Isu Good

Corruption of Foreign Aid 1
PREFACE
Foreign aid is widespread throughout the world and is an immense aspect of civilization’s
globalization and interdependence. The actions of the developmental assistance industry are
aimed to support or create a state of stability in a country. However, the industry allows for the
association of institutions pursuing economic financing, authority, and power, which makes the
conditions ripe for the spread of corruption. Corruption leads an industry away from the motives
of true altruism, resulting in immoral actions and intentions. The presence of corruption in the
developmental assistance industry causes the intentions of foreign aid to become venal and
hidden from the public. Flawed foreign aid evolves from providing aid to erroneous
governments, encouraging dependency, and facilitating the distribution of corrupt aid.
Throughout the developmental assistance industry, the corruption of foreign aid severely harms
the overall objective of providing assistance and progression to countries and their people.
Firstly, the corruption of foreign aid is present through the provision of developmental
assistance to corrupt governments and nations. Corrupt governments in the developmental
assistance industry are political bodies governing a state that seek to utilize foreign aid for
reasons other than its intended purposes. In such situations, the donor country seeks to benefit
from this transaction, for example by promoting exports and trade relations between countries.
Donor countries thus support the fact that, “[according to some measures of corruption] more
corrupt governments receive more aid” (Alesina and Weder). This indicates that large amounts
of foreign aid are managed by deplorable regimes that create poverty within their state.
‘Mismanagement’ of funds within these countries is quite prominent; thus, societies cannot be
certain foreign aid (specifically bilateral aid) is spent appropriately. Reuben Adeolu Alabi, is an
economic studies professor for Ambros Alli University, Ekpoma, Nigeria, who conducted a
Nigerian study that showed in 2012 administration received 26.9% of total aid. In the same year,
5.4% of aid was allocated to agriculture; 9.4% to energy and mining; 1.9% to industry and trade;
and 6.8% to transportation. Sectors such as education, health, and agriculture suffer even though
aid is intended for their assistance. Therefore, foreign aid supplied to corrupt governments lacks
the control to ensure appropriate and beneficial spending.
Secondly, developmental assistance corruption is present in the formation of foreign aid

dependency. Bilateral aid and aid from non-government organizations (NGOs) such as the World
Bank provide millions in tied (loan) aid to countries requiring assistance. As a result, millions in
debt repayments is required per annum, which leads to the repayment at the expense of the
education and health care sectors. Requests to cancel debt are dealt with new propositions of aid,
and the cycle begins once again. Studies suggest an “inflection point in the average aid-growth
and aid-investment relationships when aid exceeds roughly 15-25% of GDP” (Michael A.
Clemens). Donation period amounts (based on GDP), intensity, and duration influence foreign
aid dependency. Furthermore, using financial aid as a long-term strategy inhibits development
and begins to produce negative effects. Without a balance in developmental assistance, or a
strategy to break away from tied aid, the number of states afflicted by poverty due to dependency
will only increase.
Thirdly, the corruption of developmental assistance is present through the distribution of

corrupt aid. Corrupt aid refers to the poor quantity and quality of aid from donor nations and
NGOs. Developmental aid is recognized as crucial to assisting poor developing nations advance
out of poverty. Donor countries often implement conditions on aid forcing the recipient to invest
in overpriced goods and services from their own economy. A United Nations study found that
this lessens “the value of aid to recipient countries by 25-40 percent” (Deen).Therefore, this
ensures that capital stays tied to the donor. However, this also negatively affects the use of the
aid and developmental possibilities. Poor quality of aid severely affects the efficiency of
developmental assistance in the recipient countries. The USAID Afghan program with the
United States constantly abandons project aid and construction plans to private organizations.
This often results in the poor maintenance of project and services. Corrupt aid deviates from the
intent of developmental assistance due to the poor quality and quantity of aid provided.
Ultimately, there are multiple issues in the actions of the developmental assistance
industry and this results in negative consequences to foreign aid. When foreign aid is corrupt, the
safety, quality, and the arrival of aid to citizens is not the predominant priority for NGOs, donor
governments, and recipient governments. Donor countries exploit the dependency of aid by
failing to ensure an exit plan from tied aid, and by utilizing large amounts and long periods of
bilateral-tied aid. Global Affairs Canada Minister of International Cooperation – Beverley Jay
Oda reports that “More than one-third of our other aid was tied to the purchase of goods and
services from Canadian suppliers” (Global Affairs Canada) in 2009.
Former information officer at the United Nations in Sri Lanka, Thalif Deen, states
Canada is one of the leading causes of aid dependency as a result of the use and large amounts of
tied aid. Corrupt governments exploit their privileges by failing to provide aid for education,
health, and agriculture. Even though developmental assistance was intended to be divided
between these sectors. As previously stated, corruption and misuse of developmental assistance
is a common practice by donor countries. Britain News, The Guardian, reports 22.83% of the
total bilateral aid in Canada is not directly transferred to developing countries and is instead
being divided between administrative, student, and refugee costs, development awareness
activities, and debt relief (Appendix I). Observing Appendix II, the increase in bilateral aid to
Africa results in a decreasing per capita growth which represents how the quantity of foreign aid
is less effective than quality. Powerful institutions in the developmental assistance industry
develop aid dependency, support corrupt regimes, and distribute corrupt aid. Therefore, flawed
foreign aid in the developmental assistance industry benefits donors, NGOs, and recipients, yet
compromises the development of foreign aid for citizens who need it.
The international non-government organization, Transparency International, defines

corruption as, “the abuse of entrusted power for private gain” (Transparency International
Editors). Corruption is further defined as two types: active and passive corruption. An example
of active corruption is bribery. An example of passive corruption is allowing oneself to be
bribed. International organizations are reluctant to discuss corruption because they want to avoid
bad publicity and prevent the loss of their funding. Both types of institutions affect the
developmental assistance system and distribution of aid. However, IGO’s serve as the main
setting for formation and reflection of objectives, and NGO’s serve as the distribution and
support of these objectives. As a result of the significant roles that are played by IGOs and NGOs
in the developmental assistance industry, any corruption produced, condoned, or aided in,
immensely affects the quality and intentions of foreign aid.
SUMMARY OF RESEARCH METHODS
This independent study unit was researched utilizing a variety of sources. It discusses the
corruption of foreign aid and how it is a prevalent and widespread issue in modern times. Search
engines such as ProQuest, Google Scholar, Google, and Bing were primarily used. Encyclopedia
Britannica, The Wall Street Journal, Forbes, The Guardian and multiple other scholarly
websites were visited to obtain facts and background information. The contents of these online
websites include experts’ websites, reports, newspaper articles, and magazine sections.
Numerous reports by the World Bank, Harvard, and the Center for Global Development were
explored in regards to foreign aid and developmental assistance. Websites of non-government
organizations such as UNICEF and ActionAid were also frequented. Aid on the Edge of Chaos
was one book used in addition to the factual evidence and detailed information from the other
sources, to aid in the completion of this report.
BACKGROUND
The purpose of the developmental assistance industry is to provide aid to developing

