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    A study from the Globalisation Institute this weekend finds that for every 1% increase in aid received by a developing country, there is a 3.65% drop in real GDP growth per person.

    http://www.globalizationinstitute.org/blog/cat_aid.php

    Should we stop all aid?
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    Personally, I don't believe that aid works. However, it would be wrong to stop giving aid without offering some alternative help to Africa. In my opinion free trade should be that alternative. If we remove restrictions on African trade and cancel the subsidies spent on our own products, I believe that Africa will be able to work itself out of poverty. With it's lower wage levels and relatively little regulations, I see no reason why African products would not be able to successfully compete with our own products.

    As well as allowing Africa free trade I believe we should also make an effort to change, and possibly remove, the corrupt governments in Africa who monopolise the wealth of Africa. Good governace is essential for the long term progress of Africa. We should use the potential of free trade to encourage African governments to unite against the corrupt governments who give their continent a bad name. I think we should also offer military support if African nations decide to act against countries such as Zimbabwe.
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    (Original post by John82)
    Personally, I don't believe that aid works. However, it would be wrong to stop giving aid without offering some alternative help to Africa. In my opinion free trade should be that alternative. If we remove restrictions on African trade and cancel the subsidies spent on our own products, I believe that Africa will be able to work itself out of poverty. With it's lower wage levels and relatively little regulations, I see no reason why African products would not be able to successfully compete with our own products.

    As well as allowing Africa free trade I believe we should also make an effort to change, and possibly remove, the corrupt governments in Africa who monopolise the wealth of Africa. Good governace is essential for the long term progress of Africa. We should use the potential of free trade to encourage African governments to unite against the corrupt governments who give their continent a bad name. I think we should also offer military support if African nations decide to act against countries such as Zimbabwe.

    I agree. I wish more would think like that, unfortunately many people lack the abilty to understand more aid does not neccessarily equal more wealth for the masses.
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    Did you notice who funds this particular thinktank?

    I doubt you would accept anything from greenpeace on global warming so why should we accept this as anything other than propaganda?
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    Throwing money at Africa and hoping poverty will end obviously isn't going to fix anything - we've established that over the last 20-odd years of aid to the third world. John82 makes good points about establishing free trade and government reforms in Africa.

    Unfortunately, our leaders who are "acting in our best interests" seem to have their own agenda.. Here's hoping for further progress..
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    Surely it all depends on how aid is given- if its given to the government and distributed top-down it tends to distort the economy and leads to inefficiency and corruption, but if its' given at community level and used to promote small buissness it can make a real difference.
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    We shouldn't stop giving aid, but there must always be stringent measures to prevent such aid being syphoned off by corrupt officials (sounds like the bbc i know).

    Basically, standard economics a-level answer for 3 marks is, yes its good, but countries can become dependant which is bad, so make sure they use it well, stamp out corruption and make sure the people benefit.
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    Aid works. As the poeple whos lives it saved. But of course it's not the solution. It's a way of treating the symptoms of poverty, not curing the causes of poverty. Until those causes are cured we must keep giving.
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    (Original post by John82)
    If we remove restrictions on African trade and cancel the subsidies spent on our own products, I believe that Africa will be able to work itself out of poverty. With it's lower wage levels and relatively little regulations, I see no reason why African products would not be able to successfully compete with our own products.

    As well as allowing Africa free trade I believe we should also make an effort to change, and possibly remove, the corrupt governments in Africa who monopolise the wealth of Africa. Good governace is essential for the long term progress of Africa. We should use the potential of free trade to encourage African governments to unite against the corrupt governments who give their continent a bad name. I think we should also offer military support if African nations decide to act against countries such as Zimbabwe.
    I agree. Aid can be very helpful in these goals and in preventing death and poverty across the world. It needs to be given to the right people and spent in the right way however.
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    10/10. next question please
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    Its a bit broad, but aid in general is not bad, especially private aid through charities. Too much aid is wrong as it foists a culture of dependancy on the recipient nation as well as causing a drain of resources on the donor nation. In the end this leads no-where. However, government aid that is limited and tied to opening of markets, ending of corruption in government and more democracy in its political system can and will achieve something, and push the country along the road to prosperity. Aid through charities is good, I believe, for getting individual communites on their feet, building houses, setting up businesses etc. Government aid should be directed towards bigger objectives ie democracy. Along with this should come free trade, which in the end will benefit us all.
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    (Original post by material breach)
    Did you notice who funds this particular thinktank?

    I doubt you would accept anything from greenpeace on global warming so why should we accept this as anything other than propaganda?

    Because it is well argued.
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    (Original post by Northumbrian)
    Aid works. As the poeple whos lives it saved. But of course it's not the solution. It's a way of treating the symptoms of poverty, not curing the causes of poverty. Until those causes are cured we must keep giving.
    It does not work since the masses don't get it, the corrupt leaders get this thus allowing them to strengthen their power and continue to oppress their people. Thus the giving of aid makes the problems worse, thus we must stop giving and propping up regimes. We should allow these evil regimes to fall, encourage the next government to have stable property rights, abolish CAP and than free trade will take them out of poverty.
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    It does not work since the masses don't get it, the corrupt leaders get this thus allowing them to strengthen their power and continue to oppress their people.
    LOTS of the money has helped people. Do you have any figures for the ratio of money spent well to money not spent well?

    You also assume that 'aid' means give money to governments. We can give aid through NGOs.
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    (Original post by Northumbrian)
    LOTS of the money has helped people. Do you have any figures for the ratio of money spent well to money not spent well?

    You also assume that 'aid' means give money to governments. We can give aid through NGOs.
    I'm not saying that donatons to fund small local developments does not help. But i am saying that governments who give aid to toher coutries do damage overall. Not just because it props up evil regimes, does not go to the people, reduces economic growth but also because it changes the whole emphaisis of the development debate - it should be on free trade not hand outs.
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    NGO's r one of the main cause of the primary poverty in thirld world countries.. These NGOs take a big part of the money for themselves and give the poor very less.. anyways by giving aid we save millions of lives.. keep giving!
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    All aid causes dependency and thereby weakens the recipient countries economically. The only time it should be given is if large amounts of people are on the verge of dying, since when push comes to shove, life is more important than money.

    For people who think that aid actually helps communities on average, here are a few examples from real life:

    A rich country donates 100 tons of food to a country that grows 100 tons of food each year (doubling the supply of food). Since the supply just doubled, the price of food will fall drastically, which means many farmers in the recipient country will go out of business. Now they need food, since they can't grow any, and the amount of food given has to be 200 tons. Instead of helping the country, you made it even more dependent on food handouts.

    A country with a GDP of $100 gets $50 of aid in one year. Since production didn't increase, the price level of all goods and services will rise by ~50%. Income hasn't increased, which means the standard of living (real income) of all people living in this country fell by a third. Anyone who doesn't receive aid is now worse off. Plus if this aid is ever removed, it will not immediately get rid of the inflation. Now the donor has to provide $50 each year just to keep the situation from worsening.

    And that doesn't include the obvious cases of corruption and theft.
 
 
 

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