Foreign Aid

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The Issue

Probe International works to hold both Canadian and international aid agencies, export credit agencies to account for the environmental, social, and economic harm they cause in developing countries. While Probe believes that public support for foreign aid begins with honorable intentions, its inevitable effect is destructive. More than five decades of state to state aid has given Third World governments financial freedom from their own citizens, thereby undermining political accountability and institutions in those countries.

By bankrolling unaccountable governments against their own people, agencies such as the Canadian International Development Agency and the World Bank have caused environmental havoc, financial ruin and social harm throughout the Third World. Despite "pro-poor" and "pro-environment" rhetoric, such agencies have financed hydro projects, hazardous mining operations, as well as road-building and forestry schemes that have led to widespread environmental damage and impoverished communities. Through it all, these institutions have shown a blatant disregard for the democratic rights of the citizenry and property rights of the people most affected by the projects they finance.

In the pages that follow, we lay out the evidence of 60 years of failed aid.

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Latest News

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Thanks but no thanks: Bangladesh says no to climate aid from the UK

03/16/2010

Bagladesh has refused a $94-million-dollar offer of climate aid from the British government, saying the money, which would have been channelled through the World Bank, comes attached with unfavourable “terms and conditions”.  read more »

Ethiopia aid diverted for rebel arms in 1980s: BBC

03/04/2010

Millions of dollars of international aid for victims of the mid-1980s famine in Ethiopia was diverted to rebels to buy weapons in the African country, a BBC investigation reported Wednesday.  read more »

Foreign aid takes another blow—this time in Australia

Brady Yauch
03/03/2010

Criticism of the high salaries being offered to contractors working with AusAID, Australia's national aid agency, is the latest example of the increased scrutiny facing aid agencies around the world. The criticism comes after a recent audit showed that a number of aid workers are earning more money than the country’s Prime Minister. And they’re doing so tax-free.  read more »

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Sources

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Why foreign aid to Haiti failed

02/01/2006

Although it proudly lays claim as the second oldest republic in the Hemisphere, and the only nation whose slave population defeated a colonial power to become free,Haiti is, and has been, among the worst governed and most undemocratic states. Few places in the world, and no places in the Western Hemisphere, are poorer than Haiti.This paper2 explains why, after consuming billions in foreign aid over three decades, and hundreds of millions specifically for governance and democratization programs, not to mention billions for other programs, Haiti remains politically dysfunctional and impoverished.  read more »

Probe International's brief to SCFAIT on Bill C-31

10/18/2001

All spin and no substance: Bill C-31 is a devious bill drafted to convince the public that EDC is doing something to protect the environment while, in fact, EDC is frustrating efforts to stop its environmentally-damaging activities.  read more »

In the Name of Progress: The Underside of Foreign Aid

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In clear, uncompromising language the book explains where progress went wrong and the remedies needed to prevent foreign aid from doing more of the same in the future.  read more »

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Blogs

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Marshall Plan to Haiti? Not so fast.

As calls for a “Marshall Plan for Haiti” continue to make headlines, an increasing number of reports are beginning to ask: is aid the answer? A recent report from PBS interviews a number of aid supporters and critics, asking them if a massive aid program to Haiti is the best option.  read more »

To help Haiti, end foreign aid

For Haiti, just about every conceivable aid scheme beyond immediate humanitarian relief will lead to more poverty, more corruption and less institutional capacity, says Bret Stephens, writing in the Wall Street Journal. After the immediate impact of the earthquake has passed, and the immediate relief efforts subside, “the arrival of the soldiers of do-goodness, each with his brilliant plan to save Haitians from themselves” will take root.  read more »

Interview with Dambisa Moyo

Dambisa Moyo, economist and author of "Dead Aid", discussing problems of foreign aid to the developing world. Moyo believes that pouring more aid into the coffers of African governments will do nothing to promote healthy economic growth. Instead, she calls for an opening of global trade, lower tariffs and a functioning tax system.  read more »

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