countries to improve the wellbeing and quality of life of its citizens. More precisely, it involves
bilateral grants from one government to another, tied aid (loans), and ‘project’ or humanitarian
aid. This occurs between a donor and recipient government, NGOs and recipient governments, or
NGOs and direct distribution to citizens of the recipient country. Multiple reasons influence the
transactions of foreign aid, such as, “economic assistance … to prevent friendly governments
from falling under the influence of unfriendly ones … to achieve a country’s diplomatic goals …
or [to] promote a country’s exports” (Williams). As a result of the observation of foreign aid
over multiple decades, the developmental assistance industry has implemented multiple new
strategies to advance foreign aid and development in recipient countries. Foreign aid is on the
rise yet is often criticized and evaluated in contemporary times. Modern foreign aid is said to
have originated in the eighteenth century; however, in actuality, foreign aid has been in practice
since the earliest forms of military assistance.
Depictions of foreign aid date back to texts that described the kingdom of Jerusalem in
1252. Pilgrims and crusaders played an important role in the military. Hospitallers, who were
members of a religious order, provided medical assistance and aid to those in Jerusalem.
Arriving pilgrims provided military assistance to the Latin East, as well as spent money and
therefore boosted the economy. Their influence was a vital source of aid that directly benefited
the military. The driving force behind the author’s text appears to be advocating for support of
order and therefore foreign assistance. This early text bore the first evidence of foreign aid that
had a positive impact on the world and depicted the benefits involved. The author clearly
recognized the ability to boost an economy, military, and health care system with foreign
assistance from outside the society.
The eighteenth century saw the beginning of modern foreign aid through bilateral
assistance between Prussia and Britain. In 1973, Britain was allied with Austria- Prussia’s rival
and Prussia was allied with France - Britain’s rival. Austrian Empress, Maria Theresa sought
Britain’s assistance to reclaim Silesia from Prussia after the War of the Austrian Succession.
Once Britain refused, an alliance with France was made in 1756. This left Britain with no major
allies in continental Europe. An alliance with Prussia was formed to reinstate the balance of
European powers and prevent a European war. Following an attack on Austria in 1756, the
kingdom of Prussia was on the brink of collapse due to lack of finance. To aid their ally, Britain
sent large amounts of financial aid and on April 11th 1758, the Anglo-Prussian Convention
solidified their alliance. Britain employed the use of financial assistance to strengthen their
political relations with Prussia, much like countries in the current century often do. The
advancement from strictly military and resource assistance is evident. Additionally, the
eighteenth century marked the rise of developmental assistance as modern and bilateral foreign
aid. To this day the developmental assistance industry continues to grow and is still advancing
and improving.
The nineteenth and twentieth centuries saw immense amounts of foreign aid being
transferred from European powers to their colonies. These centuries introduced the basis of
improving infrastructure to increase a nation’s economic output. The focus in these eras was on
economic development even after colonies gained their independence. Author and academic
Rosalind Eyben states, “there was the idea that countries had to catch up, that Western Europe
and countries like Australia, Canada, and North America were developed... they were the goal
that everybody else had to reach” (Phillips). This resulted in the tremendous growth of the
foreign aid system with globalization and colonization around the world. Also in these centuries,
the divide between the first world, western democratic countries, and communist countries
became apparent. Therefore, these centuries marked the spread of the developmental assistance
industry as well as the divide in the standing of countries globally.
The twentieth and twenty-first century display the advancements of the current foreign
aid system and modern developmental assistance. The main system and size of modern foreign
aid is related to two major advancements that followed World War II in the twentieth century:
the implementation of the Marshall Plan to ‘rehabilitate’ or restore the economies of seventeen
European countries post-World War II, and the formation of significant organizations like the
World Bank, IMF, and United Nations. International funds are allocated by these bodies, and
these bodies then assess the qualifications and impact of foreign aid.
In addition, these centuries mark the rise of developmental assistance as diplomatic tools
in the creation of alliances and strategic advantages. For example, during the Cold War the
United States provided assistance to Greece and Turkey to influence them to resist the spread of
communism. Following the death of Joseph Stalin in 1953, communist based countries donated
foreign aid to less-developed countries to gain influence. Since the end of the Cold War, foreign
aid has been a component in peacemaking initiatives, as well as crucial to their transition from
communist countries to democratic and capitalist nations. In addition, foreign assistance is still
used to promote economic assistance in current times. The modern developmental aid industry
has widely changed during the twentieth and the twenty-first century in regards to the type of
aid, reasons for aid, and purposeful expansion of the system.
The advancements of any industry involve a variety of aspects which determine its
success and capabilities. In the developmental assistance industry, corruption of foreign aid is a
primary factor. As Australian Senate member Pauline Hansons explains during her speech in
1996, “In this financial year we will be spending at least $1.5 billion on foreign aid and we
cannot be sure that this money will be properly spent, as corruption and mismanagement in many
of the recipient countries are legend” (Hanson). Foreign aid is distributed on the moral principle
of assisting the recipient citizens and its government. Yet, as Senator Hanson notes, the primary
factor in the mismanagement of aid is a deviation from these principles which results in
corruption. Corruption is not the violation of laws or principles of institutions but instead “a
certain kind of influence, within an economy of influence, that has a certain effect” (Lessig).
Therefore, corruption of foreign aid influences and deviates from the intended principles and
morals of the developmental assistance industry. This is illustrated by reliability, neglect, and
ignorance of numerous aspects of foreign aid. Corruption by donor countries, NGOs, and
recipient countries immensely affects the developmental assistance industry and contributes to
uneffectiveness and an increase in public criticism.
Firstly, corruption of foreign aid is present through reliability. By definition, reliability is

“the quality of being trustworthy or of performing consistently well” (Oxford Dictionaries).
Corruption becomes a continuous cycle because of the reliance on tied aid and the vulnerability
of those in need. Reliability facilitates dependency by creating trust. In the developmental
assistance setting, dependency results from tied aid from a donor country. Tied aid affects the
recipient country because it has to pay for the donor’s overpriced goods. The elimination of tied
aid would make a “difference because it is not tied to overpriced exports from the aid supplying
country, or to unwanted or overpriced technical assistance” (Anna Thomas). Tied aid ensures
that both parties profit, rather than the recipient country profiting to the detriment of the donor
country. The objective of reliability is to ensure the continuous relations and benefits to the
donor country.
Secondly, corruption of foreign aid by institutions occurs by their neglectful behavior. In

this situation, neglect is synonymous with the concept of failing to care for the lives of innocent
civilians requiring aid. Rose Kennedy stated, “Duplicity is it seems a characteristic of the State;
so too is regime apathy, neglect, and corruption.” (Peebles). Kennedy’s quotation essentially
means that neglectful regimes partake in actions that are duplicitous. When recipient
governments utilize the poverty of its citizens to receive foreign aid and then fail to distribute
that foreign aid to those citizens, it is a form of duplicity. Therefore, governments neglect their
citizens and gain advantages from aid received in a corrupt manner. Deceitful use of foreign
assistance is neglectful to the population and contributes to corruption in foreign aid by
institutions.
Thirdly, the final factor influencing corruption of foreign aid by institutions is ignorance.
By definition, ignorance is the “lack of knowledge or information. For example: he acted in
ignorance of basic procedures’” (Oxford Dictionaries). Ignorance also involves the lack of
awareness, and/or knowledge, by individuals or groups. Henry David Thoreau once stated,
“Most men, even in the comparatively free country, through mere ignorance and mistake, are so
occupied with the factitious cares and superfluously coarse labors of life that its finer fruits
cannot by plucked by them” (Thoreaus). It is a common belief that the responsibilities of one’s
life often hinder them from appreciating the world of knowledge surrounding them. In the
developmental assistance setting, citizens funding foreign aid rarely remain informed on the use,
price, and results of aid. Furthermore, the people able to create change remain ignorant to the
corruption involved in the industry and in turn fuel the problems.
Corruption of foreign aid is of high importance within the current developmental

assistance industry through NGOs, recipient countries, and donor countries. The corruption of
these institutions has elicited severe criticism from the public and has caused minimal assistance
to be given to countries that desperately require it. Corruption by these institutions creates
changes in the principles of foreign aid and therefore deviates from foreign aid’s original
purpose. However, corruption does not result from the breaking of laws and rules but rather from
detrimental factors that create serious effects. Reliability is a factor that creates a cycle of foreign
aid with one donor country. In these relations, the donor country reaps benefits rather than
considering the development of the recipient. This neglect results in the deceitful use of foreign
aid, not in the positive and intentional development for the citizens. Ignorance by institutions and
society result in bystanders who fuel and facilitate the corruption of foreign aid. These practices
and components in the modern developmental assistance industry result in negative implications
that predominate the altruistic intentions of foreign aid. Wealth and power increases for a select
few, however, those who actually require assistance suffer.
EXPERT
In the world today, the topic of developmental assistance corruption is immensely

