by George Lorimer

Created on: October 16, 2008

Although foreign aid may be an important component of any global poverty-reduction strategy, it is certainly not the solution. Foreign aid unaccompanied by good governance merely lines the pockets of corrupt rulers, while misdirected aid from well-meaning outsiders can damage the environment, promote unrestrained economic growth without providing a social safety net for the poor, create an unhealthy dependence on other governments or international organizations, and even foment conflict.

Numerous international agreements over the past 25 years bind the United Nations' donor countries to commit 0.7 percent of their Gross National Product (GNP) to official development assistance. As of 2005, however, only five of the 22 richest countries in the world had met this target. Therefore, much of the blame for global poverty is cast on the lack of foreign aid.

The blame is off the mark for a few reasons. First, it assumes that an influx of cash solves all problems. Zimbabwe, once considered Africa's breadbasket, is currently one of the poorest countries in the world due to President Robert Mugabe's mismanagement and widespread corruption among the nation's political and military leaders. Sub-Saharan African countries began to receive massive amounts of foreign aid decades ago, but many are as poor or poorer today than they were then. In fact, foreign aid may actually slow development by propping up corrupt and illegitimate governments, who distribute the aid in the form of food, money, or gifts to curry favor with a particular sector of the population, while the marginalized and poor receive nothing.

Second, it lets recipient governments off the hook. Although Zimbabwe was previously mentioned, political corruption is a sad fact of life in numerous countries across the globe. Good governance is necessary to ensure that governments make investments in education, health care, and public services, even though the fruits of these investments may only pay off in the long run. For leaders who want to make a big splash by rewarding their followers with jobs and cash, they may see no benefit in long-term investments. Gender equality, increased political participation, and access to quality health care and education are widely accepted as the key to breaking the cycle of poverty, yet a lack of accountability often means that money is diverted to military spending, industrial development, and murkier ends.

Finally, there is a lack of political will to really tackle the issue of global poverty. Sure, we have the Millennium Development Goals, international declarations, and grand statements from the world's leaders about their commitment to fighting poverty. Ultimately, however, the poor are the most disenfranchised and marginalized group in the world, which means that their voice carries little or no weight in local, national, and international discussions. Although foreign aid is reaching more poor families as it becomes increasingly "privatized" through remittances, charitable giving, and large-scale funding from organizations like the Gates Foundation, money itself will never solve global poverty if it is not accompanied by good governance, transparency, and political will at all levels.

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