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Corruption and Foreign Aid

Hat tip: Mises Daily
by
Thursday, November 14, 2002

For a few billion dollars you might expect to be able to bribe some small third world country into cleaning up its act, to defend the property rights of its citizens, to provide a stable currency, and to establish a non-interventionist economic and foreign policy.

With little Switzerlands and industrial revolutions developing around the globe, the U.S. could provide the examples that would establish a classical liberal world order within one generation with less than 1% of the federal budget.

Alas, Americans are united in their opposition to foreign aid—and with good reason! Foreign aid, military aid, debt relief, economic development assistance, and even disaster assistance money—all with “strings attached” to ensure proper behavior—are associated with “fraud, waste, and abuse.”

U.S. aid designed to bring about peace in the Middle East is an ideological seedbed of hatred, war, and terrorism. The big players in foreign aid, the International Monetary Fund and the World Bank, are more likely to bring about economic meltdown and social calamity than economic stability.

Ludwig von Mises pointed out (Planning for Freedom) that foreign aid doesn’t create friends in foreign lands, it creates ideological enemies who wish to do us harm:

The United States, they think, is aiding them because its people have a bad conscience. They themselves pocket this bribe but their sympathies go to the socialist system. The American subsidies make it possible for their governments to conceal partially the disastrous effects of the various socialist measures they have adopted.

Mises is here referring to our “friends” in Europe, but the same could be applied to the Middle East, Africa, the Western Hemisphere, and Asia, with the only possible exception being countries like Vietnam and Australia who receive limited or no foreign aid from the United States or the international organizations that we control.

The fraud and failure of foreign aid is now so obvious that it has ended up in the pages of the American Economic Review!

March 3rd, 2010 | Posted in Web-Only Content | Read More »

The “Spirit of Humanity”

By Paul Craig Roberts
Hat tip: “Information Clearing House”

On June 30, the government of Israel committed an act of piracy when the Israeli Navy in international waters illegally boarded the “Spirit of Humanity,” kidnapped its 21-person crew from 11 countries, including former US Congresswoman Cynthia McKinney and Nobel Laureate Mairead MaGuire, and confiscated the cargo of medical supplies, olive trees, reconstruction materials, and children’s toys that were on the way to the Mediterranean coast of Gaza. The “Spirit of Humanity,” along with the kidnapped 21 persons, is being towed to Israel as I write.

Gaza has been described as the “world’s largest concentration camp.” It is home to 1.5 million Palestinians who were driven by force of American-supplied Israeli arms out of their homes, off their farms, and out of their villages so that Israel could steal their land and make the Palestinian land available to Israeli settlers.

What we have been witnessing for 60 years is a replay in modern times, despite the United Nations and laws strictly preventing Israel’s theft of Palestine, of the 17th, 18th, and 19th century theft of American Indian lands by US settlers. An Israeli government spokesman recently rebuked the President of the United States, a country, the Israeli said, who stole all of its land from Indians, for complaining about Israel’s theft of Palestine.

I knew the “Spirit of Humanity” would fall to Israeli piracy the minute I received on June 25 from an official of an Israeli peace organization a “public advisory” that the government of Cyprus had withheld permission for the “Spirit of Humanity” to leave for Gaza. The US State Department had advised that “The Israeli Foreign Ministry informed U.S. officials at the American Embassy in Tel Aviv that Israel still considers Gaza an area of conflict and that any boats attempting to sail to Gaza will not be permitted to reach its destination.” The “Spirit of Humanity” obtained permission to leave Cyprus when all aboard signed a waiver absolving Cyprus of all responsibility for the crew’s safety at the hands of the Israelis.

As President Obama has called for humanitarian aid to be sent to Gaza, and as the International Red Cross has damned the inhumanity of Israel’s blockade of Gaza, the question that immediately comes to mind is why did not the United States send sufficient US Navy escort to see the “Spirit of Humanity” safely through international waters to Gaza? We send ships against Somalian pirates, why not against Israeli ones?

Read more.

July 2nd, 2009 | Posted in Web-Only Content | Read More »

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