Are aid programs helpful?

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Table of Contents

An overview of global poverty
Issues underlying global poverty and provision of aid
Meghnad Desai view on Poverty as a structural failure
Poor leadership and corruption
Current efforts to address poverty
References

Provision of aid programs to nations stricken by poverty has raised intense debate on the effectiveness of the practice in eradicating poverty. Proponents of the aid programs have lauded provision of aid as one of the most viable development steps that has seen many poor economies and needy nations all over the world gain wealth and grow towards economic stability.

On the other hand, those opposing the effectiveness of aid programs claim that it increases poverty levels since it creates dependence on aid and takes away the ability of a nation to become innovative and creative. Opponents also assert that aid programs to poor nations discourage hard work alongside creating dependency syndrome.

Aid program is a concept that has been discussed in a wide perspective by several scholars (Mehrotra 2002, p. 531). For instance, the book entitled Just give money to the poor has raised a lot of concern on the rampant rising rate of poverty in Mozambique.

According to the authors, one can quickly conclude that the gap between the poor and rich is rapidly widening irrespective of the rise in GDP especially in underdeveloped countries (Hanlon, Barrientos & Hulme 2010, p. 6). It is notable that majority of the population in Mozambique has been caught up in the poverty cycle making it difficult for them to even own basic households.

This book presents a convincing program on how to create a platform upon which poor families can build their firm financial future. In addition, the book calls for a dramatic simplification of the already existing measures of reducing poverty by the aid industry.

In this case, it questions on the need for conditioning behavior that are related to money transfer program (Hanlon, Barrientos & Hulme 2010, p.10).

Therefore, the authors argue that the best way to decimate poverty it to motivate poor people by giving them money. It s imperative to note that the authors are emphasizing that giving financial aids to individuals who are poor should not be attached to any condition in order to ensure long-term development.

Furthermore, Barrientos, Hulme and Hanlon (2010, p. 100) strongly support the provision of aid to the poor. They argue in their book Just Give Money to the Poor: The Development Revolution from the Global South that provision of aid is an effective method of reducing the gap between the poor and rich economies. They add that without aid, the gap may continue to grow.

The argument Barrientos, Hulme and Hanlon holds is indeed strong, but it is imperative to note that even with the massive achievements that aid programs have attained witnessed in the setting up of individuals and economies free from the grasps of poverty in most parts of Asia, Africa and China, provision of aid has not been able to completely eradicate poverty. In fact, in some areas in Africa and china, the aid has done very little to eradicate poverty because it is done to nations that still have institutional problems like corruption and wars.

An overview of global poverty

The state of the global poverty is shocking. It appears that although key developments are recorded every year and aid programs are provided, levels of poverty are constantly moving up. The World Bank (2010, p. 46) reports that a greater percentage of the global population still wallow in poverty and survive on less than two and half US dollars per day.

Further reports indicate that notably, about 40% of the total world population accounts for only 5% of the world incomes while the wealthiest 20% accounts for 75% of the global income (World Bank 2010, p. 46). The World Bank report continues to indicate that about 27-28% of all children are underweight while 24,000 more lose their lives daily in the poorest regions of the globe.

Issues underlying global poverty and provision of aid

In a collaborative approach, Hanlon, Barrientos and Hulme (2010, p.23) develop the idea as the only effective strategy to develop and revolutionize poor countries. The authors also reflect on the fact that developing countries give financial aid to the less developed countries with conditions attached. Additionally, they closely supervise how the funds are managed just to make sure that they are not misappropriated.

The idea of cash transfer to poorly developed countries has been controversial drawing sharp arguments from scholars and economists all over the globe. However, in this book, the authors appear to have no doubt on the merit of their suggestion.

Having had a competent and readable compendium about poor countries through research, they hold a clear track record on how such counties can develop (Hanlon, Barrientos & Hulme 2010, p. 45). To defend the claim they argue that their strategy is affordable.