controversial. Research and information regarding this issue are sparse and hidden, and as a
result, awareness of this issue is relatively nonexistent throughout society. The reason for this is
because foreign aid is intended to have altruistic intentions and anything against this forms
public distaste. Discussing corruption also leads to bad publicity and eventually a loss of
funding. Therefore, research on corruption within the industry and problems is sparse and under-
discussed. Nevertheless, some individuals set the objective of spreading awareness and
information throughout the public. Ben Ramalingam is an example of such an individual. He
dedicates his research and life towards leading development and humanitarian organizations
including UN bodies, NGOs, the Red Cross movements, and government agencies. His work
addresses the corruption of foreign aid by utilizing the theory of complex adaptive systems to
improve it. He says, “I believe in sharing ideas as they emerge, see which get traction, get
feedback and trigger some debate and discussion, which is invaluable. It is challenging because it
demands you be transparent about your thinking process from the outset”. Ben Ramalingam is
clearly an important player and contributor to research in developmental assistance and
humanitarian issues.
Ramalingam is the CEO of the Humanitarian Innovation Fund, as well as a researcher at

the Institute of Developmental Studies, and advisor for the Royal Veterinary College. At the
Overseas Development Institute (ODI) in Britain, Ramalingam received a direct transfer
agreement (DTA) as an associate in developmental studies. He has an extensive history within
developmental studies and has focused on researching global development and humanitarian
issues. Ramalingam is the lead for the Digital and Technology research group at the Institute of
Development Studies and has been since September 2015. The institute is ranked number one
globally for international development research and learning. In December 2010, Ben
Ramalingam founded and became the chair of the Humanitarian Innovation Fund. This
organization aims to support other organizations and individuals to nurture, identify, and share
innovative solutions to challenges affecting humanitarian and foreign assistance. It is the first
fund dedicated to creating new ideas and approaches in the field of international disaster
response. He also contributes to the Royal Veterinary College and Institute for Development
Studies as a visiting lecturer and is a certified research associate at the Overseas Development
Institute and University of Brighton.
One of Ramalingam’s greatest achievements is his book, “Aid on the Edge of Chaos:
Rethinking International Cooperation in a Complex World” which was released in 2013. The
book addresses the controversy about whether developmental assistance is beneficial or not. He
proposes a compromise between the two standings; however, the book is revolutionary because it
applies complexity theory opposed to criticism of the aid system. Ben Ramalingam’s innovative
piece of literature offers a more effective solution to development problems.
At first glance, the books title “Aid on the Edge of Chaos” is indicative of a negative,
pessimistic view on the part of the author in regards to developmental assistance. Ramalingam
uses the scientific terms of complexity theory and refers to it throughout the book, essentially
describing and promoting systems optimally poised for change. He often utilizes the metaphor of
the Kinetic Particle Model of Matter or “the states of matter” and for each state represents a
different type of system:
‘You can have some systems that are like solids – things are pretty much fixed in place.
At the other end of the spectrum you've got systems which are like gasses, so it's
completely chaotic and random. In the middle you've got liquid systems, which can be
contained. They've got certain things that stay constant but then there's a lot of change
and flux and shift within that.
And when you apply that metaphor to societies, you can see that actually, many societies
that are undergoing change are also in a liquid state. They're not too rigid, they're not too
chaotic, they're somewhere in the middle.’ (Atiko)
With aid on the edge of chaos, an adjustment needed to be made in developmental

assistance to encourage and ease changes in developing nations. Finding a balance between
preventing complete disruption such as a gas, and immense control (like a cube) is required in
societies for developmental assistance to be beneficial.
The second aspect of the book’s title includes, “Rethinking International Cooperation in a
Complex World”, it represents the innovative ideology of relating foreign aid to the complexity
theory. The book addresses the common ideology that aid is often static, or generic, even though
it is operating in complex systems and generating the complexity theory. “Aid on the Edge of
Chaos” is unique because the content does not criticize or misrepresent this concept. Instead, it
explains and demonstrates examples utilizing complexity theory. Ramalingam often uses a recipe
analogy in his lectures. The concept divides problems into simple, complicated, or complex
issues. Simple problems are straightforward and simplistic for example: baking bread serves to
explain foreign aid concepts like distributing vaccines for measles because it is quite
straightforward. Complicated issues are explained with the construction of bridges and the
utilization of mathematics, physics, and numeracy. Putting simple problems together helps
explain the situation and makes it understandable. Finally, complex problems involve complex
issues such as HIV/AID behaviour and gender equality. The answers to these problems are not
straightforward and therefore require multiple experiments and solutions:
‘In those settings, and when those things have successfully happened, it's because people
have experimented in many different ways. They've tried lots of different things out. And
they've had a system whereby they've been able to experiment in a robust way, and see
what's successful, and scale up the things that seem to be working and leave to one side
the things that aren't.’ (Atiko)
Foreign aid is a large complex system, and each society consists of their own complex
systems. Ramalingam explains this through the analogy of gardening, instead of a machine
producing ‘ready-made’ solutions, a gardener tends soil and must adapt to a dynamic
environment. For foreign aid to be beneficial it must be malleable and adapt to each recipient
country.
Opinions of Ben Ramalingam are scarce and mostly related to his book “Aid on the Edge
of Chaos”. Multiple reporters from the World Bank (such as Duncan Green) and Oxford
University Press addressed the fact, a book on complexity had a rather linear writing structure,
beginning with problems of foreign aid, to what is complexity, and concluding with ‘so what’ –
the final chapters on Ramalingam’s foreign aid solutions and reforms.The first section of the
book is devoted to portraying a critical perspective of the current foreign aid industry. Blog
reporter Duncan Green writes for the World Bank’s blog, Oxfam Blogs, and Britain’s The
Guardian. Moreover, he believes that this section exists to deter critical aid workers. The second
section of the literature has a high concentration of material including multiple in-depth case
studies, agent-based modeling, the edge of chaos, fitness landscapes, network theory, power
laws, and sandpile thinking. The third and final section of the book is illustrative of the quotation
by the author, “We in the aid should move from being people who know the answers to people
who know what questions to ask” (Green). Therefore, though Ben Ramalingam’s book “Aid on
the Edge of Chaos” is highly criticized, it contributes innovative ideologies and solution to the
developmental assistance industry. Based on the quality of his previous work it would not be
erroneous to assume that he will produce more quality literature in the future.
EXPERT BIBLIOGRAPHY
Atiko, Joan. Tackling the complex problem of aid: an interview with Ben Ramalingam. 12
October 2015. Web. 20 May 2016. <http://www.dw.com/en/tackling-the-complex-
problem-of-aid-an-interview-with-ben-ramalingam/a-18776145>.
Green, Duncan. Aid on the Edge of Chaos, A Book You Really Need to Read and Think About. 11
November 2013. Web. 20 May 2016. <http://blogs.worldbank.org/publicsphere/aid-edge-
chaos-book-you-really-need-read-and-think-about>.
Maxwell, Simon. Review of Aid on the Edge of Chaos. 30 March 2014. Web. 20 May 2016.
<http://www.simonmaxwell.eu/blog/review-of-aid-on-the-edge-of-chaos-by-ben-
ramalingam.html>.
Paulo, Sebastian and Heiner Janus. Aid on the edge of chaos - review. 24 December 2013. Web.
20 May 2016. <http://www.theguardian.com/global-development-professionals-
network/2013/dec/24/book-review-aid-edge-of-chaos>.
Ramalingam, Ben. Ben Ramalingam. 2016. Web. 21 May 2016.
<https://www.linkedin.com/in/ben-ramalingam-
14523940?authType=name&authToken=TOko>.
—. The Haiti catastrophe: Lessons learned from previous operations. 19 January 2010. Web. 20
May 2016. <https://www.odi.org/comment/4702-haiti-catastrophe-lessons-learned-
previous-operations>.
ROLE OF CONTROL
The developmental assistance industry relies on the supply of funds from developed
nations, international organizations, and non-government organizations. Yet the main
contributors are the governments of developed nations. The industry bases their decisions on the
assessments of recipient governments requesting aid. Furthermore, the country’s Department of
International Development or something similar is the organization administering foreign aid
programs in developing countries. Therefore, the department dictates the state’s international
development strategy. These agencies are under the influence of the Minister of Foreign Affairs,
where political goals influence the distribution of foreign aid. For example, liberal democrats
view foreign aid as a moral obligation. However, Conservatives prefer the act as a means of
preventing recipients from becoming hosts for extremists. The group that has the largest role of
control in the corruption of developmental assistance is the governments who distribute foreign
aid and create developmental strategies. Donor government institutions are essentially the heart
of the developmental assistance industry. However, their obligations sometimes contradict the
views of citizens and the basis of altruism. When foreign aid is corrupt, the objective is to create
benefits by tying aid, loaning aid, and seeking advantages from the transactions, and this is
detrimental to the main principles of the developmental assistance industry.
Non-governmental organizations (NGOs) are citizen-based groups that operate

