DFID was established as a separate department in 1997 under the New Labour Government, and its aim was to focus exclusively on delivering overseas aid, and over the last 23 years its budget has been increased steadily to around $15 billion a year, meaning that the UK was one of few developed countries to meet its commitment to spend 0.7% GDP on aid, part of the old Millennium Development Goals.
The new conservative administration had been making noises about merging DFID with the FCO for some time, and it finally made the announcement in June 2020, and by September, DFID was no more. (Many DFID employees accused the government of doing this by stealth, using Covid-19 to disguise the move.)
This will probably refocus aid spending on defence and trade rather than poverty reduction
The Foreign and Commonwealth Office lists as its primary responsibilities:
‘pursuing national interests, promoting Britain as a force for good in the world, British security, as well as (since the merger) reducing poverty and meeting global challenges’.
According to The Conversation this means the UK government has now changed its focus on how it spends aid.
It will now be prioritising promoting Britain’s national interests – trade and security, rather than on global poverty reduction. This was a trend that had already started to happen before the merger and shows how national political priorities can shape in very direct ways the way international aid money is spent.
Historically, DFID has tended to portion out aid money to projects that are already running, rather than setting up its own new projects, with Health care and Disaster relief being two of the larger expenditure areas, and countries such as Ethiopia, Bangladesh and Nigeria receiving the most aid.
However, now we will likely see more being spent in the areas of governance, security, and trade assistance, with security risk countries such as Pakistan and Afghanistan maybe receiving more aid, as well as countries that have well established trade links with the UK and with potential to benefit UK companies abroad.
All of that is in line with using aid to promote national interests.
It’s too early to say whether or not aid money will now be spent more effectively under this new regime, but it’s certainly worth knowing about this change if you’re studying the global development option as part of A-level sociology!
Abraaj Growth Markets Health Fund was set up in 2016 and invested in private health care systems in developing countries. One of its stated aims is to buy up cheap land and build private hospitals with the intention of providing low-cost private health care for people in low-income countries.
It started in 2016 and managed to attract $1 billion worth of aid money from diverse sources, mainly the Bill and Melinda Gates Foundation but it has also received £75 million from the UK government’s aid budget.
The Fund established projects in private health care in Kenya, Nigeria, Pakistan and India.
Ebola recently resurfaced in Democratic Republic of Congo, and has now infected more than 2500 people in the Eastern part of the country, near the border with Uganda.
Ebola is one of the world’s most infectious and deadliest diseases: as of 22nd July 2019 the World Health Organisation reported 2503 cases in this latest outbreak, with 1764 deaths. (Source: Relief Web).
The World Health Organisation first declared an Ebola outbreak in the DRC in August 2018, but the number of cases have increased dramatically since Spring of 2019. This is now the second largest Ebola outbreak after the 2014-16 epidemic in Liberia, Guinea and Sierra Leone, which killed 11, 300.
Health workers have a new vaccine which appears to work to deploy to help keep the disease under control but they face the following barriers to treating people:
There is ongoing conflict in Eastern DRC. This extends to attacks on health care facilities – there have been around 200 such attacks reported which have killed 5 people.
Local people are being displaced as a result of the conflict – at least 300 000 so far, and some of these are heading across the border to Uganda, where there have been some reported cases of Ebola.
There is a local rumor that aid workers are actually infecting people with Ebola because they are ‘paid by the corpse’ – and in a country mired by corruption and conflict, I guess this sounds plausible.
It remains to be seen whether the Ebola outbreak can be kept under control: the ongoing conflict and local suspicions are certainly going to hamper efforts, and it seems aid agencies are going to have to spend a lot of time working with locals and building trust in order to keep things under control!
Relevance to A-level Sociology
This recent tragedy should be of interest to any students studying the Global Development module in A-level sociology. The case of Ebola in the DRC illustrates the relationship between conflict and health problems and it also shows some of the local challenges Aid agencies face when trying to deliver emergency aid.
UK Development aid intended to maintain stability in Northern Syria has apparently ended up in the hands I Jihadists who abuse human rights.
This is according to a recent BBC Panorama documentary, which aired this Monday.
