It's not the size that counts
Much has been made lately about the 0.7% target for foreign aid - it's the principle, first advanced by Canada in 1969, that wealthy nations should set aside 0.7% of their GDP for international aid. It topped the agenda at the recent G8 meetings in Gleneagles, Scotland, and was the source of much debate. Some nations, mainly European ones, have decided to set a timeline as to when they'll finally reach the target. Canada's PM, Paul Martin, has refused to set a timeline, and George W Bush doesn't really seem too enthused, either.
While giving more foreign aid is certainly great, the idea of this magical 0.7% target and timelines for reaching it isn't the way we should be going about helping those parts of the world that need it. Foreign aid is great, but at some point we do have to move past the notion that it will solve all of the developing world's problems.
Untying aid The fact that a huge proportion of aid given from the world's wealthy nations is tied is a problem that should be dealt with right away. Instead of trying to force nations to give more money, we should work to untie more of the aid that they're already giving. Tied aid means that it is given with restrictions - often, it must be used to buy products from the donor country. 60-75 percent of Canadian aid is tied, and an equally large (if not larger) percentage is also tied when we look at countries such as the United States, the United Kingdom, France and Japan. This will make a world of difference.
Focus on governance Again, rather than pushing for more aid, we should ensure that the aid we are giving to the developed world is given as a reward for good governance and a commitment to the rule of law. I know this seems callous, as those needy populations under dictators will not receive the same aid as other countries, but we do need to deal with the severe governance problem in parts of Africa. This kind of qualified aid should be linked with a stronger effort internationally to pressure tyrants and despots into retirement. Instead of giving Robert Mugabe $50-million in aid that will likely end up in his own personal pocket, let's give it to Thabo Mbeki of South Africa to use for AIDS work.
If we focus not so much on getting more aid to the developing world, and rather on improving the quality and effectiveness of the aid that we are currently giving, we'll be much better off.
Related Reading
Development: Tied Aid Strangling Nations, Says UN (Global Policy Forum)
Tony Blair's Summit Meeting (New York Times)