independently from governments. These groups can be formed on a local, national, or
international level and despite their independence may receive large funding from government
bodies. In the foreign assistance industry, many government’s fund NGOs to disperse aid to
countries in need. Moreover, NGOs have a significant role of control in the management of
governmental funds, in turn significantly impacting the foreign assistance industry. Based on a
survey by Transparency International, in countries such as Sudan, South Sudan, and Lebanon,
citizens often “view NGOs and religious bodies as the most corrupt institutions” (Ravelo).
Citizens view these organizations as ineffective due to their inability to solve problems and the
cycle of poverty. Within NGOs cases of misappropriated funds, inequality in the distribution of
aid, and sexual abuse of beneficiaries are different situations some NGOs face. The institutions
are not corrupt but face corruption within their organizations. Therefore, this demonstrates the
role of control and importance NGOs have in the developmental assistance industry.
Ultimately, the present role of control in the developmental assistance industry

sometimes contributes to the corruption of foreign aid and results in negative implications for
citizens in developing countries and/or governments. Power in the form of finance is controlled
by the donor country governments and non-governmental organizations. This in turn allows for
the influence of political views to eradicate the original and beneficial intent of foreign
assistance. Though these institutions do not always contribute to a deviation in funding, the
control they have, allow for the possibility. For example, an NGO may not plan to have
inequality in the distribution of funds but an employee may abuse their power independently.
The role of control of these two institutions allow for the abuse of power, yet, their control does
do much good for other peoples as well. Consequently, corrupt governments receive large
amounts of foreign aid. In fact, “the United States, in contrast, stands out for giving more aid to
more corrupt governments” (Alesina and Weder). In addition, donor governments trap recipients
in the cycle of tied and loaned aid. Corruption of foreign aid fuels dependency, funds corrupt
regimes and contributes to a lack of development in countries. Yet because of the controversy
behind the topic, the majority of citizens remain ignorant to its prevalence. Independent
researchers and educators on international development, such as Ben Ramalingam, produce
writings and lectures to spread knowledge of the issues and possible beneficial approaches. The
global awareness of the issue is minuscule, and progression towards improving foreign aid is
slow; therefore, knowledge about the topic needs to become more widely accessible before
improvement can occur more efficiently.
LOGIC OF EVIL
When considering the topic of corruption in foreign aid, it is important to differentiate the
very different roles of the country that is providing the foreign aid and the country receiving the
aid. Aid creates an imbalance when no proper focus and consideration is given to the recipient
country, and foreign assistance creates a distinction between the role of superiority and minority
of the institutions involved. In such relations in the developmental assistance industry, donor
countries supply financial aid to the recipient country. Loans and tied aid are often provided and
do not always contribute to improvement within the developing country. The superior country
controls this funding and leaves the recipient without any options or autonomy. In addition, the
tied aid ensures investment into the donor’s economy, yet weakens the economy of the recipient.
For example, to use the tied aid for construction materials must be bought from the donor
country. Therefore, shipping and other expenses are required instead of getting cheaper/closer
materials or investing the funds into the recipient’s economy through native construction
methods. Though dependency and poverty grow within recipient countries, the superior donor
country justifies it as tied aid and loans from which it benefits.
The role of the developmental assistance industry is very important on the global and
national scale. It reflects the power and economy of a nation as a result of how much aid can be
distributed to helping other countries. Politicians wishing to increase in popularity promote their
developmental assistance industry to assert their morals and “priorities.” For example, “Money
invested by the UK Government abroad was found to be actively encouraging corrupt practices
… the finding will fuel criticism from Conservative MPs of David Cameron's decision to commit
0.7 percent of the UK's gross national income to foreign aid spending” (Riley-Smith). Foreign
aid is often used as a campaign strategy such as the one employed by David Cameron. The
objective to reach the 0.7% was a goal to benefit the view of the UK and lacked the main intent
of helping those in need. By reaching the 0.7% goal set by the UN Millennium Project, the UK
was viewed more impressively compared to other rich countries who had not. Government and
politicians often utilize foreign aid for selfish means (such as political standing) instead of solely
developmental improvement. Foreign aid has the intent of helping others, yet, when approached
in an inept manner it can sometimes become corrupt.
When foreign aid is corrupt, the benefits intended for people in need are deviated to serve
other reasons. Corrupt foreign aid in some scenarios benefits the donor country, for example
paying high wages for administrative costs and tying aid to the donor country. Foreign aid has
the main purpose of getting to those in need, however, on occasion donor governments direct aid
to corrupt regimes. States such as Iraq, Egypt, and Afghanistan abuse their foreign assistance
before it can reach the citizens. Donor governments often choose these countries to gain political
standings within the developing nations, however, it should not be “the amount of money that …
is sent abroad that should make taxpayers seethe, but to whom it is distributed” (Glain). The aid
that is distributed is corrupt because a large amount is not received by the citizens. Humanitarian
aid which includes developing lasting improvements and developmental plans is a safer more
effective approach to direct bilateral aid. Moreover, NGOs sometimes contribute to corrupt aid
and evil due to the fact, misappropriation of funds, inequality, and abuse is sometimes present.
Having so much power, money, and possibilities allows for the abuse of power of employees,
institutions, and others and this contributes to the logic of evil in the developmental assistance
industry.
Ultimately, institutions utilize tied and loaned aid to benefit from the transaction between
the superior country and country with less power in developmental assistance. The superior party
depicts it as supporting the lesser, however, reaps benefits and leaves the recipient dependent and
with little improvement. These benefits include the purchase of goods and services from donor
countries, as well as political influence on the recipients. In addition, government institutions
utilize aid for the selfish intention of depicting their society as altruistic when insufficient
research is completed to ensure aid is beneficial. Representing actions as beneficial to minority
countries that have no power while simultaneously gaining benefits from such transactions is
deplorable. Moreover, these actions can further problems for the minority country such as debt
and poverty. Assistance to these countries require altruistic intentions and are only beneficial
with the aim and consideration to develop and improve recipient countries in the long and short
term.
CASE STUDIES
CASE STUDY I – AFGHANISTAN
Over the last three decades, Afghanistan is ranked 175 of 187 countries in the United
Nations Programme's Human Development Index; the index assesses the development of a
country emphasizing human rights and choices. Afghanistan’s low score demonstrates that it is
included in the world's 15 least developed countries. Lack of basic services, including education
and health care, has contributed to Afghanistan’s challenges in development. The improvement
of Afghanistan has become an objective of multiple developed countries around the world, such
as: Canada, the United Kingdom, and the United States. Restoring the damage in Afghanistan
from the Civil War, communism, and attacks by the Taliban is an international initiative. Though
the United States’ longest war (within Afghanistan) officially ended on December 28th, 2014,
NATO troops are still present in the region and attacks remain prevalent.
Afghanistan officially referred to as the “Islamic Republic of Afghanistan”, is currently a