The problem seemed to be down to one private UK company who DFID channelled the money through.
The programme uses document evidence and interviews with aid workers based in Turkey who talk about bags of UK tax payers aid money being handed over to Syrian peacekeeping forces – who were actually working with local Jihadists to ‘maintain a balance of power’ in the region
The document evidence seemed to prove that the company knew this was going on…
So how strong an argument does this evidence make against aid?
Not a very strong one outside of this specific case IMO.
The advantages of NGO Aid over Official Development Aid
Generally smaller and thus more responsive to the needs of local communities than the kinds of large scale development projects undertaken in the days of Modernisation Theory.
There is no political agenda as is often the case with government aid, and thus aid is not ‘tied aid’ – it is freely given.
NGOs can provide a more continuous supply of aid compared to governments, which can be effected by elections
NGOs are more likely to help the poorest of the poor, unlike TNCs who will only invest in slightly more developed countries that are more stable because these provide a better prospect for profit.
NGOs provide one of the most critical voices of government aid agendas and provide a broader range of knowledge about life in developing countries compared to Official Aid Agencies
Limitations and Criticisms of Non-Governmental Organisations
NGOs provide a tiny amount of aid compared to Governments and the World Bank – ODA from Britain is around £10 billion a year, total donations to development charities measured in the hundreds of millions. This relative lack of funding means NGOs can only do a limited amount compared to bigger, official aid agencies. NGOs cannot help to bring about Industrialistion or serious economic growth, only help small local communities with social development.
NGOs spend much of their money on glossy advertising campaigns and administration costs rather than helping people in the developing world – a good 25% of money raised is spent on such costs.
A lot of aid campaigns portray images of Africans as starving and helpless in order to generate sympathy and thus donations. This perpetuates the idea of Africa as a helpless continent incapable of helping itself, whereas the opposite is actually true – Africa is full of incredibly creative entrepreneurs.
NGO Aid can often be misguided, doing more harm than good such as with the ‘buy a goat campaign’ or the ‘sponsor a child campaign’.
There is a very wide range of non-governmental organisations (NGOs). NGOs are groups of concerned citizens who are independent of the government and business, and are thus nominally non-political and non-profit organisations. NGOs typically have charity status and raise funds through a combination of voluntary donations from the public, but also grants from governments and other international development institutions.
Many NGOs are tiny, focusing on development in one region and specializing in one area, others, however, are global institutions, have huge budgets and work in several countries on numerous types of development project. This section focuses on these larger ‘aid organisations’ with an international focus – such as Oxfam and Action Aid. Although such organisations have an international focus, they still have a tendency to divide their attention so they focus on hundreds of different micro-level projects at one time.
Commentators generally point to four functions of NGOs in development
The development function – Probably the most obvious – This typically involves focusing on small scale aid projects such as local irrigation schemes, or developing rural health and education schemes in conjunction with local communities.
The Empowerment Function – More so than with private companies and Governments – NGOs aim to ‘empower’ local communities – This involves striving to give local communities a role in how aid projects are developed, but also lobbying International institutions like the European Union to establish trade rules which do not unfairly advantage Western companies and farmers. (We’ll come back to this point later).
The Education Function – Oxfam is a good example of an NGO that puts a lot of money into developing education for schools and advertising to keep developing world issues in the public consciousness.
The ‘emergency aid function’ – when natural or social disasters occur – Earthquakes, Hurricanes, Famines for example – NGOs are often the front line in the delivery of emergency aid.
The following two thinkers argue that aid can work, but it needs to be better targeted in order to be effective. This is really a return to ‘neo-modernisation theory’.
Paul Collier (2008)
Collier’s analysis of aid suggests that aid is merely a ‘holding operation preventing things from falling apart’. However, he does argue that without aid, the countries of the bottom billion would have become even poorer than they are today.
However, Collier’s evidence also indicates that the more aid is increased, the less is the return on economic growth. Collier argues that aid is often rendered ineffective by two obstacles, or traps in some recipient countries:
The conflict trap – too many countries receiving foreign aid are engaged in expensive civil wars or military conflicts with their neighbours.