Moreover, in the book, they assert that whenever money is given to the poor countries freely, they will be able to manage it effectively without major cases of misappropriation. In line with this, there is an argument that such monetary or non monetary aid will relatively reduce the rate of poverty at the grass root level.

That notwithstanding, foreign aid enhances economic growth as well as human development and also decimates the chances of lagging to poverty in future.

Nevertheless, there are two controversial issues identified in the book. These include the concept of conditioning and targeting the beneficiaries (Hanlon, Barrientos & Hulme 2010, p. 21). At this juncture, questions emerge as to whether the small grant should be given to many people and vice versa.

Moreover, there is growing debate on whether the recipients should be made to satisfy certain conditions such as educating their children or engaging on voluntary labor. All the same, the authors’ argument seems to capture a wider scope of the historical picture.

In their argument, they assert that CTs should be considered as the paradigm through which a shift or revolution from north to south will occur (Hanlon, Barrientos & Hulme 2010, p. 44). In this case, they give a summary of the current state of CTs. the book also confirms that they are necessary since they target to enhance social protection and security for the aged people, disabled and children.

Definitely, CTs trigger economic growth and development a factor that provide security for investment. Besides this, they also break the chains in which poverty inter-generate and hence boosts the welfare of the recipients in terms of education, nutrition and healthcare. All the same, the book makes it clear that CTs become beneficial only when they are nationally driven (Hanlon, Barrientos & Hulme 2010, p.61).

The authors point out that donors’ pressure appear to counter their productivity. In this case, the authors appear skeptical on how donors monitor CTs and raise and interesting opinion that poor countries should just be given money without donor conditions.

On the same note, the idea of cash transfer has globally been embraced especially in the third world countries. Abhijit Banerjee and Esther Duflo fictious book entitled Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty presents a compelling argument that anti-poverty program could be effective to eliminate poverty.

Nevertheless, the authors assert that this can only be achieved on the basis that the program must be properly designed to make it work properly (Duflo & Banerjee 2011, p. 12). The authors in the book suitably engage in an investigation on the standard approaches that can best be used to eradicate poverty. In this book, the authors become cynical on the fact that economists are unable to eliminate poverty.

Besides this, they explore through observations and experiments to find out how poor countries have coped to survive in poverty. For a long period the authors have worked closely with poor people in many countries in all the world continents (Duflo & Banerjee 2011, p.52). They are keen to evaluate what the people know, their assumptions and how they can make choices out of poverty.

From the authors’ perspective, there are some efforts that can be made both at private and public level to eradicate poverty. The authors are also suggestive that there are several facets of poverty. In the investigation, they get the idea why poor people should borrow funds for saving, start businesses that do not expand and other surprising facts related to poverty (Duflo & Banerjee 2011, p. 36).

Just like in the book “Just give money to the poor” this book argues that the battle against paucity can only be won only when effective strategies are applied. In line with this, the book analyze that there is need to have a passable understanding of poverty, patience and careful thinking (Duflo & Banerjee 2011, p.102).

Moreover, people might be willing to learn from haphazard control trials in order to derive effective approaches for fighting poverty. Meghnad Desai who is an economist in London school reinforces the idea presented by Hanlon, Barientos and Hulme. Desai suggests that giving the poor a dollar per week would work better than overseas aids.

He points out that the idea has been exercised in Mozambique especially among the flood and drought victims. Pronk (2001, p619) reinforces Desai idea and also highlight that effective methods should be formulated to ensure that such aids benefit the poor.

However, Desai assert that conditions should be imposed on to recipient countries. In his opinion, such countries should be gender sensitive, encourage direct participation by the poor and also to uphold transparency (Desai 1992, p.64).

Just like the authors Abhijit Banerjee and Esther Dufloin in the book Poor Economics, Desai argue that aid can only be effective if it is only allocated depending on individual poverty levels. He also emphasizes that it would be better to give money directly to the poor rather than giving it to the governments (Desai, 1992 p64).

