WHO BENEFITS FROM DEVELOPMENT AID?
Development Aid, Project Aid etc. is aiding the industry of the donor country. It is usually TIED AID, meaning that the loans provided through the “aid” program have to be used to buy equipment and services from the “donor” country industry. The “donor” countries decide how and where to spend the money. In Indonesia they negotiate the project with the related government organisation. Any briberies to be paid to win the contracts are just build into the loan amount. So, who benefits from the “development aid”?? Mainly the donor country industry. The “developing country” receiving the aid is in fact subsidizing the donor country industry who receives the funds generated thru the loan program. The donor country ties the loan to its industry. The receiving developing country ties itself to a heavy burden of inflated loan repayment. In Indonesia the IGGI and other development projects starting in the 1970’s were all developed on this basis.The donor country identifies projects it wants to f