sovereign state. It is located where the Iranian Plateau borders with the mountainous regions of
Central Asia, and therefore connects it to the cultures of the Middle East and other parts of Asia.
The country shares numerous borders including Turkmenistan, Uzbekistan, Tajikistan, China,
Pakistan, and Iran. The country is geographically defined as South Asia, however, is commonly
considered Middle Eastern in political discussions. The region is the forty-first largest in the
world, and the capital of Kabul is over 3,500 years old, and has been controlled by multiple
empires throughout its history. The population of Afghanistan is approximately 31.6 million
people. Afghanistan is a member of the United Nations and receives more foreign aid from the
European Union and Member states than any other country. In April 1978, communists seized
power in the country and held it until 1990, when the official Islamic state was created.
Afghanistan is a low-income economy and most jobs are in service, manufacturing, and
agricultural industries.
The Soviet invasion of Afghanistan occurred in late December 1979 in support of the
Afghanistan communist government against the anti-communist population and devoted
Muslims. Before the invasion in April 1978, the Afghanistan government was overthrown and
formed a new government with little support, which eradicated public protests, and forged close
relations with the Soviet Union. This resulted in uprisings against the new government and led to
internal conflicts that provoked the Soviet Union’s intervention on December 24, 1979. By
reforming the government, the Soviet Union aimed to guide the state towards the development of
communism. Foreign intervention and military aid fuelled a proxy-war within the country that
lasted approximately 15 years. The objectives of these investments were to assist in spreading
ideologies of developed countries. Yet, the war did not end until 1992 and only then did the
altruistic intentions of foreign aid and developmental assistance prevail within the region.
Corrupt use of foreign assistance involves contributing aid for intentions other than the beneficial
development of the recipient country. The military aid provided by the Soviet Union and the
United States in the Afghanistan War did not seek such intentions, and this resulted in the
destruction of the State.
An abundance of foreign aid has been granted to Afghanistan since the beginning of the
twenty-first century, as a result of the conflicts following the Soviet Invasion in 1979.
The remains of the war have rendered the nation’s political institutions, economy, and
society fragile, and transformed Afghanistan into a battlefield for factional rivalries and a
breeding ground for religious fundamentalism. As a rooted historical understanding of the
war is necessary to contextualize the struggles from the region that dominate our
contemporary international affairs … the USSR invaded foreign nations in the name of
socialist internationalism, prestige and with the objective to thwart their Western enemies
(Mehra).
Afghanistan was left as one of the poorest countries in the world. Even after the war, nations
such as the United States decided to contribute foreign aid to influence and ensure communism
would not return; therefore, they had their own intentions separate from benefitting the recipient
country during the transaction. Since 2002, the United States has spent approximately $100
billion assisting Afghanistan. Yet, the institutions and services brought about have not remained
effective or productive because the state of the country is not improving. Societies such as
Canada is contributing $227 million, Australia is contributing $78.5 million, and the United
States is contributing $1.3 billion to Afghanistan in 2017. However, the lack of results are
inexcusable and demonstrative of the flaws and corruption within the developmental assistance
industry that affects Afghanistan. Afghanistan is one of the countries receiving the most foreign
aid nationally, yet has 36% of the country living below the national poverty line (about nine
million citizens). In fact, the primary cause of fatality within Afghanistan is poverty instead of
armed conflict. On the topic of armed conflict, the Taliban, an Islamic fundamentalist group, is
the main factor continuing war within the country even though millions in military aid was
provided. Therefore these two example demonstrates a lack of assistance towards the true
intentions of helping the citizens and instead most of the reasoning is to create political
connections and other unaltruisitic reasons.
The purpose of developmental assistance is to improve the situation in a country such as

Afghanistan. However, in multiple situations regarding Afghanistan, portions of developmental
assistance have neglected to improve the poverty within the state. Based on a report by the
FiscalTimes, an English digital news and news analysis publication based in New York City and
Washington DC, it is “unclear what benefits the U.S. received as a result of TFBSO’s decision to
rent private housing and hire private security contractors” (Dent). The Task Force for Business
and Stability Operations (TFBSO) is mentioned choosing unnecessarily expensive uses of
foreign aid to produce external residences in Afghanistan. The author of the reports, John F.
Sopko, the Special Inspector General for Afghanistan Reconstruction, illustrates corrupt
spending of foreign aid. For example: raising the price of gas station construction plans, in turn,
raises the direct costs of overhead pricing. The use of foreign aid in Afghanistan towards
unnecessarily expensive expenses is corrupt because it wastes money on unbeneficial actions
compared to improving the state of the country.
Peter Bergen, a Senior fellow at the New America Foundation, and Ann Jones an
American aid worker testified in an Atlantic Free Press report (political reporting website) about
the deplorable deviating intentions of foreign aid in Afghanistan. Major organizations such as the
U.S. Agency for International Development (USAID) hire United State contractors instead of
those in the Afghan ministry. Therefore, US contractors are receiving the benefits of high wages
compared to filtering the funds into Afghanistan’s economy. In 2015 one of the USAID’s main
contractors Arlington Va.’s International Relief and Development (IRD), a non-profit
organization, was shut down by the USAID due to a failed inspection. The review reveals the
organization demonstrated, “serious misconduct in IRD’s performance, management, internal
controls and present responsibility” (Latifi). Not only does the US benefit from keeping their
funds in their economy, the contractors hired sometimes abuse the power they are given. Some
individuals have the intentions of receiving high wages instead of benefitting Afghanistan
compared to native contractures with the wish of improving their own country. Therefore, the
possibility to deviate from the purpose of supporting Afghanistan leads to occasional corruption
within foreign aid.
Matthew J. Nasuti, a former U.S. State Department Official, and U.S. Air Force Captain,
claims aid money funds the contractors’ executive salaries, inflates salaries for foreigners
working in Afghanistan, and buys supplies from India and Turkey due to the low prices, and with
technical advisors who work in the United States. Each aspect serves to benefit the organization
delivering aid, instead of benefitting Afghanistan. Aside from excessive administrative costs, and
extensive transaction costs, ineffective technical co-operation is a common flaw in foreign aid to
Afghanistan. Organizations advertise quick impact projects to create schools, roads, and clinics.
Afghan-American journalist, Fariba Nawa, visited a clinic in Qalai Qazi, Afghanistan in 2015.
She observed, “This ‘model’ clinic was falling apart: The ceiling had rotted away in patches; the
plumbing, when it worked, leaked and shuddered; the chimney, made of flimsy metal, threatened
to set the roof on fire; the sinks had no running water; and the place smelled of sewage” (October
2015). Foreign aid organizations rely heavily on independent contractors for the development of
technical co-operation, yet, the monitoring of the progression is not consistent and eventually
falters. This lack of quality control leads to rapid solutions being implemented that are not
always effective. Moreover, with $12.9 billion in aid going to Afghanistan, it seems to often
benefit the organization’s country and status by quickly impacting the project more than the
recipient country.
Corruption of humanitarian aid was present in the United States USAID programs when
they regularly abandoned projects to support independent and private organizations. For example
in 2013 regarding the Kajaki Dam:
Now that Marines and Afghan soldiers have seized the dam and the surrounding areas,
USAID has decided not to complete the most critical part of the $266 million project.
Instead, the agency intends to hand over to the Afghan government the challenging task
of installing a large hydropower turbine. (Chandrasekaran)
Not only did fifty million American troops die in attempts to claim the territory from the Taliban,
the project was left incomplete. The immense number of funds and plans were then suddenly left
upon the Afghan government. Thus, the most purpose of the act was to support Afghanistan’s
second largest city in generating electricity, however, the support became corrupt as Afghanistan
is left with the mess and facing the most critical part of the project alone. Abandoning projects
and poor maintenance of others is an example of the corrupt foreign aid the USAID sometimes
produces.
In addition, projects constructed from developmental assistance are constantly destroyed

