To Aid or Not to Aid. That is the Question…..

Well, Osborne has finally laid out his stall. Question Time has come and gone. The debate about the fairness of it all has been raging for a week and no doubt will keep dominating headlines and pub conversations for some time to come. The fact: As a nation we’ve been living beyond our means for way too long and now the chickens have come home to roost. You can argue the toss about the speed and degree of austerity measures versus taxation but ultimately, as a nation, we have to tighten our belts one way or another – all of us.

Now, amongst all of this angst, a side argument has kicked off. The beef is with overseas aid (which has been ring fenced against cuts). Should we, a nation with its own financial problems and growth rate of less than 1% be dishing out cash to “developing” nations with far greater growth rates (in some cases, a la India, as much as 9%). Our tabloids would argue no....I would argue emphatically YES.

India, as an example, is the Dept. For International Development’s (DFID) largest bilateral programme. DFID has provided approximately £1 billion to India in bilateral aid over the period 2002-2007. In the last year for which full figures were available, 2007/8, it was £312 million (Telegraph). Should the British taxpayer give to a nation which can afford its own nuclear weapons? Should we donate to a country that has started its own overseas aid program? Still YES.

We should focus on Wealth NOT Growth. We are still relatively rich although it may not feel that way at the moment. IMF and World Bank figures for 2009 show GDP per capita for the UK of around US$35,000. The comparable number for India is around US$1,000! The UK is still in the top 20 of wealthiest nations.

DFID’s aide program has helped reduce the number of Indian children out of school (and increase the number of girls attending), expand the microfinance industry, provide water and sanitation services to many poor communities and lift millions out of poverty through rural works programs. These rapidly growing nations are still coming to grips with their social welfare obligations. Our work is not done yet.

The issues we should focus on are 1) how to assess poverty levels; 2) how to allocate aid between different recipient countries; 3) how to ensure aid is being routed correctly and efficiently at the local level. The question of whether to give aid or not shouldn’t arise. It’s for the beneficiary countries to refuse our aid, not for us to withdraw our helping hand.

…..and there’s a business/political agenda here too (as always). We would do well to keep these countries on side – to maintain ties with the future growth engine and stop the rhetoric.
Yes there is hardship here in the UK – and it’s likely to get worse before it gets better. It still doesn’t get anywhere near the levels of suffering and depravation that exists in parts of the developing world. It’s our responsibility as members of a civilised world society to help those who are less fortunate than us….and who knows what the future holds. Some day we may need a helping hand too.

Big Society is a global concept… …see you on INTERNATIONAL SEWA DAY – 21 November 2011 : )

Arup Ganguly
Chairman – National Sewa Day