What is so Foreign About Foreign Aid?

18 Nov

A khaki-clad Western aid worker is helping unload a truck in a sun-baked dusty barren place surrounded by black (sometimes brown) faces. It could be a scene from any of the countless news clips from the equally countless number of crises that continue to rain down upon obscure parts of the world. The clips are ubiquitous and yet hardly anybody notices the egregious role of the Western aid worker, who ostensibly has flown around from whichever place s/he calls home at a pretty penny to do the readily outsourced job of (un)loading supplies from the truck.

Planners versus “the Searchers”
William Easterly, NYU economics professor and a former research economist at the World Bank, in his book “The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good”, argues that the aid efforts led by the West have failed primarily because their utopian aid plans are based on the assumption that they know what is best for everyone. He argues that the West needs to get away from the model of “Planners”, imposing top-down solutions, and rather adopt the “Searchers” model, that tries to adapt innovations that come from native cultures. That may well be. But it is not clear if that is the primary sin.

Home Aid
Easterly misses the fact that many Western aid programs typically mandate that the recipient country buy provisions (defense armaments to cans of food) from the donor nation. Many times in fact aid is provided in form of products made by donor nation industries. So you can have “2.4 million Kellogg’s pop-tarts” being airdropped in Afghanistan (see Wikipedia which cites the book from which the figure is drawn), while much cheaper staples like rice and lentil are largely ignored.

This better explains why “the West spent $2.3 trillion in foreign aid over the last five decades and still had not managed to get 12 cent medicines to children to prevent half of all malaria deaths. The West spent $2.3 trillion and still had not managed to get $4 bed nets to poor families. The West spent $2.3 trillion and still had not managed to get $3 to each new mother to prevent five million child deaths” (White Man’s Burden).

Careerism and Bureaucratization
The rise of careerism and increased bureaucratization in the NGO industry are partly responsible for the failure of development assistance to the third world, according to Dr. Thomas Dichter, an anthropologist at The University of Chicago and author of “Despite Good Intentions: Why Development Assistance to the Third World Has Failed.”

Increased bureaucratization has led to a demand for “trained professionals” (air quotes because it isn’t clear what the training is in) to fill the ranks. Paying heed to the rising demand, “entire college programs have sprung up, such as Wayne State University’s Nonprofit Sector Studies Program (NPSS). The NPSS mission states, “The nation’s fastest-growing sector needs administrators, policymakers, program managers, and advocates who will guide them into the future” writes Michael Donnely for Peace Corps Online. One may expect that the rising compensation packages at non-profit organizations would attract better talent, instead, it has largely meant that the organizations are paying more for the same work or/and are led by ever more ambitious dimwits who want to push for ever larger projects at the expense of some little ones that do work.

The NGO-Ivy league Nexus
In the past two decades, an internship at an NGO has become a right of passage for countless Ivy League undergraduates, primarily in social sciences and humanities, interested in pursuing further graduate school education. Experience with a foreign NGO has become the best way for the ambitious ivy educated brats to pad up resumes and impress law and medical school admissions committees of their sociotropic ideals. There is little that these self-absorbed individuals bring to third world countries in terms of talent or ability to help but every year thousands of such students are farmed out to NGOs across the world and there they leech money and time from NGOs to get training to hang their mosquito nets and make their calls to mom and dad and make safari trips and learn the language.

NGO workers — Why do they get paid more?
“Government employees have complained their co-workers employed by some non-governmental organizations are getting high salaries that cause a socio-economic imbalance in the society. The high-paid workers of NGOs have clouded the status and standard of life of the low-paid government employees. Prestigious social status and high income of the NGOs workers have created envies in the poverty-stricken government employees.” South Asian Media Net “Venting her spleen, Torpikai, a government employee, told Pajhwok Afghan News on Sunday despite 18 years experience she was paid 2,000 afghanis (40$) but her younger and inexperienced neighbor with same qualification was getting double than her salary.” And wages are only part of the issue, real bills pour in from conferences at five-star hotels, and extravagant perks enjoyed by foreign aid employees like the use of SUVs, PDAs, and stays in five-star hotels. The sad fact is that majority of the aid money is actually funneled back to pay for the perks and salary of the Western aid workers.

Lack of accountability
The logic that underpins all NGO wastefulness is lack of accountability, both in tallying funds and actual accomplishments. Washington Post a couple of years reported that employees in non-profits often times take loans from the NGO funds at no or ridiculously low-interest rates. Other ethical violations are also rampant within NGOs. For example, Oxfam, an NGO and a 25% stakeholder of Cafedirect, campaigned vigorously against CafeDirect’s competitors, accusing them of exploiting coffee growers by paying them a small fraction of their earnings.

Food for Thought
Here’s an excerpt from a New York Times article that passingly compares aid strategies between the West and China.

“The industrial nations conducted a sort of moral crusade, with advocacy organizations exposing Africa’s dreadful sores and crying shame on the leaders of wealthy nations and those leaders then heroically pledging, at the G8 meeting in July, to raise their development assistance by billions and to open their markets to Africa. Once everyone had gone home, the aid increase turned out to be largely ephemeral and trade reform merely wishful. China, by contrast, offers a pragmatic relationship between equals: the “strategic partnership” promised in China’s African policy is premised on “mutual benefit, reciprocity, and common prosperity.” And the benefits are very tangible.”