Foreign Aid Review

Summary:

• In the past 5 years Australia's overseas aid budget has doubled and in the next 5 it will double again.
• By 2015 we will be spending 8 billion dollars on helping people overseas.
• It is not understood why the aid program is growing so fast.
• Aid does help but only when it is put to good use.
• This aid does help though especially when it comes to emergency relief after disasters but this only accounts for 7% of today's program.
• This aid is supposed to help long-term poverty as a billion people still live on under $1.25 a day.
• Poverty is being overcome. In 1981, 54% of the population lived in extreme poverty. By 2005 this had fallen to 25% and by 2015 it will be less than 15%.
• Aid is not the reason for poverty decrease rather economic growth is. Many of the world's populous nations are catching up.
• China has lifted half a billion people out of poverty since 1990 due to economic growth.
• Countries are finding their own way out of poverty so why is Australia doubling its aid program?
• Our money is displacing other countries money that would then be used on something less important.
• Charity is another way of showing our power.

The Author is presenting a story on how what Australia is doing is irrelevant in helping poverty be abolished. Poverty is not decreasing due to aid but rather by economic growth. He doesn't believe that the money is helping but rather is just presenting a nice image of Australia to the rest of the world. Australia is giving so much aid so that they can impress America and get on the UN security council so that we can be safe in the long run.

I think Australia is giving more aid because they want to show the power and wealth of the country. The money that is being used primarily is going towards countries that are using the money for what they would have bought with their money. They then are buying unnecessary things. Some of this aid is going towards the right reasons but only 7% is going to emergency relief.

Positives: 

It gives Australia an image to others so that we look good.

We are trying to build relationships with other countries. Goodwill.

We might get a spot on the UN security council.

Negatives:

This money could be used to make Australia better.

Development could increase.

This money could be used to fix problems such as our own poverty or unemployment.

I still believe that this aid is helping others but it must be researched better so that it is going to a proper cause and not being wasted. This money could really make a huge difference if it is used in the right way.