Certainly, this would help the poor to get out of poverty whose behavior must be conditioned to ensure elaborate management of the funds. To sum up the arguments, it is apparent that aids program are essential since they help to raise the living standard of poor people in the third world countries.

Nevertheless, there is need to have elaborate strategies through which funds will be managed to ensure that poor people develop economically and also to lay a firm foundation for their future Mehrotra 2002, p. 532).

Malthusian theory: It is perhaps the works of Robert Malthus that first pointed at the problems that would result from abject poverty.

Sen (2005, p. 153) reports that Malthus saw poverty as a factor of supply and demand largely based on food, prices and the ever growing number of people in the developing and poor nations. He indicated that poverty is indeed a natural phenomenon anchored on the rising population in the globe and highly rigid food supplies.

Furthermore, he noted that the best way to raise a society in poverty is by providing it with assistance in of aid programs. However, though Malthus was partially correct largely from the occurrences of his time, he only factored Charles Darwin’s consideration of natural selection, a reason that lacked the notion of posterity.

Kaprov and Kaprov (2009, p. 234) argue that Malthus failed to appreciate the fact that modern times would see critical evolution of technology which would maximize land productivity, for instance through organic enrichments, irrigations and condensed foods such as carbohydrates and multivitamins.

As global population continue to rise, hunger and poverty remain two interconnected thorny issues that are defying odds on how to effectively address. As such, provision of aid without proper measures to address eradication of poverty may not be helpful (Aar & Claudio 2007, p. 380)

Meghnad Desai view on Poverty as a structural failure

In his view, Meghnad Desai, a British economist considers poverty as a structural failure at institutional and community levels. Desai (1992, p. 64) argues in his publication Population and Poverty in Africa that poverty emerges in the society from a breakdown or malfunctioning of infrastructure at leadership and community level. He cites major disconnection between people and their leaders in countries with highest levels of poverty.

In a country like Swaziland, poverty is defined by sheer failure of the administration with poor majority lacking hope in their administration and therefore only headed for more poverty (Desai 1992, p. 66). As such, providing financial aid where there are no proper institutional structures may not be beneficial in solving poverty issues.

Causes of poverty: Most developing countries which form some of the poorest states have their histories tracing back to colonial era. According to Desai (1992, p. 70) poverty must be viewed as a negation of development and its application. Colonial-masters in developing countries were involved in two major aspects that created a roadmap which dipped many nations into massive poverty.

To begin with, they took control of their hosts’ resources which they used to develop themselves alone. In India, South Africa and Kenya among other nations, the British government was largely interested in gathering raw materials while obstructing locals from getting either effective education or sustainable skills (World Bank 2010, p 61).

By drawing away key resources, these nations have remained behind without resources to develop either infrastructure or human capacity. Providing them with aid might not be helpful since they need a long terms solution that will sustain them

Though Marxists have defended this model of operation, ethical theorists have strongly condemned it indicating that colonial masters were ill motivated.

Besides, Amidon (2010, p. 110) reports that many of the poorest nations directly assumed a “colonial” system of administration that have seen them replace “colonial era administrators” with “local colonialists”. For instance, in India, large trucks of land and wealth is only held by the people in authority while the poor majority lack access to key basic needs.

Poor leadership and corruption

Poverty in the modern society must be viewed as a factor of leadership and its application in the community. Many countries living in absolute poverty appear to share a common factor called poor leadership. When a country assumes poor leadership, Desai (1992, p. 90) reports that it lacks the ability effectively prioritize essential aspects, creates ego-centric models and facilitates massive corruption.

Ans and Rob-van (2006, p. 800) also report that in North Korea, development of citizens has been put as the third factor next to creation of weapons and their acquisition. People are therefore forced to go without basic needs as leaders consider it less important. Leadership in other states such as Uganda and Sudan has focused on resources towards maintaining leadership and power in family lines.

