Monthly Archives: July 2012

Each year governments spend $120 billion on humanitarian and development aid, but an average of 60 percent never leaves the donor countries. It’s called “phantom aid,” and is spent on salaries, conferences, publicity, transportation, and contracts for Western businesses that make or deliver aid supplies. Miss Polman says the Americans are the worst offenders; an estimated 70 to 80 percent is phantom aid.

The perverse consequences of foreign aid.

What’s wrong with humanitarian aid? The short answer to the question posed by Dutch reporter Linda Polman in the subtitle of her book is “everything.”

When Smedley D. Butler called his 1935 pamphlet War is a Racket, he knew what he was talking about. He had fought as a Marine Corps officer in Nicaragua, Mexico, the Dominican Republic, and Cuba, and concluded that he had been nothing but a “high-class muscle man for big business, for Wall Street, and the bankers.”

Likewise, Miss Polman knows what she is talking about when she says foreign aid is a racket. She has tramped through countless refugee camps in Africa, interviewing aid workers, refugees, African government officials, and rebel leaders. What she found is one of the biggest con-games of our time.

That there is genuinely terrible suffering, disease, poverty, and violence across much of Africa and Asia she does not question. That western humanitarian and development aid is the answer, or even part of the answer, she does question. She thinks all it does is perpetuate poverty, fund corruption, and foster dependence. To the question “So we should do nothing then?” she answers that that would be better than what we are doing now.

Miss Polman is not the first reporter or chastened aid worker who has come to that conclusion, yet every year the money spent on humanitarian and development aid increases—she says the idea of donor fatigue is a myth—and what she calls “the crisis caravan” rolls on. Why? The short answer is money.

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