Thursday, March 02, 2006

How Foreign Aid Works

The "left" is tsk-tsking on the BushCo's cuts of aid to Latin America, accusing the administration of "gutting" aid to our southern and Caribbean neighbors living in poverty. Does anyone ever ask why decades of aid has yet to help our neighbors? Ever wonder why the "left" and "right" love to throw money at a problem? Flim and Flam political parties.

Specifically, Howard Dean has " … attacked President Bush's deplorable record in Latin America (the president's budget calls for almost a 30 percent cut in development aid to Latin America and the Caribbean). I don't think it's an accident that governments in Latin America are turning to the left,'' Dean said. "This president had an opportunity to sell Latin America on capitalism and democracy and he failed."

Oh shit Dummy Dean, every president since Washington has had an opportunity and still the peasants fight to the death against capitalism. Here's why our own ruling elite love "foreign aid" programs:

Example A: US gives Honduras $20 million in aid earmarked for infrastructure - such as a new 5 mile stretch of highway from Backward Village A to Backward Village B, population 200. Honduras officials will assign the construction contract to the nearest relatives and/or friends while also hiring a gringo firm, either in Honduras or Miami, to co-engineer the project from afar, and then buy road graders, cement mixers, bulldozers, cranes, excavators, trucks, etc. from an Anglo company in the US. Eventually, after spending $19,950,000 on supplies, paperwork, equipment, cronies, consultants, advisors, administrators, the remainder goes to employ a few hundred peasants in Village A and B for approximately 9 months at a few dollars a day. Foremen will make a bit more as they have to supervise the project and report back to the oligarch.

Example B: US gives El Salvador a package of $50,000,000 earmarked for constructing housing for the poor. Contracting goes to family/friends, equipment purchased from Miami; local and US architectural firms to co-engineer; consultants, advisors, administrators, and after $49,950,000 is spread to coffers in San Salvador and other US corporate headquarters, the remainder will build one hundred very cheap and shoddy 4 room cracker-box houses which disintegrate around the occupants within three years – necessitating of course more US aid for housing.

Example C: US gives Columbia $1 billion in aid to fight the war on drugs. Many many millions are then returned to US corporations for the purchase of weapons, ammunitions, helicopters, planes, campsite equipment, supplies, US personnel to train Columbian personnel, to pay for anti-drug education programs, consultants, advisors, administrators, more weapons, helicopters, planes, eradication chemicals, etc.

I may be exaggerating the dollar specs a bit but most of the US government's so called "foreign aid" comes home to the usual suspects/pockets. Much of it goes to the pockets of the recipient nation's ruling elite. With decades of giving aid, in trillions of dollars, it's how the US keeps the majority of Latin Americans living in raw sewage and picking through garbage. "Foreign aid" is one of our "Feed the Elite" programs, but without tear-jerking commercials and an 800 number for contributions. The "developing world" doesn't stand a chance of developing as long as Western elites continue to give "aid."

If BushCo wants to cut aid to our southern neighbors – amen. But the US elite will then filter tax monies back to themselves through aid to other areas that need "development," the Middle East, to the war on terror, Homeland Security, etc. Tell Mr. Dean "deplorable" is that we haven't stopped the duplicity of our own politicians.

4 comments:

Anonymous said...

Sounds about right. Similar projects are undertaken in Alaska, year after year. Anchorage contractors do well as do lawyers and accountants. If a village ends up with some equipment as in your Example A, there's no money for fuel or maintenance and repair. As in Example B, poorly insulated Western-style housing that sits up on pilings in the wind is built where traditional housing was warm enough for babies to crawl around on the floor, etc.

As to Example C, I would think that Colombia has done well with the non-governmental proceeds from international trade in cocaine. And I'd guess the drug lords like mafia dons would spread some of the largesse around to impress if not to assist the locals.

Re Honduras, I came across what looks like a
working example
of microenterprise that may actually be legit.

Anonymous said...

You forgot that "give" increasingly means "lend". Loans are classifed as "aid", and the indebted nation typically pays back the "aid" "given" many times over in "interest".

Kate-A said...

dus,
Honduras was actually where I was 20 years ago when I saw the "aid" at work and came to my conclusions. Adelante is similar to a program I viewed recently but it was being done in rural India. These private organizations are a post unto themselves. There's also an awful lot of federal grants earmarked for foreign "grants" for anyone willing to apply and implement a program.

I've blogged before on the abuse of "grant" programs in the US. I wish Americans could see how much of their tax monies passed out in grants do little more than make their neighbors lifestyle posh. And can all be done legally, more or less.

anon,
Correct about "give" and lending. I didn't mention the IMF either and the "fund" they administer world wide. Loan sharking and the numbers racket - two crimes now legal under cover of "lending" and "lottery."

Anonymous said...

Kate said: The "developing world" doesn't stand a chance of developing as long as Western elites continue to give "aid."
--

Yeah, ain't it peculiar, how much money is spent, and you never see any real, measurable improvements. Yet the incessant begging for dollars continues generation after generation. No matter how you slice 'em, they all seem to be scams. Legalized scams. Likewise for: medical research, walkathons, runs for the cures, hospital and various disease lotteries [we actually have those here in Canada, even with our 'socialized health-care system'. What a farce!Seems that no matter how much money is thrown into the pots, no cures are ever found, only more toxic meds that enable some to live longer with their diseases!]adopt a poor kid, feed a starving child for the cost of a cup o' coffee a day, concerts for fundraising (Live 8 comes to mind, what a farce that was, have read much on it and not surprised. Disappointed but not surprised.)and on and on...

Why it's almost enuff to make one jaded. It might if I didn't have other ideas, and faith in other things. I don't support any of those scams, recognizing what they truly are. As for what the gov'ts do with our tax dollars, well shit that is way beyond my say-so.

But, I believe in giving and helping others, all the time. Give personally and locally at every opportunity. Almost forgot, we did give up a vacation last September to give our money to hurricane housing for Katrina victims. Will never know if the money ever got to people who needed it. Again, no power of tracking it. I do wonder, but I don't worry about it though, it was given in good faith.

Corruption abounds. IMF et al? Don't get me started lol. Organized crime "families" run the planet. That's a fact.

Don't want to end on a sour note so... Think globally, act locally? Works for me.

Blessings all, amj

Content © 2005-2020 by Kate/A.