The bad governance trap – Collier highlights the problem of kleptocracies – the corrupt elites which run many developing societies. The commission for Africa estimated that the amount of money stolen by corrupt elites and held in foreign bank accounts is equivalent to more than half of Africa’s debts.
Collier argues that these traps prevent aid from being spent effectively – because a significant proportion of aid money gets siphoned off into funding the military or simply into the pockets of rich elites.
Peter Riddell (2007)
Riddell (2007) argues that rich countries need to shoulder the blame for the failure of aid because:
They often fail to distribute it to the countries that need it. For example, less than half of all aid is channelled to the poorest countries.
There are too many donors and projects, which fail to co-operate with each other and undermines the effectiveness of aid.
Aid agencies often fail to promote a sense of ownership of development projects among local people, and so the projects fail because the locals don’t support them.
Chapman et al (2016) – A Level Sociology Student Book Two [Fourth Edition] Collins.
Should Foreign Aid be Abandoned or Adapted? Huffington Post Article
Early modernisation theoristsbelieved that it was essential to inject aid into countries to establish infrastructure and change attitudes. From the 1950s to 70s aid programs seemed to have a positive effect on many developing countries as both economic and social development increased, however this progress seamed to stall from the late 1970s.
Contemporary supporters of aid believe that aid is not necessarily a bad thing, but aid needs to be targeted, its effects monitored and accountability measures need to be in place, so that aid money doesn’t go astray, like the $10 billion lent to Indonesia during General Suharto’s rule between 1965-1995.
In the ‘End of Poverty’ (2005) Sachs notes that large scale aid can work when it is practical, targeted, science based and measurable. He believes in aid as ‘one big push’ to sort out specific problems. He points to the following evidence to support his view that aid works:
Firstly, aid aimed at improving health has been particularly successful. Aid money has led to mass immunisation of children against diseases such as smallpox and measles, polio, diphtheria. Smallpox was practically wiped out with $100 million of very targeted aid aimed at vaccinating those most at risk. Today, Barder (2011) points out that every year foreign aid pays for 80% of immunisations and saves 3 million lives a year.
The recent sharp decline in Malaria deaths is largely due to targeted immunisation, paid for by international aid, a cause championed by the Bill and Melinda Gates foundation
Secondly – The Green Revolution – In the 1960s, Western Aid assisted in the green revolution in China, India and South East Asia which saw rice yields increase by 2-3 times, leading to surplus rice being produced for export. Such countries were then able to use the income generated by these cash crops to diversify and grow their economies, transforming into Newly Industrialised Countries (The Asian Tiger Economies). The video below outlines the case for the Green Revolution.
Thirdly, Numerous countries, known as the International Development Association (IDA) graduates have gone on to ‘drive to maturity’ following large injections of aid money. Riddel (2014) argues that there is a substantial body of evidence that South Korea, Botswana and Indonesia have all benefited economically from Official Development Assistance.
Aid can support the Interests of Developed Countries (*)
According to Marren (2015), there is plenty of evidence that aid is shaped by the self-interest of the donor countries:
Aid may be used as a ‘sweetener’ to gain access to resources and markets and foster better trade links. The USA has used aid to guarantee access to scarce resources such as oil, while the increased donor activity of China in recent years may be linked to its need for raw materials. This goes some way to explaining why more aid money goes to lower-middle income countries rather than low-income countries – put simply, donor countries stand to gain more from giving aid the slightly better off rather than the very poorest.
Aid may be a way stimulating the donor economy. Some countries attach conditions to aid stipulating that a proportion of the funds must be spent on goods manufactured in the donor country. This is known as ‘tied aid’. The UK banned this kind of aid in 2001, although research conducted by The Guardian newspaper found that only 9 out of a total of 117 major DFID contracts (worth nearly £750 million) had gone to non-British companies.
Aid may be a way of strengthening political links and securing strategic interests. Countries which are viewed by the Americans as allies in the ‘War against Terror’ are generously rewarded with aid. A recent study of U.S. Aid since the 2000s showed that the main destinations were Afghanistan, Iraq and Egypt. Similarly, UK aid is increasingly being spent on military objectives.
