Forighn Aid: Where Does All the Money Goes?


Does Ethiopia have a ‘government’ or is she under the care of the international community?
This is a very appropriate question to ask when one observes the number of countries and international organizations involved to do the basic service of what the government suppose to do from providing clean water to the citizens to infrastructure building the country needs for the survival of the population.

But, looking at the number of countries and institutions involved in many development projects one wonders if there is a government running the country or it is left for the international community?

In our transparent governance watch work and ‘Why fight Corruption?' series, we are compelled to ask what is the ‘government of TPLF/EPRDF of Ethiopia doing while most of its job is funded and done by the donors and non governmental organization? And where does all the funding goes and who is accountable for all the expenditure and the accountability required to prevent corruption?

The questions of foreign Aid and the corruption that follows has been the debate in almost all international development forums by the same people over and over again. Recently, Dr Moyo Dambisa book “Dead Aid” raised a hot debit when she argued the Aid model is broke, it is corrupting the officials and should be abandoned causing havoc in the foreign Aid community and the recipients defending it with out much to show for all the expenditures all these years.

What is striking is with billions of dollar expenditure no one is not sure where most of the money goes, how it was spent and why there is no public disclosure of the recipients and their credential and background of the managers.

Ethiopia, the darling of the international Aid receives the second highest foreign assistance in Africa, next to Egypt, but yet beside the occasional double digit talk the regime speaks, and the housing boom driven by the Diaspora spending and the road construction courtesy of donors the average Ethiopian standard of living remain the same or declined. And the number of people needing foreign food assistance continues to increase substantially with no tangible solution in sight.
26 donor countries 13 multilateral organization, and 40 funding agencies mostly western are actively engaging in one thing or another donating and funding millions of dollars worth of 1000s of projects every year. In addition, 100s of private foundations and over 3800 NGOs operating in the country are active on one thing or another.

Looking at the data we can not help but wonder, with only a handful of NGOs 20 years ago to over 3800 now, the growth the regime claim may have been too low in the poverty industry than the private sector.

It is common knowledge unscrupulous business and NGOs are created, particularly by the ruling party's affiliates to facilitate this massive infusion of fund and becoming a major ground for corruption and cronyism as it is common in the private sector. Its is also not unusual to hear the best jobs are found in the Aid sector and the industry is striving alike any other sector.

We believe expecting transparency from the regime and it’s affiliates is fruitless since the rule makers and breakers are the same, but challenging all the donor governments and funding agencies to demand transparency as a condition for funding can be an effective tool.

We also believe the ruling party affiliated businesses and NGOs who accumulated millions of dollars out of foreign Aid and through unethical business practices must be challenged through all means, including through donor governments and funding agencies.

Corruption must be fought in all fronts and each one of us can help