AN OUTSIDE VIEW

There was an article on this subject in the Guardian today, with reference to India. It begged the perpetual question of precisely who pays and who benefits from aid. There are many poor people in Britain and most other "first world countries". This is due to maldistribution. Because of the way tax structures are loaded against them, the poor in the rich countries contribute disproportionately to any aid that comes from their governments. Conversely, there are plenty of wealthy people in "poor" countries. Indeed, some "poor" countries are blessed with great natural resources such as mineral wealth and the problem is one of distribution within the countries concerned. It is also the case that the main beneficiaries of aid from "rich" countries to "poor" ones tend to be the wealthy people in the poor countries. There is no "trickle-down" mechanism. Again, there is maldistribution. Ultimately, the problem can be resolved only by ...