Statistics on the Benefits of UK Aid (*)
The majority of UK aid spent between 2015-2019 was spent in Africa, and you can get a detailed breakdown of expenditure by sector and region in the most recent DFID report linked below (NB DFID has now merged with the FCO, so whether future reporting will be the same remains to be seen!)
Combatting malnutrition – From 2015-2020 DFID reached 55.1 million children under 5, women of childbearing age and adolescent girls through our nutrition-relevant programmes.
Water, sanitation and hygiene – Between 2015 and 2020 DFID has supported 62.6 million people to gain access to clean water and/or better sanitation.
Education – Between 2015 and 2020 DFID supported at least 15.6 million children to gain a decent education.
Jobs and Income – From 2015/16 to 2019/20 DFID supported 5million people to raise their incomes or maintain/gain a better job or livelihood.
Family Planning – Between April 2015 and March 2020, DFID reached an average of 25.3 million total women and girls with modern methods of family planning per year
Health – Immunisations – From the start of 2015 until the end of 2018, DFID support immunised an estimated 74.3 million children, saving 1.4 million lives.
Access to Finance – Between 2015 and 2019 DFID supported 69.2 million people to gain access to finance, including 35.4 million women, representing 51% of the total
Energy – From 2015/16 to 2019/20 DFID installed 771 KW hours of clean energy capacity.
Of course there is a question mark over how effective the aid spent in the above statistics has been, which is one of the many criticisms made of Official Development Aid, which you can read about in this post here.
While recognising that relative poverty exists within rich and poor countries alike, the programme focuses on extreme poverty, defined as people living on less than $1 a day, a level at which daily life involves a struggle to get enough food to eat.
Hans (he’s so accessible I’m sure he wouldn’t mind first name terms) starts by putting poverty in historical context, by looking at how wealth (measured by GDP per capita) has changed over the last 200 years. To do this, Hans converts the GDP figures into the amount each person earns per day, ranging from those who live on $1 a day (as many do in Malawi) to those who live on $100 a day (as most people in Sweden do). As shown in the still below – only about 12% of the world’s population today live in extreme poverty.
The story of the last 200 years is that we’ve basically moved from a global situation characterised by extremes of wealth and poverty (broadly speaking 1800-1970) to one in which most people world now live in ‘the middle’ in terms of global wealth distribution. In the video clip below, Hans tells this story.
The biggest shift has occurred in the last 50 years – in the 1970s, 50% of the worlds population lived in absolute poverty (2 billion amongst a 4 billion global population). In 2015, even with world population growing by 3 million to 7+ billion, only 1 billion, or 12.5% of the world’s population live in poverty.
So the best-fit picture of today’s global population isn’t one of a massive divide between the rich and the poor, but one of the expanding or ‘big middle’** – Most people in the world today earn between $1 to $10 a day, and many of these have transitioned out of absolute poverty within the last few decades.
Dollar Street – A Global Family Portrait.
To illustrate the differences in living standards around the globe, Hans draws on a number of case studies.
$1/ day – Malawi – Here the focus is on a couple with eleven children. They are basically subsistence farmers and have a small field of maize which they rely on for their basic food. The field is so small they have to endure a hunger season, during which they only eat once a day, and the children fall sick because of lack of food. In a poor season (As shown later in the video), when the rains are irregular, the food may only last for half the year, so the hungry season is long!)
The children go to school, but there are no school meals, so there’s no food until bed time on some school days. The family struggle to pay for the ‘hidden costs’ of education such as school uniforms and books.
There are no jobs in the area, but the families keep grafting – the father turns old bits of tin into watering cans and the mother makes dumplings, two products which are sold to neighbours. However, local people are too poor to be anything other than occasional customers.
In the household there is no electricity or running water and everyone sleeps on the floor, no mattresses. The house is built from perishable materials and once a week the mother has to spread fresh mud on the walls and ceiling to stop the house falling apart. The husband is gradually building a brick house, but it will take him four years to complete it.
These people are literally struggling to build their future bit by bit.
Countries in which significant numbers of people live on less than $1 a day include Burundi and Malawi.
