Searchlight Logo
special_image

    • News
      • Front Page
      • News
      • Breaking News
      • Press Release
      • From the Courts
      • Features
      • Special Features
      • Sports
      • Regional / World
      • Regional / World
    • Opinions
      • Editorial
      • Our Readers’ Opinions
      • Bassy – Love Vine
      • Prof. J Robinson – Eye of the Needle
      • Dr. Fraser- Point of View
      • R. Rose – Eye of the Needle
      • On Target
      • Dr Jozelle Miller
      • The World Around Us
      • Random Thoughts
    • Advice
      • Kitchen Corner
      • What’s on Fleek this week
      • Health Wise
      • Physician’s Weekly
      • Business Buzz
      • Hey Rosie!
      • Prime the pump
    • ePaper
    • Obituaries
      • In Memoriam / Acknowledgement
      • Tribute
    • Contact Us
      • Advertise With Us
      • Letters To The Editor
      • General Contact Information
      • Contact our Webmaster
    • About Us
      • Privacy Policy
      • Interactive Media Ltd
      • St. Vincent & the Grenadines
    • Subscribe
    • News
      • Front Page
      • News
      • Breaking News
      • Press Release
      • From the Courts
      • Features
      • Special Features
      • Sports
      • Regional / World
      • Regional / World
    • Opinions
      • Editorial
      • Our Readers’ Opinions
      • Bassy – Love Vine
      • Prof. J Robinson – Eye of the Needle
      • Dr. Fraser- Point of View
      • R. Rose – Eye of the Needle
      • On Target
      • Dr Jozelle Miller
      • The World Around Us
      • Random Thoughts
    • Advice
      • Kitchen Corner
      • What’s on Fleek this week
      • Health Wise
      • Physician’s Weekly
      • Business Buzz
      • Hey Rosie!
      • Prime the pump
    • ePaper
    • Obituaries
      • In Memoriam / Acknowledgement
      • Tribute
    • Contact Us
      • Advertise With Us
      • Letters To The Editor
      • General Contact Information
      • Contact our Webmaster
    • About Us
      • Privacy Policy
      • Interactive Media Ltd
      • St. Vincent & the Grenadines
    • Subscribe
One Region
October 16, 2012

Aid: The golden taps being turned off

Austerity budgets throughout Europe, and Government cuts on welfare spending, have caused many people to argue that aid allocations to foreign countries should be reduced and the money spent on domestic needs. This will shortly have an adverse effect on countries in the Caribbean unless they advance solid proposals with achievable outcomes for continuing to receive aid.{{more}}

Popular media in many European countries have been in the forefront of the argument to cut aid. They have revealed how aid has been misspent and even used for the purchase of military equipment in certain countries.

Among the influential persons in Britain who would like to see the government “turn off the golden taps and stop flooding the developing world with our money” is Lord Michael Ashcroft, a significant contributor to the coffers of Prime Minster David Cameron’s Conservative Party.

Lord Ashcroft is no Scrooge. A wealthy man himself, he contributes generously to a number of charities and other organisations doing valuable and helpful work in many developing countries. As he said in an open letter to the recently appointed Minister for International Development in Britain, Justine Greening: “I do not fully agree with the argument (that) we should turn our backs on the world’s poorest people because of tough times at home”. Yet, his concern about Britain’s aid spending is reflective of many both in the Conservative Party and the country at large. He says: “They think it morally wrong to carry on giving away such vast sums abroad – more than £300 per household – at a time of domestic spending cuts”.

Except for the Department for International Development (DfID), every government department in Britain has suffered severe spending cuts. DfID’s budget has not only been protected, it is expanding from £7.8 billion in 2010 to £11.5 billion in 2015.

What influential persons like Lord Ashcroft want is to see aid provided on the basis of “rigorous analysis of all available evidence”.

The reason that Caribbean countries, except for Haiti, should be highly alert to this increasingly prevalent thinking in Europe is that they are all classified as Middle Income Countries (MICs) and there is an increasing contention that the MICs should use their resources to look after their own and stop expecting the taxpayers of other countries to do so.

This thinking is already evident in the approach of the European Union (EU) to aid. The European Commission has unveiled a Differentiated Development Instrument which has graduated 18 MICs from aid, except in certain specific circumstances. It is generally agreed that the decision to “graduate” MICs under its “differentiated” approach will migrate into the European Development Fund (EDF) under which Caribbean countries get aid from the EU as part of the African, Caribbean and Pacific (ACP) group.

Significantly, Ms Greening, at a Conservative Party Conference shortly after her appointment, is reported to have “criticised the EU for giving aid to less poor countries and said she would be meeting European development officials next week to make sure the EU targeted aid where it could have the greatest impact”. She is quoted as saying that “it was not right for the EU to provide aid for countries higher up the income scale”.

There is still some hope that Caribbean MICs may not face an immediate ‘graduation’ from EU aid. Apart from the fact that the terms of an arrangement still exist under the Cotonou Treaty between the EU and the ACP that runs until 2020, other factors, such as the vulnerabilities of small states, could be taken into account. A vulnerability index for small states was developed by the Commonwealth Secretariat using criteria in addition to per capita income. While these additional criteria have not been adopted by institutions such as the World Bank and the World Trade Organisation (WTO), they are compelling enough not to be wholly ignored. But, it is important to understand that there is no guarantee that, in the present climate in Europe, they will be recognised. The popular sentiment is to redirect aid allocations to financing domestic needs.

