Considering the rapid globalization happenning in the world, we all know that being a non-developed country, either we like it or not, we have to depend on foreign aid, if we're to survive. But why do our fake patriots try to convince people that we need not to??? This is because we're in a country which has the dirtiest politicians in the whole wide world.
Here's an example that clarifies the dirtiness of them. Actually its our president.
"If we are offered genuine aid we will take it; if not we will forget about aid and do our job. We will not be dependent on aid", said President Mahinda Rajapaksa commenting on the reported suspending of aid by the UK, addressing editors and media heads from the Sri Lankan media, at Temple Trees today.
When asked for his views on the reported stopping of aid by the UK Government, President Rajapaksa said this could be a reference to post-tsunami aid offered to Sri Lanka.
"We will use our own money. We cannot wait for assistance from any sources to carry out our responsibilities", the President added.
Referring to the resettlement of Internally Displaced Persons, President Rajapaksa said the work of resettlement in the East had been initiated and was being successfully done. The media had reported that there were several lakh IDPs in the East, but it was now known that the actual figure was much less. The delay in their resettlement was because the mines buried by the LTTE had to be cleared and the people had to be provided with necessary utilities before resettlement.
"Today, we use our own money for the resettlement work. We did not wait till the INGOs came with their money. The work is going on successfully. We are providing electricity to the people being resettled. New roads are being built in these areas. These are the causes for delays, but they are not
reported", he said.
President Rajapaksa said he had told all officials carrying out resettlement work that there should be no difference in treatment for people from the South and the North and East. They should all be treated alike.
"The work of resettlement, whether the tsunami displaced or those displaced due to the conflict is the responsibility of the Government. We will discharge this obligation whether we get aid or not", the President said.
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Well, the fact that we need foreign aid has nothing to do with globalisation or the fact that we're still developing. Plenty of countries developed without a major role being played by foreign aid. (Most of the Asian Tigers for instance). We need foreign aid bc we've got such a messy fiscal position. Govt debt of 93% of GDP, and budget deficits have only been growing. Therefore we have next to no capital available to fund the infrastructure that we so badly need.
That said, our access to concessional finance is also diminishing, specially from the multilateral donors like the ADB and the World Bank. So we will invariably need to consider more commercial borrowing, but the key is for capital to be spent on necessary, economically viable projects and not on vote seeking in electorates of political expediency. That way it'll contribute to future GDP growth and will ease the debt burden when it does hit.
Agree with ddm.
Also, accepting foreign aid can sometimes be detrimental. The World Bank sometimes puts stupid conditions on loans, which are bad for the country.
For example, in Bolivia, they forced the Govt to privatise water before lending to them. Now poor people can't afford water to drink or wash or anything. Stupidity.
Read this for reasons why the World Bank is naughty at times...
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