What's new

Why does the UK give aid to India?

Hafizzz

SENIOR MEMBER
Joined
Jun 28, 2010
Messages
5,041
Reaction score
0
Who, What, Why: Why does the UK give aid to India?
BBC News - Who, What, Why: Why does the UK give aid to India?

The government is expected to freeze the level of assistance given to India at £295m ($480m) a year. But why does a nuclear power with its own space programme need British aid?

In a widely-signalled move, it is anticipated that International Development Secretary Andrew Mitchell will announce the amount of aid given to India will be maintained at 2009/10 levels.

But the decision has attracted criticism from newspapers and politicians who say the UK taxpayer does not need to donate to a state that is itself a foreign aid donor, which is classified by the World Bank as a middle income country (MIC) and whose economy is growing at nearly 10% a year.

However, advocates of aid say a third of the planet's population who are below the World Bank's extreme poverty line live in India. They also argue half of all children in the country are malnourished and it does not have the tax base to eliminate poverty though internal wealth redistribution.

Andy Sumner of the Institute of Development Studies says: "If UK aid was reduced, there is no guarantee that the funding to the poorest states where most of India's chronically poor live would be topped up by the Indian government."

Although the Department for International Development's budget has been unaffected by the government's spending cuts programme, the UK is expected to stop direct aid to 16 countries, including Russia, China, Vietnam, Serbia and Iraq.

The decision to exclude India from this list has provoked attacks from those sceptical about whether this increasingly important economic power is really a worthy recipient of development cash.

Indeed, there is little doubt the nation is experiencing a boom. Its economy is expected to grow by 9% in 2012, social spending funds are also set to increase by 17% and in 2009 it was upgraded by the World Bank from "poor" to an MIC.

The Indian military has conducted nuclear tests, the country operates its own space programme and, according to Forbes magazine, it has more billionaires than the UK.

Moreover, India is itself a foreign aid donor, providing more than £300m ($500m) to poorer countries in 2008.

Conservative MP Philip Davies argues the decision to continue funding the country is indefensible at a time when the British taxpayers are experiencing a spending squeeze of their own.
Massive inequalities

"India spends £36bn a year on defence and £750m a year on its space programme," he says. "What's more, India is one of the fastest-growing economies in the world. It's completely unjustifiable, especially at this time."

However, supporters of the continued aid insist this argument ignores India's massive inequalities.

Its middle-income status, they say, is irrelevant, given that 72% of world's poorest people - defined by the World Bank as those earning less than $1.25 (77p) a day - live in MICs.

Indeed, India has more people in poverty than the whole of sub-Saharan Africa. Its per capita gross national income in 2009 was £725 ($1,180) compared with £25,509 ($41,520) in the UK.

Additionally, the sheer number of people in poverty in India means that it is crucial to achieving the UK's international poverty reduction targets, ministers say.

Mr Mitchell told the BBC's Politics Show that if the government were to meet its eight Millennium development goals - including eradicating extreme hunger and reduce child mortality - it would have to "operate where poverty is greatest".

Moreover, although the country may have a small super-rich elite and a growing middle class, its capacity for wealth redistribution remains limited according to a 2009 World Bank report. It found that even a 100% marginal tax rate on Indian earnings would only plug 20% of its aggregate poverty gap.

"The case for continued UK aid to India is about a third of all the world's poor who live there," says Dr Sumner. "These 450 million poor people are often lower caste and very marginalised."

The debate is sure to continue. But given that the Indian government has debated whether it wants to continue receiving UK aid, the final word on the matter may not come from British shores.

How is aid money spent in India?
BBC News - How is aid money spent in India?

International development aid is one part of the UK budget unlikely to be cut in a squeeze on public finances.

But questions are being asked about how aid is used, and which countries need it.

Last year India got almost £300m from the UK. Some of it was spent on toilets in the country's financial capital, Mumbai.

Humphrey Hawksley reports.

Should the UK fund toilets in Mumbai slums?
BBC News - Should the UK fund toilets in Mumbai slums?

International development aid is one part of the UK budget unlikely to be cut in a squeeze on public finances. But questions are being asked about how aid is used, and which countries need it. India last year got almost £300m from the UK, some of it spent on toilets in the country's financial capital, Mumbai.

The stench from the stagnant, fetid stream of the Queresh Nagar slum in Mumbai hits you as soon as you get out of the car.

The slum itself is bustling and vibrant. There is a line of shops with living quarters above. The stream is behind, the water a murky grey with insects buzzing on top. Some residents have rigged up plastic covers at the back of their homes for privacy. But the children scamper around using the stream, or whatever ground they can find on the disused rail track behind, for a toilet.

"We have to live in these conditions," says La La Nawab Ali, who is showing me around.

"What can we do? You can see the state of it. This is Mumbai."

In another slum at Munjul Nagar, residents show letters, many signed with thumb prints, asking the authorities to finish building a toilet block that has been left half-finished. A similar stench pervades the air.

"It's an extremely difficult and helpless situation," explains Prasad Shetty, an urban planning consultant. "It's an extremely embarrassing undignified demeaning kind of experience for them."

Most of the funding for the sanitation project initially came from the World Bank and was then was taken over by the Mumbai government.