In Uganda, the president’s wife, children and relatives are fixed to key ministerial and administrative positions, a factor that undermines creativity and competitiveness (Desai 1992, p. 70). The focus of this form of leadership becomes aligned to defending these positions as opposed to creating room addressing poverty.

Corruption has become a common occurrence in many developing nations. As a result, development becomes a mirage as key resources are diverted for personal gains.

In Nigeria, the late president Sani Abacha took away millions of dollars from the government for his personal and family use. Countries with high corruption levels such as Afghanistan, Burundi, Central African Republic and Yemen have recorded high levels of poverty (Desai 1992, p. 70).

Current efforts to address poverty

Kaprov and Kaprov (2009, p. 234) argue that addressing poverty is indeed one of the most difficult tasks in the globe. International community has provided aids over the years in form of finances, food and even technical capacity in different aspects of the society.

However, provision of aids has been criticized of failure to invoke major creativity that can be used to totally liberate these communities from poverty. In addition, institutions such as World Bank and United Nations run key programs on education, health and development to reduce poor health and leverage self-dependence.

Even though aid programs may not be helpful, a major effort that cannot go unnoticed is the use of force to facilitate good governance in poor nations. Joh and Kurt (2007, p. 380) report that sanctions in nations such as North Korea, Zimbabwe and Iran have been applied with an intention of reviving leaders’ consideration of poverty and its alleviation.

However, although these efforts have indeed been well intended, they have most often than not met equal and perhaps greater resistance and have yielded defiance from leaders such as Robert Mugabe of Zimbabwe and his counterpart of Iran, President Mahmoud Ahmadinejad (Duflo & Banerjee 2011, 132).

It is from this consideration that a new model of addressing poverty without actually giving money and aid programs is indeed required urgently to avoid plunging the globe into a major disaster.

There is also need to develop a better approach towards addressing poverty that incorporates the local communities.

It is particularly critical that local communities should be supported in fighting poverty as opposed to models of provision of aid programs which fade with time as people slide back to poverty. Finally, it is imperative for leadership to be improved through facilitating democratic ideologies, empowering women and improving literacy levels.

References

Aar, K & Claudio, R 2007, ‘Poverty traps, aid and growth’. Journal of Development Economics, vol. 82 no. 2, pp. 315-347.

Amidon, A 2010, Poverty, ABDO Group, Washington

Ans, K & Rob-van, T 2006, ‘Poverty alleviation as business strategy? Evaluating commitments of frontrunner Multinational Corporations’, World Development, vol. 34 no. 5, pp. 789-801.

Desai, M 1992, ‘Population and Poverty in Africa’, African Development Review, vol 4 no 1, pp 63–78

Duflo, E & Banerjee, A 2011, Poor Economics: a radical rethinking of the way to fight global poverty, Public Affairs, New York.

Hanlon, J, Barrientos, A & Hulme, D 2010,.Just Give Money To The poor: The Development Revolution from the Global South. Kumarian Press, VA.

Harrison, A 2007, Globalization and poverty, University of Chicago Press, Chicago.

Joh, I & Kurt, J 2007 ‘Income poverty and material hardship: How strong is the association?’Journal of Socio-Economics, vol. 36 no. 3, pp. 376-396.

Kaprov, R & Kaprov, S 2009, Master the GED 2010, Peterson’s Publishing Inc. McGraw-Hill International, New Jersey.

Mehrotra, S 2002, “International Development Targets and Official Development assistance”, Development and change, vol33 no 3, pp 529-38.

Pronk, J 2001, “Aid as a catalyst”, Development and change, vol32 no 4, pp611-29.

Sandra, S 2010, Parents, children, young people and the state, Upper Saddle River, Sage, New Jersey.

Sen, A 2005, ‘Human rights and capabilities’, Journal of Human Development vol. 6 no. 2, pp.151–166.

World Bank, 2010, World development report 2010: development and climate change, World Bank, New York.

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