To What Extent Is Aid Effective? Essays

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To what extent is aid effective?

The world is split in two, on one side the prosperous global north whose early industrialisation and development has led to the population having long lasting and comfortable lives, while on the other side, the global south falters collapsing in a pit of poverty and despair. The answer would seem simple, for the rich and well-off to give generously to the poor, so that the whole world can share in the abundant resources that this planet produces. However, sixty years on since the Marshall plan and the birth of the modern aid movement, there has been no change to the status quo, the global south still suffers from the biblical famines and deaths and the north still prospers from welfare and advanced
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This means developing countries are limited to only exporting raw materials into foreign countries as they cannot compete due to tariffs. For example, the 2002 steel tariff by the US charged a 30% tariff on steel imports. Therefore, the transfer of aid from the rich Western world, to the poorer developing countries enables these countries to try and balance up the markets by subsidising their industries and investing in capital schemes.

However, the effectiveness of aid in countering these problems is seen to be small as the effect of Western economic dominance on restricting developing countries trade is seen to be too great. Libertarian Johan Norberg wrote, ‘According to the United Nations Conference on Trade and Development, EU protectionism deprives developing countries of nearly $700 billion in export income a year. That's almost 14 times more than poor countries receive in foreign aid.’ Norberg is showing that even with aid, developing countries are still in a state of perpetual famine and lack of development as Western protectionism is causing them to lose billions of pounds in lost revenue each year, something which can only be improved through liberating the markets instead of giving more aid.

Despite popular belief not all aid comes in the form of short term solutions to complicated problems, a large amount of aid is used for long-term developmental
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