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FINANCIAL AID ACTUALLY
PERPETUATES THE MISERY

by Daniel Amarilio - PW TIMES

Although it may sound pardoxical, the financial aid that rich countries render to poor countries actually helps to perpetuate the misery of the poor; not only in poor countries, but in the rich ones as well.

The recently released U.S. Census indicates that the nation’s poverty level has increased.

And just imagine; this is the situation today when there are only 6 billion people on the planet. Can you imagine what the situation will be like by 2015 when there will be an estimated 35% more poor people in the world? By the year 2040 this number is expected to increase to 60%. The simple reason is that poor people have more children than the rich.

Over the next twelve years, in the Middle East alone, demand for jobs will soar to include 100,000,000 new potential workers. Nowadays even children know that the Middle East is one of the most unstable areas in the world. This area is corroded by hatred between the Shi'ites, Sunnis, Arabs and Israelis. Where will these 100,000,000 work places come from? I call it a dream in a summer night. Over the
years, millions of dollars will be dissipated for `aid support` to the poor. Half of this enormous financial aid disappears before it reaches the poor.

It is true that globalization has made hundreds of western companies look for cheap labor in the Middle East and Asia, but even globalization cannot solve the problem. Millions of workers in the Middle East work for 3-7% of the salaries of the people in the West. They hardly making a living. To think they will form the foundation of a new middle class in fantasy at best. In this way globalization is transformed into a very strong exploitative power that rules the middle class.

Poverty has existed since the dawn of human creation, so we don't need academics to understand its tragedy.

The academics have proven that they cannot cure the root causes or poverty; at most they address its symptoms. A virtual industry of financial aid has developed to address this very problem. However, nearly 50% money allocated to such programs is devoted to the maintenance of this bureaucracy. In fact, the present system has increased corruption all over the world.

Occasional suggestions are made by these aforementioned experts that state changes should be made in the world trade markets. They suggest that the rich countries should buy goods from the poor countries, that the system of competitive advantage should be realized. Theoretically, this is true. But practically the truth is that the poor countries have no goods to offer except for slave labor.

The specialists are very proud to point to the fact that the number of people living on fifty dollars a month will decrease 50% over the next fifteen years. Their monthly salary be seventy dollars instead. Do you think it will make these people middle class, happy and that they will stop dying from the dire conditions brought about by poverty? Financial help cannot eradicate the problem of poverty. It will even perpetuate it.

Only one conclusion can be drawn from our current failure to irradiate global poverty: traditional aid packages do not solve the poverty and hunger that plague the world, manufacturing and marketing must be developed and employed by poor nations. They must be made to be strong independent economic entities. Instead of spending millions of dollars on subsidizing undeveloped countries, we should give them
exclusive rights to produce simple products and export those products cheaply into the world market. How many products do we need, then – a few hundred?

I consider that the rich countries also should get an exclusive production right for one product, because in those countries there are a lot of poor people also. If this comes true, rich people will become richer, because the poor people will become better consumers and will be able to buy products they can’t afford at the moment.

Just imagine every N.I.S. country, from Eastern Europe or Asia and Africa, could become exclusive producers for the whole world of one simple product, on conditions and in accordance with the World’s Common Micro Market. This way the countries will be able to give work to millions of people and will gain billions in income every year. Of course, this income should be invested in creation of socio-economic bases in these countries. Increased prosperity and stability will only serve to promote world peace and democratic institutions. We will be helping to create a fairer, more humane, more peaceful, and more democratic world. It will be a truly enriched world. PW TIMES

What is your opinion on this article, Dear Prime Minister? I will be glad to receive your response.


Read more details in:
http://www.povertyvision.org/the_amarilio_plan.htm

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Copyright  2000-2003 Daniel Amarilio
Maps courtesy of www.theodora.com/maps used with permission.

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