In my previous post I mentioned the issue of foreign aid and its use in politics. An interesting, in-depth analysis of international aid, economics and politics, may be found here. Not surprisingly, foreign aid is often just a masquerade for more corporate welfare.
“As a condition for aid money, many donors apply conditions that tie the recipient to purchase products only from that donor. In a way this might seem fair and balanced, because the donor gets something out of the relationship as well, but on the other hand, for the poorer country, it can mean precious resources are used buying more expensive options, which could otherwise have been used in other situations. Furthermore, the recipient then has less control and decision-making on how aid money is spent. In addition the very nations that typically promote free-markets and less government involvement in trade, commerce, etc., ensure some notion of welfare for some of their industries.”