www.american.com/archive/2008/march-april-magazine-contents/a-nation-of-givers .
“America’s
Generosity is Unmatched” by Star Parker dated June 3, 2008 published
by Real Clear Politics at http://www.realclearpolitics.com/articles/2008/06/americas_generosity_is_unmatch.html .
“Getting
More Out of Foreign Aid” by Ed Fuelner
dated September 4, 2008 published by Town Hall at http://townhall.com/columnists/EdFeulner/2008/09/04/getting_more_out_of_foreign_aid .
“Foreign
Aid: What Works and What Doesn’t” by Nicholas Eberstadt and Carol C. Adelman dated October 27, 2008
published by American Enterprise Institute at http://www.aei.org/publications/filter.all,pubID.28842/pub_detail.asp .
“How
Foreign Aid Destroyed Africa” by Jamie Glazov
dated December 3, 2008 published by Front Page Magazine at http://www.frontpagemagazine.com/Articles/Read.aspx?GUID=D1ED8113-B52B-4674-9959-AD7902604D8B .
“The
Welfare State Writ Large and Small” by Steven D. Laib
dated March 26, 2009 published by Intellectual Conservative at http://www.intellectualconservative.com/2009/03/25/the-welfare-state-writ-large-and-small/ .
“Sen. Paul Proposes Serious Cuts” by
Chris Edwards dated January 31, 2011 published by Cato Institute at http://www.downsizinggovernment.org/sen-rand-paul-proposes-serious-cuts
.
“The
U/S. Should Link Foreign Aid and U.N. General Assembly Voting” by
Brett D. Schaefer and Anthony B. Kim dated August 8, 2011 published by The
Heritage Foundation at http://www.heritage.org/Research/Reports/2011/08/The-US-Should-Link-Foreign-Aid-and-UN-General-Assembly-Voting
.
“Is Bill Gates the World’s Richest Useful Idiot?” by Tom
Deweese dated January 4, 2012 published by Canada
Free Press at http://www.canadafreepress.com/index.php/article/43673
.
“More
‘Conservative’ Foreign Aid?” by Brett Schaeffer dated
March 5, 2012 published by National Review Online at http://www.nationalreview.com/articles/292548/more-conservative-foreign-aid-brett-schaefer
.
“Foreign
Aid Recipients Vote Against the U.S.” by
Brett D. Schaefer and Anthony B. Kim dated February 25, 2013 published by The
Heritage Foundation at http://www.heritage.org/research/reports/2013/02/un-general-assembly-foreign-aid-recipients-vote-against-the-us
.
“Thirty
Years of Voting in the U.N. General Assembly: The U.S. Is Nearly Always in the
Minority” by Brett D. Schaefer and Anthony B. Kim dated September 17,
2013 published by The Heritage Foundation at http://www.heritage.org/research/reports/2013/09/the-united-states-30-years-of-voting-in-the-united-nations-general-assembly
.