What then can Caribbean countries do in these circumstances? What is certain is that many of them continue to need aid, particularly for infrastructural development. At the moment, much of that aid is coming from Venezuela, China or Taiwan, placing them in an increasingly dependent relationship with these three countries. In any event, while aid from these three sources is vital, it is not enough.

Caribbean countries, therefore, have to be mindful of Lord Ashcroft’s admonition to the British International Development Minister and gear their aid requests “on rigorous analysis of available evidence”. If the Caribbean countries do not adopt this approach, some of them – especially the smaller ones with extremely limited natural resources – may have to slip back into the status of less developed countries before they become eligible for significant aid.

The British based Overseas Development Institute has made an argument that Caribbean countries should take on board. In a paper by Jonathan Glennie, it points out that “those countries that are graduating from aid dependence to more sustainable levels of aid need to set in train policies to smooth their graduation, supported by key donor allies”. But, this will not happen without strategic thinking, planning and organisation by the Caribbean countries themselves. The specific and realistic needs of individual Caribbean countries have to be identified with a clear idea of their sustainability and their contribution to job creation and production. Once those needs are identified and agreed, a donor conference should be organised to endorse the needs and agree to the financing, including through changed rules in the international financial institutions.

The region’s organizations – the Caribbean Community Secretariat, the Secretariat of the Organisation of Eastern Caribbean States and the Caribbean Development Bank – should be initiating this work, or at least placing it on the agenda of governments. The problem is not tomorrow, it is now.

(The writer is a Consultant and former Caribbean diplomat)

Responses and previous commentaries at: www.sirronaldsanders.com

  • FacebookComments
  • ALSO IN THE NEWS
    Mangrove destroyed in conservation area – Opposition Leader
    Front Page
    Mangrove destroyed in conservation area – Opposition Leader
    Webmaster 
    September 4, 2026
    OPPOSITION LEADER Dr. Ralph Gonsalves said that while people are focused on the sale of Chatham Bay, Union Island, there is an environmental massacre ...
    Prime Minister Friday defends sale of lands at Chatham Bay
    Front Page
    Prime Minister Friday defends sale of lands at Chatham Bay
    Webmaster 
    September 4, 2026
    CHATHAM BAY, Union Island is worth protecting, but protecting it does not mean it cannot also deliver value for the people of St Vincent and the Grena...
    HIV/AIDS advocate says he was fired
    Front Page
    HIV/AIDS advocate says he was fired
    Webmaster 
    September 4, 2026
    HIV/AIDS advocate and educator Winfield Tannis- Abbott, is claiming political victimization after his position as Aids Coordinator for Public Sector E...
    FBI to visit SVG says Leacock
    Front Page
    FBI to visit SVG says Leacock
    Webmaster 
    September 4, 2026
    PERSONNEL ATTACHED TO the Federal Bureau of Investigation (FBI) are expected to be in St Vincent and the Grenadines (SVG) soon according to Minister o...
    Friday and Gonsalves honour Allen
    Front Page
    Friday and Gonsalves honour Allen
    Webmaster 
    September 4, 2026
    PRIME MINISTER Dr Godwin Friday and Opposition Leader Dr Ralph Gonsalves crossed party lines to deliver deeply moving tributes to Alpian Allen’s endur...
    Daughter eulogised her dad whose “heart was right with God”
    Front Page
    Daughter eulogised her dad whose “heart was right with God”
    Webmaster 
    September 4, 2026
    DR JANELLE ALLEN, spoke with love and nostalgia of her dad Alpian Allen, who always made time for his family and prayer. She was delivering the eulogy...
    News
    Report wrongdoing by police – acting deputy COP
    News
    Report wrongdoing by police – acting deputy COP
    Webmaster 
    September 4, 2026
    COMMENTS of “nothing is done” when civilians report acts of wrong doing by members of the Royal St Vincent and the Grenadines Police Force (RSVGPF) ha...
    Current revenue declined in 2026 second quarter
    News
    Current revenue declined in 2026 second quarter
    Webmaster 
    September 4, 2026
    PRIME MINISTER Dr. Godwin Friday, on Thursday, August 27, 2026 told the House of Parliament that there was a decline in current revenue received for t...
    Electrician charged with multiple offenses
    From the Courts, News
    Electrician charged with multiple offenses
    Webmaster 
    September 4, 2026
    A 44-YEAR-OLD electrician of Belair charged with multiple offenses, was granted EC$10,000 bail with one surety when he appeared at the Serious Offence...
    SJC students Kingstown, dominate Youlou Arts Foundation Art Competition
    News
    SJC students Kingstown, dominate Youlou Arts Foundation Art Competition
    Webmaster 
    September 4, 2026
    STUDENTS OFTHE St Joseph’s Convent Kingstown, took the top three places in the third annual Secondary Schools’ Art competition organised by theYoulou ...
    Nephew pays tribute on behalf of North Leeward
    News
    Nephew pays tribute on behalf of North Leeward
    Webmaster 
    September 4, 2026
    THE NORTH LEEWARD community celebrated the legacy of their former Parliamentary representative Alpian Rudolf Otway Allen, remembering him as a devoted...

    E-EDITION
    ePaper
    google_play
    app_store
    Subscribe Now
    • Interactive Media Ltd. • P.O. Box 152 • Kingstown • St. Vincent and the Grenadines • Phone: 784-456-1558 © Copyright Interactive Media Ltd.. All rights reserved.
    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok