Charity &

aid

 

Understanding the different concepts

of charity & aid.

Before we look at this topic further, it is important to understand the concepts. When it comes to aid, we differentiate between humanitarian aid and development aid: 

charity

Charity refers to the voluntary giving of help, typically in the form of money, to those in need, or to an organisation as such. 

humanitarian

aid

Humanitarian aid is the material and logistic assistance to people who need help, often used in connection with emergency situations, like an earthquake, generally short term in nature.

development

aid

Development aid is financial aid given by governments and other agencies to support the economic, environmental, social, and political development of developing countries, generally with a long term focus.

Now all three concepts are idle in nature, yet have significant flaws in the way they are applied today. None of them seems to be working at a larger scale, although tons of money is being invested.

 

What is 

wrong with...

Charities have not been very successful in solving the big problems they are targeting. Charities are simply too small to tackle the mountains of issues thrown at them and our biased system is the reason why they stay small.

... charity?

Non-profits don't stand a chance against for-profits, because they are not allowed to spend money.

Charities and NGOs have a hard time hiring talent as they cannot compensate with competitive salaries. Further, they are not allowed to advertise in order to attract more money or more business nore do we give them time to find a working business model (Amazon had no profits for the first 6 years).

 

Spending money on overhead is a necessity to grow and to innovate. Instead, Charities and NGOs are forced to save money on everything they would really need to grow. 

In case of an earthquake or any similar emergency, of course it makes sense for other nations to step in and help. The important thing however is that this help is acute and short lived. If NGOs over stay and give aid for too long the effects are negative rather than positive.

 

Long-term aid or free products destroy industries. Even worse if the aid ends abruptly and there is no more industry to fill the gap. Humanitarian aid is not a sustainable concept but rather there to alleviate temporary hardship. 

 

Haiti as a prime example is struggling with he negative affects of what could be labelled “over-aid” by the more developed nations. Since 2010 and the disastrous earthquake, up to 10.000 NGOs are operating on the island. One must wonder at this point whether the workers of the NGOs are benefiting more from their work compensation than the Haitians, struggling to learn how support themselves again.

... humanitarian aid?

Humanitarian aid is not sustainable concept but rather there to alleviate temporary hardship.

Haiti as a prime example is struggling with he negative affects of what could be labelled “over-aid” by the more developed nations. Since 2010 and the disastrous earthquake, up to 10.000 NGOs are operating on the island. One must wonder at this point whether the workers of the NGOs are benefiting more from their work compensation than the Haitians, struggling to learn how support themselves again.

Development aid might be the most complex of the three, yet the question “is it working?” is the easiest to answer. Unfortunately, much research derives to a clear “no”. In fact, it might be even worse than that. 

 

Common critics mentioned are the geopolitical agendas of the donor countries, disruptive and corrupt politics of the recipient, or the concept of “tied aid” that binds aid to procurement from private firms of the donor country. Aid has become an industry filled with NGOs and financial organisations that feed of poor countries borrowing money. It encourages corruption and conflict and puts the accountability in the hands of the foreign donor countries rather then in the hands of its domestic citizens. 

... development aid?

The point is development aid doesn't work. In contrast, it is hindering economic growth of the recipient countries. 

Aid should be reduced to give the developing countries a real chance to develop and grow.

one4good's

approach on 

charity & aid:

support of humanitarian aid projects

that default to short term involvement to help people in need during emergencies.

invest in local businesses

We will invest as charity in local business of poor regions to support local economic growth.

reduction of foreign aid

We will fight for a systematic reduction of foreign aid.

support of charity projects

directed to the 10% most disadvantaged.

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