Dear Friends:

Praful Bidwai has this morning Guardian,UK(08 02 2012), it appears to me, has 
the last word on India's need of foreign aid.

-bhuban


David Cameron and Manmohan Singh, who has overseen growth of 8%, during a 
business conference in 2010. Photograph: Saurabh Das/AP

Underlying the debate raging over British aid to India is the myth that the 
subcontinent's strong, market-driven growth of the past two decades has pulled 
hundreds of millions out of poverty. The economy is taking off; its people no 
longer need much aid, it is said.
In reality, since 1991, during which time India has experienced the highest 
growth in recent history, there has been no significant reduction in poverty or 
hunger. Two in every five children remain malnourished. A third of adults have 
an abnormally low body-mass index. Half of women of childbearing age are 
anaemic, a proportion far higher than in sub-Saharan Africa. More than 500 
million Indians have no electricity, and less than a third have toilets.
The neoliberal policies unleashed by the prime minister, Manmohan Singh, when 
he was finance minister in the early 90s, have widened class disparities 
obscenely. Numbers such as 8% growth, and the fact there are 153,000 dollar 
millionaires, mean little to most Indians. The Ambani, Mittal and Tata families 
don't live on their planet.
The debate in the UK was fuelled by anger at India's decision to buy French 
Rafale jets rather than the Eurofighter Typhoon, prompting shrill accusations 
of "ingratitude". International development secretary Andrew Mitchell even 
admitted that the focus of aid to India included "seeking to sell the Typhoon" 
– in violation of the stated rationale of British overseas aid, to fight 
poverty and promote health and education.
So if India can spend billions on nuclear weapons, aircraft carriers and 
nuclear submarines, and on a moon mission, does it deserve aid? As was revealed 
this weekend, India has itself told Britain it doesn't want aid.
But this confuses the nature of aid – which is about poor people, not poor 
countries. Many Indians question the government's ballooning military 
expenditure, which has more than tripled since the 1998 nuclear blasts. Instead 
they want substantially improved public services, including food security, 
drinking water, healthcare (India's public health spending proportionate to GDP 
is among the world's lowest), sanitation, and education at affordable prices. 
Great struggles are under way on these issues, which have the potential to 
reshape Indian politics.
Besides, aid is much less wasteful than commonly thought. A small part of the 
international development department's budget might go towards GPS devices on 
buses in Bhopal, with dubious benefits. But more than 60% has gone in recent 
years into education and healthcare.
In 2003, India kicked out all but six aid donors in a fit of pique. The 
Bharatiya Janata Party-led government was upset at the worldwide criticism of 
the 2002 Gujarat pogrom of Muslims and some EU countries' efforts to support 
the victims. Such refusal of aid is morally reprehensible in itself. A 
government which presides over persistent destitution and has failed its most 
vulnerable people for 60 years has no right to refuse aid which could help them.
And though India has launched a modest aid initiative for the least developed 
countries, this shouldn't be cited as an argument to stop aid to India. There 
are even poorer people than Indians in several countries, but without India's 
wherewithal or skilled manpower. There is no reason why India shouldn't be 
donating food to Niger or Libya, or training technicians, policemen, diplomats 
and lawmakers in Afghanistan. This would only be wrong if India did nothing for 
its own people, and merely exploited business opportunities through tied aid.
Britain would be morally and politically wrong to terminate aid to India, home 
to the largest number of the world's poor. Giving aid not only acknowledges the 
injustice of colonial exploitation, it also arises from an obligation to 
redress the gross structural imbalances that continue to mark the world despite 
recent power shifts between states.
Good aid programmes can make humane existence possible for millions who have 
been denied it. Rather than Mitchell's aim to "invest more in the private 
sector" and public-private partnerships – which charge user fees the poor 
cannot afford – Britain should target schemes with a social transformation 
potential. Programmes that resemble a sovereign wealth fund and seek financial 
returns are less beneficial than building up people's human potential
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