Development Planning and Aid Introduction to the Sociology of Development (1990) A. Webster Failure of newly independent, ex-colonies to develop a surprise to rich/western countries – resulted in the 1st development aid. Primarily took the form of infrastructure development i.e. HEP Aid, particularly financial, from bodies such as IMF & World Bank seen as favourable by developing countries: Funds can be invested in Social Utilities (schools etc) Control by western officials reduces potential for corruption More flexibility & better rates of interest then commercial loans West sees aid as a key tool of strategic power, ability to support favoured regimes, stabilise regions etc + ‘Cold War’ (USA vs USSR) – Coffin quote Debt crisis has emerged as countries fail to establish the productive base to produce the currency to service foreign debts. Many African countries now pay more out in debt repayments than they receive from the west in aid payments Need to service foreign debt has seen many countries ‘trapped’ in cash-crop production. Consequently single or at best dual commodity economies emerge, with countries reliant on export of a limited number of crops. i.e Uganda – reliant on export of Coffee for 96% of foreign currency!

Significant proportion of aid is spent on social infrastructure – vital to ensure the ability of countries to ‘take-off’ and move up development ladder, but not good for producing currency to pay of debts Cost of experts – what benefit do they bring? Can it be measured? Average UK expert costs £150 000 (these figures are from late ’80’s/early ’90’s this figure will have gone up by now) When is aid not aid? – when it is US food exports! ‘Dumping’ of cheap, subsidised US food, particularly Wheat in third world countries seriously compromises domestic producers (often some of the poorest in the country to start with!) – adds to rural poverty & unemployment + makes these countries reliant upon food imports. In addition western/US producers are penetrating these markets to process & refine basic foodstuffs to add value – which leaves the poor country! Case study of Bangladesh – Grim!!! Conditions attached to much aid promotes dependency – 70% of UK aid comes with conditions attached, these conditions often designed to favour UK companies and produce more UK jobs and further investment opportunities Majority of aid favours Urban/Industrial populations at the expense of Rural/Agricultural. Rather than stimulating growth across the recipient country it merely acts to increase disparities/polarise situation