The Big Middle – Up to $10 a day
To illustrate where the majority of the world’s population now live in income terms, we go to Cambodia to focus on some new arrivals to the ‘big middle’ – We focus on a family who live about an hour away from the capital Phnom Penh, but are still close enough to feel the benefits of its development.
Their house is made from more durable material – bricks and plastic/ iron sheets, they have clean water, bicycles, a little car, beds with mattresses, radios, TVs, and electricity.
The Family’s living conditions are far from easy but there is no hungry season like in Malawi, and they have earned enough to buy various life-changing technologies – such as a water pump so is there more time to devote to paid work.
The nearby capital city Phnom Penh is at the heart of an economic boom, mainly thanks to textile exports, and the benefits reach a long way into rural areas.
The father in this family has benefited from this – migration to the city has meant there are fewer farmers, so he now makes $300 a month from growing and selling grass which people feed to their cattle, and he has bought a small bike so he can deliver more efficiently.
However, the mother is currently pregnant with twins, and one of them is upside down…they want a cesarean and this will cost them $500 which will mean they need to borrow money, a price which could put them back into dire poverty for years to come as they struggle to pay it back.
The crucial thing which prevents this from happening is that the family qualify for Cambodia’s recently introduced free health care, available for free for the poorest families only. This is assessed by means of a ‘Poor Card’ – people are asked a number of questions about their standard of living (which is checked later) and if they score below a certain amount of points they qualify for free health care for the whole family, which ensures that complications in childbirth do not result in financial catastrophe.
Among the many countries included in the ‘big middle’ are The Philippines, Columbia, Rwanda, and Bangladesh. However, there are obviously differences, and if you look carefully, these are not all ‘equally poor’ (but this isn’t expanded on). How to eradicate extreme Poverty
It’s amazing how much life is improving for s many people in so many ways – this is the greatest story in human history, and if we want to lift the remaining billion people out of extreme poverty we need to learn from the lessons of the majority of countries which have lifted themselves out of poverty in the last century.
The basic lesson is that all of these countries have invested in human welfare, in such things as public health care systems and education, which has reduced the child mortality rate, and the birth rate, and altogether this has resulted in economic growth.
Hans demonstrated this by looking at the historical relationship between the child mortality rate and GDP per Capita from 1800-2015. (The child mortality rate depends on many things, such as improved health, education and gender empowerment, so it acts as a proxy indicator for these other aspects of human progress).
The general trend is that in many countries, the child mortality rate goes down first, which is followed by sustained economic growth for many years. It seems that once the Child Mortality rate gets to about 10%, this is when economic take off occurs. This happened in at least the following countries:
In short, the lesson of how to end poverty in 15 years – invest in human progress even when resources are limited.
The video rounds off with going back to Malawi to demonstrate that all is needed to lift many farmers out of poverty is investment in small scale irrigation systems, so crops can be easily watered when rains are irregular. A dam would transform the lives of small farmers in remote areas by allowing them to grow not only more staple food, but also a greater diversity of crops which could be sold.
The investment required is relatively little, but who will pay? The private sector won’t, because there is no profit, and governments in poor countries are still too poor, so the third option is International Development Aid.
However, Development aid needs to be refocused away from the richer developing countries – Currently, countries such as India and China receive aid equivalent to $300 per person, but the poorest countries, mostly in Sub-Saharan Africa, receive only $100 per person. In short, aid is going to the wrong places.
Hans argues that we should perceive aid to end poverty not as charity, but as an investment. There are three basic arguments for this:
1. Extreme poverty breeds problems such as war and conflict.
2. If we lift people out of extreme poverty, they will become the customers of tomorrow, and possibly the entrepreneurs of tomorrow.
3. It is the most effective way of combating population growth – below $1 a day, the average number of babies per woman is five, above, it the average is 2 or less.
In conclusion, Hans suggests we would be mad not to end poverty in 15 years, and that compared to the other two problems the world faces: climate change and war and conflict, this goal is actually easy to achieve.
**Another way in which Hans illustrates the growth of the ‘big middle’ is by pointing out the following statistics:
80% of people have electricity at home? (the audience thought 40%)
83% have have got vaccinated against measles? (the audience thought 30% )
90% of girls out of ten go to primary school (in that age group) (the audience thought 40%).
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