Home
/
RELIGION & LIBERTY ONLINE
/
European foreign aid caught between dishonesty and incompetence
European foreign aid caught between dishonesty and incompetence
Dec 16, 2025 5:52 AM

International aid groups have criticized the EU and many of its member states for falling behind their promises to step up foreign aid to 0.5 per cent of GDP by 2010 and 0.7 per cent by 2015.

On the one hand, these groups are right to expose the accounting tricks governments use in order to promote themselves as saviors of Africa. On the other hand, the aid groups should consider very carefully whether their focus on state aid is really the key towards future development in poor countries.

The problem that they indicate is that the EU and its members classify some expenses as aid although these are only indirectly related to development. This includes debt restructuring and payments to cover housing of refugee claimants in Europe.

The aid groups say that in 2007, EU nations spent around €8 billion in such non-aid items. They conclude that “on current trends, the EU will have given €75 billion less between 2005 and 2010 than was promised.”

This kind of creative accounting should not be very surprising since politicians like to claim that they are helping the poorest countries in the world but also know that it is more difficult to tell taxpayers that they have to foot the bill. In such circumstances the most convenient thing to do is to artificially inflate the aid budget with non-aid expenses.

The question remains: Is state-to-state aid the most effective way to promote development? Prof. Philip Booth explained at a recent conference organized by the Acton Institute in Rome that government aid has failed on countless occasions and has even entrenched underdevelopment on some occasions.

Booth made clear that “at the empirical level, there appears to be a negative relationship between aid and growth. This does not imply cause and effect of course, but it should make us pause for thought. After the late 1970s, aid to Africa grew rapidly yet GDP growth collapsed and was close to zero or negative for over a decade from 1984. GDP growth in Africa did not start to pick up again until aid fell in the early-to-mid 1990s. In East Asia, South Asia and the Pacific, one also finds that, as aid reduced, national e increased rapidly.”

It is important to note that Booth criticized government-to-government aid and not charity in general. Whereas transfers between governments have often resulted in rent-seeking and the strengthening of dubious regimes, private initiatives do not suffer from the same problems: “None of the points I have made relate to the exercise of charity. It is important to point out that we should not wait for a just ordering of the world or good governance in recipient countries before supporting charitable relief.”

Aid groups such as Oxfam and Christian Aid would do well to turn their focus away from pressuring governments to spend more on aid and instead strengthen their efforts to encourage private initiatives.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
2006 in Review, 1st Quarter
This series will take a representative post from each month of the past year, to review the big stories of the past twelve months. First things first, the first quarter of 2006: January “Who is Pope Benedict XVI?,” Kishore Jayabalan Despite his many writings, scholarly expertise and long service to the Church as Prefect of Congregation of the Doctrine of the Faith as Cardinal Joseph Ratzinger, there’s still much of an unknown quality surrounding Pope Benedict XVI…. February “The Mohammed...
2006 in Review, 2nd Quarter
Our series on the year in review continues with the second quarter: April “Surprise! Evangelical Politics Isn’t Univocal,” Jordan J. Ballor So from issues like immigration to global warming, the press is eager to find the fault lines of evangelical politics. And moving beyond the typical Jim Wallis-Jerry Falwell dichotomy, there are real and honest disagreements among evangelicals on any number of political issues…. May “How Do You Spell Relief?” Jordan J. Ballor If Congress really wants to address the...
A Reflection on the Incarnation
Rev. Robert A. Sirico, president of the Acton Institute, passes along a Christmas message over at Phi Beta Cons on National Review Online. Reflecting on the Incarnation, Sirico says, “This belief teaches us to take seriously human history, its institutions, economies and social relationships, for all of this, and more, is the stuff from which human destiny is discovered and directed.” At the Christmas staff meeting Rev. Sirico passed on similar thoughts to us, and concludes with this, which I...
2006 in Review, 3rd Quarter
Our series on the year in review continues with the third fourth of 2006: July “Isn’t the Cold War Over?” David Michael Phelps I’ve got an idea for a new . Titled, Hugo and Vladi, it details the zany adventures of two world leaders, one of whom (played by David Hyde Pierce) struggles to upkeep his image of a friendly, modern European diplomat while his goofball brother-in-law (played by George Lopez) keeps screwing it up for him by spouting off...
Never a Countdown on Effective Compassion
The “10 years after welfare reform” articles of this past summer are old news, of course. Not surprisingly, indications were that, like any public policy, reform hadn’t been the all-time poverty solution, but that policies had, in fact, helped a significant number of people to move themselves to self-sufficiency. A recent Wall Street Journal series highlighted the broad range of issues related to moving out of poverty. panion piece to the December 28 entry, “Economists Are Putting Theories to Scientific...
Recidivism and Reform: Competing Views of the State’s Role in Prison
In this week’s mentary, I reflect on the past year’s developments for InnerChange Freedom Initiative, a ministry of Prison Fellowship. In June a federal judge in Iowa ruled against IFI’s work at Iowa’s Newton facility. In his ruling (PDF here), the judge wrote that the responsibility bating recidivism is “traditionally and exclusively reserved to the state.” This means that since reducing recidivism is a “state function,” anyone working bat recidivism is by definition a “state actor.” Panopticon blueprint by Jeremy...
Who Really Cares for the Poor?
Syracuse University professor Arthur Brooks challenges perceived mainstream social orthodoxy in his new book, Who Really Cares: America’s Charity Divide – Who Gives, Who Doesn’t and Why It Matters. For generations it has been assumed that political and social liberals are generous towards the poor while conservatives are proverbial tightwads. At least since the days of Charles Dickens’ Scrooge this has been the popular view. Liberals continually remind us that they are the ones who really care about welfare since...
Remembering Gerald Ford
The Acton Institute’s offices are right across the Grand River from the Gerald R. Ford Presidential Museum (and what will be Ford’s final resting place). Having passed these sites every day for several years on my walk to work, news of the ex-president’s death was especially poignant. National Review Online offers an interesting symposium on Ford’s presidency and legacy. From the other side of the ideological divide, Newsweek provides several retrospective pieces. A striking thing about Ford that I hadn’t...
2006 in Review, 4th Quarter
Our 2006 year in review series concludes with the fourth quarter: October “Do You See More than Just a ‘Carbon Footprint’?” Jordan J. Ballor It’s a fair question to ask, I think, of those who are a part of the radical environmentalist/population control political lobby. It’s also a note of caution to fellow Christians who want to build bridges with those folks…there is plex of interrelated policies that are logically consistent once you assume the tenets of secular environmentalism…. November...
Single-payer Schemes=Supply Shortages
Go to this page to watch a short video highlighting the story of one man’s fight against Canada’s health system. The film is focused on the defects of socialized medicine and so, naturally, does not deal with the serious problems existing in other systems (such as the United States). But it is an effective display of a problem that every attempt to manipulate prices encounters: how to make supply meet demand. ...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved