Giving well (or sharing nicely)

Late last week I wrote to my local MP (again) highlighting the need for Australia to increase our aid in order for countries like Cambodia to have a fighting chance of meeting their Millennium Development Goals. Apparently, there is talk in the latest federal budget of cuts to international aid.

Aid cuts would be devastating for many lives and even small increases in aid makes a huge difference in people’s lives. This is because the purchasing power of each dollar is so much greater in developing nations meaning you get much more for your money.

For example, through project funds Steve has paid for laminectomies for patients plus three days of inpatient care for US$600. In Australia, this operation costs at least $15,000.

Then, this note pops into my inbox shouting “Aid to Cambodia rarely reaches the people it’s meant to help”.

This emotive little opinion piece in the Washington Post is basically saying that the aid money that goes into Cambodia will invariably build bigger and better houses for its leaders and that donors should refuse to give any more aid until corruption is addressed.

Honestly, I can’t refute any of it. From what we hear on the ground, the article speaks a version of the truth. However, I am concerned that such articles only serve to create greater distrust and reduce giving.

Already, Australia is giving well below the agreed 0.7 per cent of gross national product and groups such as World Vision have given up on this target now only asking for the Australian Government to meet the 0.5 per cent target. And an embarrassing amount of this is tied to the purchase of Australian goods and services (dubbed “boomerang aid” – the aid that gives back).

The solution is to give aid in better ways. There is much research and many policies written to address these (see The Reality of Aid as an example) but all boil down to a simple few rules.

1. Share your toys nicely – no need to give them all away just one in every two hundred.

2. Give. Don’t rent them out or lend with interest.

3. Make sure there aren’t unfair rules with how they can play with the toys or that they have to pay daddy to fix the toys.

4. The struggling families need to agree to treat their children well and share the toys fairly, being honest with how they are used.

5. Don’t use your wealth to make huge numbers of toy boxes or toy parts at a loss and then dump them on other poorer families who are trying to make these for a living.

While the parents argue over these rules, I am encouraged to see is that there are an increasing number of kids who recognise already that they have plenty of toys and are willing to share. However, I am amazed as to how many (even amongst our own supporters) still distrust organisations to manage toy distribution.

Giving to well established organisations with a proven track record in these countries is always a very very good start.