Transcript Aid

AGTI Annual Conference
Galway
October 2011
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After 60 years of aid, there are almost one
billion people hungry in today’s world…...
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"Government-to-government transfers are
an excellent method of transferring money
from poor people in rich countries to rich
people in poor countries."
Peter Bauer - British academic
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“It seems as if America needs hungry
Africans to eat their surplus.”
Quote by an Ethiopian farmer
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More than $100 billion is transferred to the
South every year in official aid and through
private charities.
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However, remittances account for more
than twice as much as all official aid.
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Sub-Saharan Africa – the world’s poorest
region – receives the largest amount of aid
of any region – approx $52 per year per
capita.
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Aid to South-East Asia and the Pacific is
about $4 per capita per year.
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Some African countries are very
dependent on aid. For instance, aid to
Liberia and Burundi equals about half
of their GDP.
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After several decades of receiving aid,
Africans are poorer than ever!
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Aid is a partnership between donor
countries and recipient countries.
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Aid is an industry today.
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Aid has been in operation since the
middle of the 20th century.
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Official aid
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Bilateral aid
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Multi-lateral aid
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Emergency aid
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Voluntary aid - NGOs
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Short Term vs. Long Term aid
(A) The USA insisted that Africa’s
governments purchase anti-AIDS drugs from
the USA instead of buying cheaper generic
products from South Africa, India or Brazil.
(B) In Vietnam, a €2.3 million tied aid package
from Italy is funding the building of the water
system in an urban setting. An Italian company
is setting up the Vietnamese flood monitoring
system at a cost of €2.5 million.
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Only six countries – Ireland,
Luxembourg, the Netherlands, Sweden
Norway and the UK – provide more or
less 100% untied aid.
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Tied aid was made illegal in the UK
with the International Development
Act of 2001.
Others, 2%
Japan, 6%
European
Union, 25%
United
States, 59%
Canada,
5%
Australia,
3%
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Aid makes people lazy
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It makes recipient governments lazy –
they do not pursue tax revenues
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Aid fuels corruption
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It discourages enterprise
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Public services that governments
should provide are provided by aid
agencies
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Aid dependence becomes an addiction
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Outsiders call the shots.
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Cold turkey
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Inward direct investment
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A market economy
Aid must be targeted at real needs.
 Aid Recipients must be accountable to
donors.
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IRELAND’S
PARTNER COUNTRIES
OTHER
PARTNER
COUNTRIES:
 Vietnam
 East Timor
OTHER
PRIORITY
COUNTRIES:
Sierra Leone
Liberia
South Africa
Palestine
ODA - %age of GNP
0.70
0.60
Percentage
0.50
0.40
0.30
0.20
0.10
0.00
2000 2001 2002 2003 2004 2005 2006 2007 2009 2009 2010
YEAR
Millions of Euros
Ireland - ODA in €m
1000
900
800
700
600
500
400
300
200
100
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
YEAR
1.20
1.00
0.80
0.60
0.40
0.20
0.00
Africa in 1960: A bright future
 China in 1960: A basket case
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Africa today: A continent in crisis
 China today: ……….Double digit
growth
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Tied Aid
Dependence
Food Aid
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