by the Taliban, and official records showing what Afghanistan requires in terms of aid are often
falsified. For example, government officials record trailers and non-motorized vehicles (e.g.
bicycles) as transportation requiring fuel supplied by the United States. This illustrates
corruption where monetary aid is asked for but not used for its intended purpose. The ‘enemy’
known as corruption, therefore, becomes stronger and affects the strength of society and its
development. Development is hindered because the transfer of assistance from the donor country
to the foreign country is flawed.
CASE STUDIES
CASE STUDY II – NIGERIA
Nigeria, officially referred to as the “Federal Republic of Nigeria” is currently a secular

democratic country. It is located in Western Africa and borders Benin, Chad, Cameroon, Niger,
and the Gulf of Guinea. The region is divided into thirty-six states, and of them, the capital of
Abuja experiences an annual growth rate of about 35%. The population of Nigeria is
approximately 173.6 million and it is therefore classified as the ‘Giant of Africa’ due to this
value and its large economy. Nigeria is a member of the United Nations, and its strong economy
originates from large manufacturing and agricultural sectors, as well as its rich abundance of
natural resources. However, healthcare, education, and general living conditions in Nigeria are
severely poor and thus pose a risk to the advancing nation. Despite being the third largest
economy in Africa, Nigeria holds a rank of 160 out of 177 countries on the Human Development
Index.
As previously mentioned, Nigeria is a growing economy and there are opportunities to

tap into crude oil reserves and natural gas so the country has been viewed favorably. Despite the
abundance of natural resources available to be harvested fifty-three percent of the 178,516,904
citizens are at or below the poverty line. With citizens living on merely one dollar a day, many
people question how the $2,529,480,000 of official development assistance the country received
in 2013 has been used; as well as the $400 billion collected since the gaining of independence in
1960. The discrepancy between funds donated and the poverty line is thus related to the
corruption involved in Nigerian society and government, as well as the specific corruption of aid.
Instances have been reported in which parents bribe teachers for favourable grades on their
children’s exam papers, and authoritarian figures such as the police have been accused of
exploiting their abilities. Corruption and poverty within Nigeria is leading the country towards
worse conditions, and the developmental assistance intended to support this situation simply
expedites the issue.
In recent years, it has become apparent that the vast revenue from the mining of
petroleum has resulted in the Nigerian government neglecting to rely on taxpayers for income.
Professor Gbadebo Olusegun from the department of economics and development at Covenant
Univerity, Nigeria researched the petroleum statistics in his article Crude Oil and the Nigerian
Economic Performance. In 2007 petroleum accounted for about 70% of the nation's gross
domestic product (GDP) and in 2009 the value increased to 85%. According to the World Bank,
in 2008 the tax revenue in Nigeria was 5.46% of GDP and in 2012 it was 1.56%. These statistics
demonstrates the increase in reliance on petroleum production compared to the taxes of the
citizens. Moreover, the government no longer needs its citizen’s funds so it has neglected to care
for its people. This has fuelled corruption and poverty in the society due to a lack of investment
and development on the part of the government. Improving standards for citizens is never
discussed because the people’s requirements are considered insignificant. For example,
according to the World Bank, since 2006 the gross enrollment has dropped from 102% to 82.4%
in 2010. Therefore, though more Nigeria has received a significant amount of financial aid,
improving education and enrollment is still not a priority. As part of a United Nation’s initiative
countries like Britain are fuelling large amounts of foreign aid to reach 0.7 percent of the gross
national income. As a result, Nigeria has gained immense amounts of bilateral aid. According to
the World Bank Nigeria’s foreign assistance income has consistently increased since 2001 to
2014 where they received 2.5 billion USD. There was also a spike in 2006 when they received
11.6 billion USD. In turn, citizens have been urged by organizations in the country to pay bribes
to government officials or to forge documents to receive aid and funding. According to the
University of Nebraska, the explanation for bribery in Nigeria is “Low wages in civil service.
When public wages are low, public servants may be compelled to use their official positions to
collect bribes as a way of making ends meet, particularly when the chances of being caught are
low” (Ayobami). With the government receiving the majority of its income from foreign
assistance, and the needs of citizens not being the top priority, citizens are left with low wages.
This results in bribery in civil services, administrative positions, in addition to receiving aid. The
fact that citizens result to bribing to “make ends meet” illustrates the control and abuse with
which the government utilizes the assistance. From the very beginning, the intentions of
improving poverty in Nigeria through the developmental assistance industry has faced
corruption. Bribery, control, and corruption dictate where foreign aid has been contributed in
Nigeria.
Similar to multiple other African states, a lack of development and corruption is being
fuelled by prebendalism in Nigeria. Dr. Wale Adebanwi a professor at the University of
California with a Ph.D. in Political Science and a Ph.D. in Social Anthropology, and Dr.
Ebenezer Obadare a professor at the University of Kansas with a Ph.D., from the London School
of Economics, have led a discussion on Nigerian politics, the economy, and society. A
conference held in Lagos 2011, included international scholars and was entitled, “Democracy
and Prebendal Politics in Nigeria: Critical reinterpretations.” In 2013, an edited volume of papers
was published on the subject and one commentator, Nicolas van de Walle, stated, that the
document was, “… reading to anyone who wish[ed] to understand why a country with so much
potential remain[ed] mired in poverty” (R. Joseph). Prebendalism is the use of government funds
to fulfill an individual or group of individuals own views and ideologies. Therefore, the
discussion of prebendalism has been on the rise and has addressed the issue of Nigeria’s
prosperous economy having a society entrenched in poverty.
Following the Lago conference in 2011, multiple commentaries spread amongst Nigerian
online media. Prebendalism gained popularity continuously and the definition continuously
developed:
Occupants of public office at all levels in the second republic felt that their positions
entitled them to unbridled access to public resources with which they not only satisfied
their own material needs but also serviced the needs or wants of subaltern clients… This
kind of criminal diversion of public resources for selfish private ends starved the polity of
funds for development, increased poverty and inequality, and intensified an unhealthy
rivalry and competition for public office that triggered pervasive instability… (R.
Joseph).
Therefore, prebendalism refers to members of political institutions believing in the right to utilize
government revenues for one’s own views and intentions, as well as a form of repayment due to
support. For example, in the Nigerian government, “Dictators [of Nigeria] Ibrahim Babangida
and Sani Abacha are responsible for the disappearance of over US$5 billion into the ranks of
their supporters” (State Master Editors). These actions result in the diversion of public resources
and more specifically developmental assistance. Prebendalism essentially justifies the misuse of
foreign aid due to the fact that those in power believe they have the right to misappropriate funds
for their own intent and purposes. This again proves how developmental assistance is not being
utilized for its intended purpose. Prebendalism’s prominence in Nigeria prevents not only
effective developmental assistance but also affects the nation's ability to become an effective
democratic state.
CASE STUDIES
CASE STUDY III – HAITI
Haiti, officially known as the “Republic of Haiti” is currently a sovereign state. It is

