30 November 2024 : Daily Answer Writing
Q1) Foreign aid, although championed as a vital tool for socio-economic development, often runs into stiff opposition from the intended beneficiaries. Elaborate on the various ethical concerns associated with foreign aid. Suggest measures to address the challenges related to foreign aid.
(150 Words/10 Marks)
Answer:
Foreign aid means the international transfer of capital, goods, and services from a country or international organization for the benefit of the recipient country or its population. Foreign aid is also seen as a medium to achieve global justice. Though championed as a vital tool for socio-economic development, foreign aid often runs into stiff opposition from the intended beneficiaries because of various reasons:
- Taxation binds government and people together. If the government is dependent on foreign sources of money, the accountability of the government towards its citizens reduces, sometimes leading to ‘philanthropic colonialism’.
- Influence the policies of the recipient country: India received conditional assistance in the 1990s on the condition of economic reforms and opening of the economy, Assistance on the Condition of Alliance. E.g., China is also being blamed for activities like debt trap.
- Propagation of ideologies: During the Cold War era, the U.S. and U.S.S.R. in an attempt to increase their sphere of influence were criticized for propagating their ideologies.
- Usurpation of democratic process: In recent years, foreign aid also suffered the allegation of influencing the elections. Russia was blamed for influencing the U.S. election of 2016.
- Corruption: Many times, funds do not reach the actual needy population, but leaders engage in corrupt activities. Funds during the Ebola outbreak had not reached the needy ones in Africa.
- Makes a country dependent on donor countries for products and technology. Nuclear power plants and various technologies are highly dependent on some countries only.
To deal with various ethical challenges related to foreign aid, there is a need for certain measures:
- Accurate assessment of needs to be done and proper channels are required for the transfer of funds.
- Transparency and accountability need to be ensured so that assistance is not misused. Third-party audits can also be done.
- Involvement of local government, civil society, and International NGOs in humanitarian assistance.
- Foreign aid should not come with strings attached that impinge on a nation’s integrity and sovereignty. E.g., IMF tough conditionalities for bail-out packages.
- Measures should be kept in place so that the funding is not channeled towards anti-national purposes. E.g., FCRA, 2010 prevents illegitimate funding.
Foreign aid is an important mode to show solidarity among various Nations and to promote a feeling of oneness. Various ethical challenges need to be addressed to fulfill its actual objective.
