Essay on To What Extent Is Aid Effective?

2113 Words May 26th, 2012 9 Pages
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
…show more content…
For example, the Pachama Coffee Cooperative in Ethiopia a country which is considered one of the poorest in the world, has recently set up an online tracking system which links up coffee producers and the coffee market, so that the producers know what price to set their coffee at. The importance of long term developmental projects is great, as they allow developing countries to fully reach their potential, however they are often ignored by governments who instead use their tax revenue to appease short term problems rather than solve problem in the long run, therefore there is onus on NGO’s to set up long term projects.

However, realists would argue that NGO’s who attempt to set up developmental problems suffer from asymmetry of information and therefore these projects are destined to fail due to lack of knowledge about the local culture or about the skills of the people. For example, In Kenya an NGO set up the Lake Turkana fish processing plant, so that the people could more efficiently fish, however they failed to notice that the local people were nomads without any of the necessary skills to utilise the plant.

Though, it should be noted that in the majority of cases long term projects do make a large difference to the quality of life in numerous communities and

Related Documents