A small amount of British aid goes from the UK Department of International Development (DFID) through charities in England and India, mainly to train people to maintain their community toilet blocks. But many in the slums say they know little or nothing about it.

"You foreign people from over there, you keep on sending so much money," says one angry slum resident. "But the poor person sees nothing."

No water

Central to the scheme is building blocks of public toilets that can be used by the millions of people presently living with no sanitation.

Most of the blocks built so far work, but evaluators say there have been problems with about a third of them. Some have been built with no water supply. Some are not being maintained. One in the Queresh Nagar slum had to be pulled down because it was unsafe. The one in the Munjul Nagar slum has been left half-built because of objections from a developer.

"And somebody even sells the toilets," explained Jockin Arputham, founder of the National Federation of Slum Dwellers. "Sometimes they might have been sold to somebody for a premium."

When asked if that was corruption, he replied: "That is it. It is known to everybody."

The dynamics of the Indian slums are almost impossible for outsiders to fathom. With the Mumbai city authorities spending large sums on other infrastructure projects, questions are being raised as to whether British money is still needed.

Last year Britain gave almost £300m (US$500m) to India in development aid. But India plans to spend more than US$1bn on its space programme next year.

"The Mumbai government does not require British taxpayers' money," says Mr Shetty. "It has money. The government institutions are loaded with money."

Jockin Arputham agrees that India is rich enough to fund the sanitation programme itself. It is a question of priorities. "If it were up to me, I would personally say I don't need [British aid]."

An International Development Committee report released in the UK this month highlighted the issue: "At a time of austerity and a search for savings in the public sector," it said, "it is essential that every pound of public money spent on development assistance has a measurable impact."

Behind the glitter

Britain is about to stop its aid budget to China, which is now seen as being too rich to need it, putting India and other emerging economies under the spotlight.

Both the main political parties in the UK parliament say they would protect the almost £6bn aid budget from cuts.

But the Conservatives say they want the way this money is spent to be far more transparent and independently accountable.

"The British taxpayer is not going to be satisfied with politicians and members of the development establishment saying his money is being well spent," says Conservative development spokesman, Andrew Mitchell. "They want it independently evaluated outside that system."

Liberal Democrat development spokesman, Michael Moore, also wants a closer watch: "We understand that people are very concerned about money disappearing through corruption," he says. "But too often that corruption exists in some of the poorest countries in the world with the poorest systems. We've got to help those countries become better stewards of that money."

But the government development minister, Gareth Thomas, insists such measures are not necessary.

"We have a series of checks on how our aid is spent. Every programme is evaluated on an annual basis," he says, adding: "Look behind the glitter because there are very different Indias with many poor people living in the slums in Mumbai.

"We believe that some of our aid should be used to help build up institutions and try and get more effective state more able to protect its citizens, and more able to invest in its own basic services as well.

"I also think it's in Britain's interest that we help developing countries improve the situation for their poorest people because that in turn helps in range of other ways that makes a difference in the UK."

tdown.gif
tdown.gif
tdown.gif
 
. .
Why post same silly and old thread again and again.

UK also give aid to china and Russia, so what??

BTW, when u call India poor or have most number of poor then how you can deny their right on aid??????


BTW, India is also one of the biggest donors in the world its not a one way street like some other country how run oin aid, donations etc.
 
. . . .
While several countries receive aid from UK and other donors, hence India is no exception since according to a survey report, it has more poverty than Africa.

Pakistan could top list of countries receiving bilateral aid from the UK — SOS Children


Priority areas for programmes in the country are seen as education, health, governance and security, poverty, hunger and vulnerability, humanitarian aid and wealth creation. Over the next five years, the UK’s Department for International Development (DFID) expects to spend over 1.3 billion pounds in Pakistan, which would make it the largest country recipient of UK aid by 2015. However, the aid delivered will also depend on the introduction of tax reforms and the tackling of corruption by the government of Pakistan.
 
.
. .
we are poor people........why people are jealous if UK gives us some bucks.
 
. .
we are poor people........why people are jealous if UK gives us some bucks.

Yeah I'm dying of poverty right now. What's wrong with the UK giving us aid. Maybe noble Pakistan can pitch in too. "More poor in India than Africa" remember?
 
.
Yeah I'm dying of poverty right now. What's wrong with the UK giving us aid. Maybe noble Pakistan can pitch in too. "More poor in India than Africa" remember?

over a billion hungry poor people and we are getting in only millions........where as our neighbors are getting in billions

thats partiality
 
.
The answer is that because out of 19 million employed people 1.3 million people are of Indian origin who pay 23% income tax!! [Yes, income tax in the UK is the highest in the whole world.] Even though Indians only make 2.5% of population, we make 6% of government income. Which is much higher than national average and any other British asian groups [pakistani, bangladeshi and sri lankan.].
 
.
The answer is that because out of 19 million employed people 1.3 million people are of Indian origin who pay 23% income tax!! [Yes, income tax in the UK is the highest in the whole world.] Even though Indians only make 2.5% of population, we make 6% of government income. Which is much higher than national average and any other British asian groups [pakistani, bangladeshi and sri lankan.].

maybe you are right

you should see this interesting video

 
Last edited by a moderator:
.

Military Forum Latest Posts

Back
Top Bottom