A Vicious Cycle of Humanitarian Aid and Economy

June 21, 2012 - PRLog -- Many people are beginning to question the donating of humanitarian aid to poorer nations and individuals. This is because many people are beginning to realize that the results seem to be more negative than positive. While it may feel good to write a check or click donate and feel as if you have done something, the fact is that you may be doing more harm than good. The reasons for the negative effects are many and varied but we will explain some of the main points of the argument against this type of assistance.

Humanitarian Aid Hurts the Economy

Some people feel that offering humanitarian aid will hurt the economy of both the giver as well as the receiver. The economy of the giver is affected because this money can no longer be used to help themselves or their area of the world. Many people give money to third world nations without realizing that there is rampant poverty in their own backyard. This neglect of their own area results in increased crime and an increased need for social services. The giver then foots the bill for these services through their tax money. In addition, the money that they sent overseas could be used at home to fund ideas and entrepreneurs and to help with job creation.

The receiving country will use the aid to purchase food and medicine. This will often put local producers out of business as they cannot compete with free charity. No one will buy food from a local farmer when they can have food for free. The result is that the aid puts farms out of business, which then causes increased starvation after the aid has run out.

Humanitarian Aid Provides a False Sense of Security

Many studies have demonstrated that humanitarian aid provides a leveling factor in the society that receives the funds. People in these societies can be lulled into a false sense of security that the aid will always be there and they come to rely on it for their sustenance. This does not bode well for troubled economic times like we are facing now, which cause aid to dry up and run out. Societies that have come to rely on aid will suffer greatly during these times.

Another factor is that societies and populations that rely on aid to meet their basic needs will never address the underlying causes of their problems. Many countries do not pursue the solutions that are necessary to make them less dependent. This can be seen in the first world with the rise of the welfare class. An ever increasing number of people are born into poverty and will likely remain there as long as there is a handout to help them. This type of defatting cycle is no good for anyone involved. The poor person resigns themselves to their fate, while giver throws money at a problem without trying to find an actual solution.

Humanitarian Aid is Often Abused

The simple fact is that many third world nations suffer from corruption. The same is true for many social service systems. These systems are being played by many people and are being abused. Many times, in third world nations, money will simply go missing or the ruling class will keep the funds for themselves. In other cases, the infrastructure to deliver the aid is not in place and food and materials are left unused and wasted.

Of course, during times of economic crisis due to extreme weather and other natural disasters, it is important to lend a hand. The aid we are discussing is long term aid to nations that never seem to lift themselves out of the cycle of poverty. While it may be painful to cut off aid completely, the end result will be less suffering for those who can break the defeatist cycle of depending on others for basic survival.

Article supplied by Jacob Pettit from Homes of Hope: http://homesofhopeint.com/