located on the island of Hispaniola, the second largest island in the Caribbean. Moreover,
Hispaniola is divided into two countries – Haiti and the Dominican Republic, resulting in the
sharing of only one land border. Nearby countries include Jamaica, Cuba, and the Bahamas.
Haiti is 27 750 square kilometers in size, with a population of 10.6 million people, therefore, it is
the third-most populous Carribean country. The region is the 149th largest in the world, and the
capital city is Port-au-Prince which is the most populated city in the state and acts as the main
political center and the Executive of State. Since 1945, Haiti has been a contributor and member
to the United Nations. However, beginning in 1804, Haiti has been ruled by a seemingly endless
line of dictators who have demanded extreme obedience from their citizens and wielded extreme
authority. The morality of the government’s intentions has been a topic on the rise in Haiti in
regards to improvements in economic and social conditions within the country.
On January 12, 2010, Hispaniola experienced a large-scale earthquake that impacted both
the Dominican Republic and Haiti. However, the western third of the island in Haiti received the
majority of destruction that resulted from the impact which struck fifteen miles from the capital
of Port-au-Prince. The initial shock registered a magnitude of 7.0 and caused “rupturing of the
main strand of the fault system” (Pallardy). A fault system is a crack in the Earth’s crust, and the
main strand includes the larger fault system of the Carribean Plate. Rupturing of the fault formed
the largest earthquake in Haiti since the eighteenth century. Action from the international
community spread rapidly, and provisions of aid were dispersed hastily.
The official Haitian government released reports of over 300,000 casualties, however, the
Journal, Medicine, Conflict and Survival states their estimate at 158,000. Moreover, the USAID
utilized statistic sampling on an immensely affected region of downtown Port-au-Prince and
claimed possibilities as low as 46,000. In regards to the USAID report and “the controversy it
has created, is a study in why numbers aren’t infallible facts. On the contrary, they can be
political tools. They can be emotional. And they can obscure the truth” states Maura R.
O’Connor, a graduate of Columbia’s Journalism school, and author of the Columbia Journalism
Review. Following public knowledge of the USAID report, controversy in regards to the Haitian
government’s intentions with the numbers ensued. By exploiting the emotions of donor
countries, the immense amount of casualties ensured that the international community's promises
and persistence of reconstruction were implemented and that foreign aid was received. Following
the disaster and collection of bodies in mass graves, the Haitian government released incredibly
precise statistics - ironically, from an apparent unsystematic strategy of recording the fatalities of
the citizens in the mass graves. In this situation there is a unlikeliness of accurate data, and the
goal was to evoke emotion to influence the amount of foreign aid. They evidently supplied
nations with fallible facts and exploited emotion to influence foreign aid. This results in a corrupt
use of developmental assistance, due to the fact the recipient government is aquiring aid through
deceit and the abuse of power.
Following Haiti’s earthquake in 2010, the United States became the largest contributor of
foreign assistance to the region and invested millions in aid. However, to this day the nation
remains the poorest country in the Western Hemisphere. Armed robberies, murder, kidnapping,
burglaries and attacks on vehicles illustrate the lack of development and corruption within the
country. Haiti’s current state of underdevelopment is due to the political insecurity and the
Haitian government’s lack of investment in the development of their country. American
politician Lee H. Hamilton states, “Aid can work where there is good governance, and usually
fails where governments are unable or unwilling to commit aid to improve the lives of their
people” (Hamilton). Developmental assistance to Haiti was intended to facilitate economic
development, enable disaster relief, provide public goods, and advance education and the health
sector. However, ensuring the contributions of donors are spent on the grounds is not insured. In
2013, a Haitian government audit discovered the underestimation to USAID for the prices of
settlements. During the process, due to the underestimations, plans for 15 000 houses was
decreased to 2 649, and in addition only 900 houses were completed. Estimates dropped and the
goal was not met by the recipient country. Therefore, though money was provided, insurance of
foreign assistance objectives was neglected. In Haiti, a commitment to developmental assistance
is required to improve the state of underdevelopment and without this, the benefits and intentions
of foreign aid are not utilized properly, and the nation erroneously utilizes foreign assistance.
Corruption of foreign aid in Haiti is present in the negative affect of contamination by

donor countries. Cholera is a result of the bacteria, Vibrio Cholera which causes an acute
infection of the small intestine. Symptoms of the disease include diarrhea, vomiting, and
dehydration. Without treatment dehydration can result in shock, and eventually death, in a matter
of hours. History includes six pandemics of cholera and a seventh investigation is being studied.
The sixth occurrence of the disease over the whole country occurred in 2010. Over the past
century, Cholera was unknown to Haiti and remained that way until ten months after the 2010
earthquake and influx of global assistance workers. The bacteria contaminated Artibonite which
is the largest river in the region, and from the river, the disease spread rapidly. During the
assistance of the country, Nepalese soldiers poured waste from the host United Nations
peacekeeping camp into the vast river. The result was that in 2014, Cholera affected more than
720,000 Haitians and led to 9,000 deaths. Though the United Nations denies responsibility, no
alternative explanation has been given in regards to the issue. Developmental assistance
organizations and workers have the intentions of improving Haiti, however, their actions have
been detrimental. Pouring waste into the country’s environment, as well as not ensuring
thorough health and disease examinations significantly counteracts the overall objective of
foreign assistance and the overall objective of improving the country. Not all corruption is
financial, and this is illustrative of the negative outcomes that sometimes result from corruption
within the developmental assistance industry.
INTERNATIONAL ORGANIZATIONS
Official developmental assistance is the international transfer of finance, services, and

goods contributing to the improvement of the recipient country or its citizens. Various countries
provide large sums of capital through government to government relations, however, aid is often
“Channeled through international organizations and nongovernment organizations (NGOs)”
(Williams). Intergovernmental organizations (IGOs) such as the World Bank, United Nations
Children’s Fund (UNICEF) and the International Monetary Fund contribute to the developmental
assistance industry by providing large amounts of aid to states and NGOs. Corruption, however,
is a controversial topic regarding IGOs and NGOs, and significantly affects the intentions and
results of foreign aid.
Institutions are considered intergovernmental organizations with the association of at

least three countries (ranging to 185) that are active in several states. Membership of states is
held together by a formal agreement. IGO’s are also considered international organizations,
however, for the simplicity of this paper, they will not be included in international ‘non-profit’
organizations. International non-profit organizations will be categorized as NGOs. Coalitions of
states, such as the G8 Summit, are not bound by a formal agreement and therefore are not
classified as international organizations. In addition, treaties do not institute an organization and
are commissioned as a solution for a specific problem (non-generalizable) and therefore also
cannot be considered as international organizations. International organizations have a major role
in the developmental assistance industry because they form and reflect the objectives of foreign
aid.
The Canadian International Development Agency (CIDA) is an international organization

