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Students4Kids EN » Development Cooperation Critically Evaluated

Development Cooperation Critically Evaluated

Development Cooperation Critically Evaluated

As curse of good intention, the Neue Zürcher Zeitung newspaper describes experiences from more than fifty years of international development policy. The impulse for this provides an examination of the effect of nearly 5,000 billion dollars of official development assistance since 1960. Empirical studies show that there is no positive relationship between the capital flows and the economic growth in developing and emerging countries. The economic upturn in Asia, preferably in India and China is attributed to factors such as the liberalization of the interior and the integration of these countries into the world market, but not primarily to development aid. However, the situation in the majority of African countries scarcely changed, although they receive the bulk of development funds and its government expenses were financed to up to 50% from foreign donations. Incentives for governments of these recipient countries to independently comply with state obligations for health and education and thereby involve more tax revenues of citizens are even more reduced the more the dependency on aid payments is growing. In addition, the structures of development assistance reproduce like a self-run and solidify without the long term impulse in the sense of self-help.

Development cooperation is yet often not only fruitless, but also harmful, the NZZ stated, citing the Nobel Laureate in Economics of 2015, Angus Deaton. A long-term abatement of poverty and thus also one of the substaincial causes of emigration in developing countries is possible if the rule of law and economic freedom in the developing countries are institutionally guaranteed.

Read and see more (unfortunately following source is only avalaible in German):
T. Fuster.  Der Fluch der guten Absicht . Neue Zürcher Zeitung vom 23. Januar 2016. Seite 17. Link:  http://www.nzz.ch/meinung/kommentare/der-fluch-der-guten-absicht-ld.4384

 

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