I just came around to Dr. Paul's position on foreign aidSubmitted by jb23 on Mon, 05/21/2012 - 08:59
I now actually support the good doctor on most of his policies. However, when I first followed him, there were many I disagreed with. But over time I've read up on each subject and come around to his position, seeing so clearly how it fits in with all his other positions.
I always considered foreign aid somewhat of a necessity. However, after reading a new chapter in my textbook (I'm studying business, this subject is specifically "Transnational Management"), it points out the massive failure of foreign aid in helping developing countries. Here are the paragraphs that brought me around to Dr. Paul's position, which is essentially: Stop foreign aid, open up the markets, serve as an example and encourage others to open their markets.
Given the extent of global poverty and the lack of clear significant progress in reducing it, there is a growing view that perhaps it is time to radically rethink an approach that relied so heavily on government-funded aid programs. William Easterly, a former research economist at the World Bank, points out that after $2.3 trillion of aid has flowed from developed countries to developing countries over the past five decades, it is clear that the West's model of development has failed. He argues that, just like the old colonialist model, a large portion of foreign aid takes a paternalistic view, in that it defines both the problems and the solutions and provides for neither accountability nor feedback. As a result, for example, over the past 25 years, $5 billion of internationally funded aid has been spent on a publicly owned steel mill in Nigeria that has yet to produce any steel.
In contrast, the outstanding success stories such as India and China have been achieved by unleashing the power of their market economies rather than through massive aid programs. In what the World Bank has called this "the greatest poverty reduction program in human history," hundreds of millions of people have moved out of poverty during the past 25 years. In large part, this amazing transformation has been due to the actions of many MNEs (multi-national enterprises) that, following the announcement of China's open-door policy in 1979, 300,000 foreign enterprises have been approved, and by 2008 had invested $870 billion in that rapidly developing country. Included in that total are 490 of the world's top 500 companies. In addition to helping China, their investments are now having a significant economic impact on these firms which sent almost $300 billion in profits out of China in the period from 1990 to 2007. Such a win-win consequence is due to one undeniable reality: The faster the poor gain wealth, the faster they become customers."
Feel free to use to this convince others on this topic. :)