Australia’s Aid Links Advantages and Disadvantages +

Social Justice and Equity

Aid or official development assistance (ODA)helps countries better recover from naturaldisasters and events. E.g. Floods in Pakistan

orthe Haiti Earthquake.

Advantages of Aid

The Floods in Pakistan have affected 20 million people, it is estimated that 1,400

have lost their lives and 650,000 people are without basic shelter. While aid money is flowing into Pakistan there are thousands

hungry and afflicted by disease.

How has Caritas responded to this crisis?

Humanitarian reasons – to improve the living standards for those in countries with low levels of human development – e.g. low literacy levels, high rates of infectious

diseases and low life expectancy.

Advantages of Aid

Aid money helps provide basic infrastructure in society such as clean water supplies, sanitation , telecommunications and

transportation links.

Aid money can be spent on education that helps break the ‘vicious cycle of

poverty’.

AusAID development assistance has helped eradicate or reduce the incidence of diseases. For example, the eradication of Polio from the Pacific Islands. Also, Australian aid money is used in health programs to combat the global fight against HIV/AIDS.

Advantages of Aid

Approximately 200,000 people in PNG are living with HIV/AIDS

Teenagers in Africa afflicted by Polio

Australia’s bilateral and multilateral aid contributions help build and strengthen positive relations between us and other nations. It also helps develop trade links with recipient countries–particularly those in the Asia Pacific region.

Advantages of Aid

Trade in the Asia-Pacific region accounted for 69.8% of Australia’s trade in 2007-08.

Aid from Australia is used to promote good governance and reduce political instability in our nearest neighbours. This reduces the threat of civil unrest and the growth of

terrorist networks in the region. E.g. work in

Indonesia.

Advantages of Aid Links

Since Bali Bombings Australia has devoted funds to help combat terrorism

in the region.

Some governments receiving aid may be corrupt or authoritarian (e.g. Burma) and use the money for personal benefit rather thanhelping those in need. This is why Pakistan iscalling in international auditors to manage

theflow of aid money for the flood victims.

Disadvantages of Aid

Human Rights abuses in Burma(forced labour camps)

Aid may make some countries reliant on funds for development and this may hinder

the growth of domestic industries. It may also hinder the emergence of entrepreneurial

talent that would foster economic growth.

Disadvantages of Aid Links

What is the cartoon saying the delivery of foreign aid?

How would you feel?

Australia’s aid money could be spent elsewhere

within the domestic economy. This was an argument proposed recently by Senator Barnaby Joyce. However, Australia’s current

aid contribution is around 0.4% of GDP. This isbelow the 0.7% committed by Australia in its international treaty obligations.

Disadvantages of Aid Links

Aid is often wasted due to conditions placed on the recipient country. E.g. they must use

overpriced goods and services from the donor countries. Also, most aid does not

actually go to the poorest who would need it – its is often taken up by administrative and marketing costs. This is called phantom aid.

Disadvantages of Aid Links

Aid money amounts are small in comparison to the costs from an unfair global trading system. Poor countries are often denied market access, while rich nations use aid as a lever to open poor country markets to their business. Eg TNCs

Disadvantages of Aid Links

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What is this cartoon saying about foreign aid?

Articles about disadvantages Barnaby Joyce

Rwanda president

Tim Costello, CEO of World Vision, appeared on the 7pm Project to talk about the Pakistan floods and the response from the rest of the world.

7pm Project

Article

Response to the Pakistan floods