Executive Summary Report on Africa

The aid that is given to impoverished countries is not enough, and most of the aid given is not truly used to target poverty. Many countries do not contribute aid out of pure good will instead they donate for commercial and economic reasons. Japan for example contributes the equivalent of millions of U.S. dollars to Vietnam; the money is used there to help develop a market for Japanese exports, but not to feed or clothe the thousands of homeless and impoverished in the country. The official international target for aid contribution is 0.7% of a country's total income from taxes, business, etc. But the average aid given by G7 donors (United States, Canada, Germany, France, Italy, the U.K., Japan) is only 0.07% of their total income. The G7 countries contribute 1/10th of what is suggested to assisting other countries. Ireland and Norway, countries with fractions of the wealth of the United States, proportionately contribute 14x and 38x, respectively, as much as the U.S. does. The United States and other G7 countries, being the most developed countries in the world, have an obligation to at least meet the international target.

Not only must the amount of aid given be improved, but the quality of the aid given must rise. 61% of aid given is "phantom aid". Phantom aid is aid that is not targeted for poverty reduction. It is aid that does not represent an effective resource transfer. Phantom aid is aid that also counts toward immigration, which is a domestic matter and not an international one. Real aid can be increased and phantom aid decreased if the money used by the receivers of the aid is used to target poverty. Donors should keep track of what happens to their money after they donate it and determine whether it is used effectively. Real Aid estimates that all donors contributed 0.7% of their income by 2010, and donors and recipients are held mutually accountable for funds, then poverty would be wiped off the face of the earth. As a class, we should feel responsible for letting others know these facts. We could have a presentation or distribute pamphlets; anything that could educate the people about what is (or should be) being done to help other human being; our neighbors.