Foreign Aid For Capacity Building

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Foreign aid for capacity building has failed in reducing corruption. This is mainly because the people who have been empowered through technical assistance choose to leave the government institution. For example, the result of the capacity building (which was funded by the World Bank as much as $9 billion loans and $900 million grants) was around 70,000 highly qualified government officials leave the continent annually (Werlin 2009, p. 503). Moreover, some technical assistance becomes useless because the government have no intention to use them. For example: after around $6.5 million aid given to Cambodia to funded the technical co-operation assistance program, the government of Cambodia said that the capacity gained by the government official from this technical assistance is unlikely to be used when they return to their office (Greenhill 2006, p. 29). Foreign aid which goes to countries with high number of corruption failed in reducing global poverty because it increases the corruption rate and worsens the poverty’s condition of these corrupt countries. It is estimated that at least a quarter of US$525 billion aid that is provided by the World Bank has been misused (Moyo 2009a, p.52). According to Moyo (2009a, p.49), the foreign aid has become the main supporter for corruption because it provides the biggest source of money to be corrupted. Moreover, take a look in the case of Nigeria. Since 1960, this country has received around US$400 billion of aid (Burleigh 2013). Yet, since 1960, the corruption in Nigeria is estimated around US$ 380 billion (ibid.). Although it is not clear where the source of the money that is being corrupted, but it seems that if no or less aid is given to Nigeria, there will be less corruption in Niger... ... middle of paper ... ...onality (p.55). One example for this situation is the debt relief in the Democratic Republic of the Congo. In 2003, this country requested a debt relief through HIPC (Heavily Indebted Poorest Country) initiative (IMF 2010). One requirement in HIPC debt relief program is that the beneficiaries need to be free from corruption (2009a, p.53). Although, in 2010 the Democratic Republic of the Congo did not fully free from corruption, this country got as much as US$ 11.1 billion debt relief under the HIPC Initiative which was granted by the World Bank, IMF, bilateral aid and commercial creditor (IMF 2010). This example shows that often, conditionality does not work. It is bad because if the donors ignore the conditionality (by giving aid to any countries regardless of their situation), many foreign aids will be useless, and therefore the global poverty cannot be reduced.
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