How Britain STILL hands out millions in aid to booming economies
BRITISH taxpayers still give China and India millions of pounds a year despite Government messages about ending direct aid because neither booming economy needs it, a damning review has found.
uk debt is in trillions of pounds we are paying interest on debt given to these rich countries by the uk.
The report was conducted by the Independent Commission for Aid Impact (ICAI), which was set up to improve aid quality and value for money.
In several cases, the department failed to set out clear goals for the new relationship or to communicate the changes well within recipient countries or to the UK public, it said.
Ending direct aid to help poor people in those countries did not necessarily mean ending all help – but poor communication risked confusing the public.
Both India and China will be beneficiaries of substantial financial assistance from the new Prosperity Fund
“In China, DFID terminated all assistance on domestic develop ment issues (in 2011), but continues to spend £8-10 million a year from centrally managed schemes on helping China to become a more effective donor and investor in developing countries. Recently, after a change in UK policy, other departments have increased their aid expenditure on Chinese development, most notably through the Prosperity Fund [to promote economic reform and growth].”
It went on: “In India, DFID terminated ‘financial aid’, as announced, but continued with technical assistance and a substantial development capital investment portfolio (aid-funded loans and equity investments).
“There is also substantial UK aid flowing to India through other channels, and both India and China will be beneficiaries of substantial financial assistance from the new Prosperity Fund.
“While DFID’s public statements have been accurate, earlier publicity potentially created an impression that all aid was being phased out. Against that background, the reasons for continuing and scaling up assistance have not been clearly communicated to the UK public,” said the report.
“The fact that the report finds our institutions in need of significant improvement only adds salt to the wound.
“It is concerning that DFID is still falling short of the standard expected of it… but hopefully the new Secretary of State, Priti Patel, will address this.
“Every penny wasted in mismanagement is a penny away from the neediest abroad or a hard-pressed taxpayer at home.”
A DFID spokesman said: “DFID is a world leader in helping countries leave aid dependency behind and stand on their own two feet, building a safer, more prosperous world.
“We are disappointed that ICAI has rushed the publication of this inaccurate report that simply does not tell the whole story.
“As countries build upon their economic development Britain is determined to strengthen strategic partnerships that facilitate trade, boost business and combat poverty.
“DFID’s work supports these partnerships in a manner that provides value for money, always helps the world’s poorest and is open and transparent to the British public.”