In the following transcript, Pieter (Lord) Bauer (sometime Prof at London School of Economics, recently deceased) is in conversation with John Blundell.
The issue of government aid to Third World countries is rather similar to the practice of welfare payments within developed countries -- although the poor benefit to some extent, the welfare state is also a superb method for creating and maintaining large numbers of middle class jobs and the subsidising of middle class families. The latest Family Credits brought into existence last week by the Labour Government will subsidise families from the poorest in the land right up to families with incomes of US$100,000 (one hundred thousand) per annum. It is not automatic, however, and needs personal application -- requiring a close study of a booklet of 47 pages of small print. Considering that substantially more than half of the genuinely poor cannot read at all (one definition of this is: cannot find the word "plumber" in the yellow pages) then there's obviously going to be a delay before all the deserving actually understand Family Credits and fill in their application forms. Anyway, back to international welfare: <<<< JB: In the "Oxford Dictionary of Political Quotations" you are credited with saying: 'Aid is a process by which the poor in rich countries subsidise the rich in poor countries.' Amplify that a little. PB: When people talk about aid, they only mean governemnt-to-government subsidies. aid doesn't go to the miserable people you see on your television screen. It goes to the rulers. And the rulers tend to be the most prosperous people in their countries. That is what I meant. JB: Is money going from the poor taxpayer in rich countries through our government . . . PB: . . . . to the other government, whose personnel tends to be well off, relative to the rest of the population. JB: So it sounds as if you feel auid can't do all that much to help these countries develop. PB: Certainly. If you want to talk in semi-technical language, the most aid can do, at best, is slightly reduce the cost of borrowing of those countries -- which they're able to do, very heavily. JB: So the very best best scenario is it is a slight help. But I would also take it that it is a major hindrance. PB: Yes. It contributes to, and promotes the politicisation of oie in these countries. and that, in turn, intensifies the political struggle and diverts people's attention from productive economic activity to political life. . . . . JB: When you first began to publish these ideas, to talk about these ideas, how were they received? PB: I'll give you an unambiguous answer -- badly! JB: By everybody, by your fellow academics, by the public? PB: No, by my fellow academics, because there were Oh, so many of them on the gravy train of aid. But from the public at large, I had quite substantial fan mail. The theme was generally: "Thank you for helping me to keep my sanity". JB: So it was members of the public who had come to similar conclusions themselves? PB: Yes, but did not know how to formulate them. I formulated them for them. >>>> Keith Hduson ---------------------------------------------------------------------------- -------------- Keith Hudson,6 Upper Camden Place, Bath BA1 5HX, England Tel:01225 312622/444881; Fax:01225 447727; E-mail: [EMAIL PROTECTED] ________________________________________________________________________