that provides foreign aid to developing countries in partnership with other international
organizations, as well as other Canadian organizations. Their main objective is, “To support
sustainable development in order to reduce poverty and to contribute to a more secure, equitable
and prosperous world” (Massachusetts Institute of Technology). Sustainable development
requires the lack of corruption because corruption undermines democratic institutions, slows
economic development, and produces instability within the government.
Corruption has affected the CIDA within Afghanistan in 2013, Kenya in 2009, and
Zambia in 2010, etc. Because the IGO neglected to act against corruption they only contributed
towards the issue. In 2009, the CIDA and Canada’s national aid agency reported approximately
$2 million in aid being misappropriated by corrupt officials in Kenya’s Ministry of Education.
To retaliate the media relations manager of CIDA, Scott Cantin, ensured the public that Canadian
funds would be reimbursed by the government of Kenya. As of 2010, only $65,000 had been
provided by the Kenyan government, and the UK froze aid to the education ministry. In
comparison, the CIDA’s website provided no evidence of discontinuing assistance and did not
touch on the issue at all. The website instead advertised statistics of CIDA’s $94 million to
Kenya since 2004. Without appropriate action, the CIDA is on the edge of passive corruption
because although corruption is not being explicitly accepted it is also not being addressed. Lack
of public awareness from the IGO also contributes to this corruption.
The United Nations (UN), established on October 24, 1945, is the second multipurpose
intergovernmental organization initiated in the twentieth century. The institution is worldwide in
perspective and participation and includes 193 member states (Appendix IV). A program of the
United Nations’ is the United Nations Children’s Emergency Fund (UNICEF) which provides
continuous humanitarian and foreign assistance to mothers and infants in developing nations.
The organization was created on December 11, 1946, by the UN General Assembly to provide
emergency supplies to those devastated in World War 2. Since 1946, UNICEF has expanded its
mandate to include, long-term development, broadening of policy from physical to mental needs,
and improvement in the quality of life of children. However, actions of the foundation include,
“… contraceptive-distributing, abortion-performing and sterilization-providing” (Murphy) Over
the years, this IGO has experienced increased corruption of humanitarian aid and assistance.
Corruption of foreign aid has also been found within UNICEF. For example, they have
acted against their mandate as well as indirectly fuelled terrorist organizations with foreign aid.
In September 2002, the Anti-Defamation League reported Palestinian children received
‘education in terror’ by the Palestinian authority, in addition to Hamas and Islamic Jihad, two
fundamentalist organizations. These groups of people have been labeled terrorist organizations
by Canada, United States, European Union and multiple other nations. According to the reports,
the United Nations Children’s Emergency Funds invested in numerous camps. Israel National
News mentioned that the summer camp posters included a Palestinian flag and tree holding a
rifle. Multiple Israeli reports have also emphasized the concern of the camps due to the fact they
target Israel. Yet, the source may be biased due to the media being an Israeli news source.
Articles highlighted the fact that camps were funded by, “UNICEF, an organization that has
traditionally sought to improve the welfare of children. Therefore, it is imperative that UNICEF
scrutinize the camps it sponsors and immediately withdraw funding from those whose only
service is to provide an education in terror” (Anti-Defamation League). However, the Anti-
Defamation League is an International Jewish NGO and therefore, they have a biased opinion
due to the fact the Palestine and Israel have a long lasting conflict. UNICEF mandate explicitly
commits to the protection of the disadvantaged children, such as victims of war, disaster, and “all
forms of violence”. Therefore, UNICEF’s ignorance in the dispersion of finances indirectly
funds terrorist ideologies and goes against the intentions of their mandate. NGO awareness of
investments within the developmental aid industry is imperative to ensure that the contribution
has beneficial intentions for the recipient country. Yet, it is also important to note any bias and
exaggerations by the news mediums is a form of corruption on its own, as it negatively affects
foreign aid. Creating a negative perspective of foreign aid goes against the intentions of helping
the recipient country and is, therefore, a corrupt action.
The intergovernmental organization, the United Nations, was reported to have distributed
harmful poliomyelitis vaccines in Nigeria during 2004. Nigerian scientist, Dr. Haruna Kaita
states, “Some of the things we discovered in the vaccines are harmful, toxic, some have direct
effects on the human reproductive system” (Watts). The Nigerian laboratory team tested the
vaccine and discovered toxic contaminants, resulting in negative implications upon the
reproductive system. With fear of overpopulation on the rise, Nigerians were concerned with the
possibilities of limiting population growth within the region. Dr. Kaiti and other scientists
involved, claimed researchers attempted bribes to pass off the contaminate as harmless.
Following the proposal of the issue, the Nigerian lab proposed running joint tests, however,
UNICEF declined. Tests were once again run separately, and UNICEF found no traces, while Dr.
Kaiti once again found contaminants. Though this controversial problem occurred in 2004, no
sign of infant mortality rate increasing occurred since then, however, the birth rate has seen a
continuous decrease according to the World Bank. Therefore, though no effects have been
noticed yet, the fear of the problem as well as other factors such as poverty, may have
contributed to the decreasing birthrate. Essentially, “Corruption is the enemy of development,

and of good governance. [Moreover,] stability and success … rests on social harmony and
responsible behaviour” (Patil). Despite vaccines gradually becoming welcomed back into
Nigerian society, the corrupt view of non-government NGOs significantly halted the
development within the state. Social harmony and cooperation by both institutions would have
resulted in stability within Nigerian society. However, citizens and politicians severely opposed
the utilization of vaccines, which resulted in tetanus spreading rapidly and more drastically. The
corruption of one NGO brought about uncertainty amongst an already fragile society. Therefore,
corruption acted as an ‘enemy’ of the developmental intentions. The corruption of NGOs results
in the impairing of societies and more specifically, it results when NGOs distribute aid directly to
foreign nations.
Non-government organizations (NGOs) include any non-profit, voluntary citizens’ group

that is focused and driven by people with a common interest. Such organizations are established
independently from government influence. However, many choose to receive funding from
governments. The institutions are categorized on local, national, and international scales and
contribute to multiple humanitarian objectives. They also bring forth the concerns of citizens to
governments and support and monitor policies and political participation by providing
information. The Executive Committee of Non-Governmental Organizations associated with the
United Nations Department of Public Information states NGOs provide, “… analysis and
expertise, which serve as early warning mechanisms and help monitor and implement
international agreements” (EXECOM). Therefore, though IGOs create and reflect on objectives
of NGOs, non-government organizations act as mediators between the situations within countries
and the larger institutions; essentially, they monitor the country and serve as “early warning
mechanisms.” Non-government organizations, therefore, have a significant role in the
developmental assistance industry and leave a widespread area for corruption to occur.
The widespread potential for corruption in the foreign aid industry is expanding with the
growing level of funds channeled through non-government organizations. However, corruption
remains a highly controversial topic and the majority of NGOs refuse to openly discuss it.
Médecins du Monde conducted a survey of seventeen NGOs in 2008 to observe the behaviour of
NGOs in regards to the corruption:
The survey asks them about their perception of corruption phenomena, how they felt the
land and risk situations and measures taken to minimize and prevent these risks.
Surprisingly but translating the taboo nature of this issue, 65% of NGOs contacted
refused to participate in this survey strictly anonymous. NGOs participating accepted
recognized in 75% of cases that corruption was one of the major operational issues of
humanitarian aid, and that emergencies such as the tsunami in 2004, were particularly
exhibiting situations. (Larché) [Translated from French]
The attitudes of the non-government organizations demonstrate the general lack of transparency
and publicity within the developmental assistance industry. In addition, a survey from the
professional service company KPMG found that 77% of all fraud investigations (in
Northern/Canadian newspaper companies) never advance to the public. Therefore, the
controversy of non-government organizations results in a lack of transparency by NGOs, as well
as deters the media from reporting on issues.
The developmental assistance industry has undergone multiple improvements with

insights from Transparency International, an international non-governmental organization.
Originating from Berlin, Germany, the organization is, “… leading the fight against corruption.
It brings people together in a powerful worldwide coalition to end the devastating impact of
corruption on men, women, and children around the world. TI's mission is to create change
towards a world free of corruption” (Transparency Maldives). The institution involves ‘chapters’
or independent NGOs that devote attention and discuss corruption within their respective
countries. Over 100 locally developed and independent chapters are situated internationally and
are depicted in Appendix III. Independent NGOs ensure political views do not influence the
organization, and they also prevent influence from outside institutions and states because they
are not locally developed. Transparency International’s regular surveys of global corruption yield
insightful information on the corruption of the developmental assistance industry.
Transparency International’s regular Corruption Perceptions Index (Survey) is based on

114,000 peoples in 107 countries and their views on corruption in their home nations. The survey
findings illustrate:
“Bribery is widespread”, “public institutions [such as the police and the judiciary]
entrusted to protect people suffer the worst levels of bribery,” “the democratic pillars of
societies [i.e., political parties] are viewed as the most corrupt,” and “powerful groups
rather than the public good are judged to be driving government actions. (Cohen)
Few readers were surprised with the findings on corruption, however, significant information
was gathered from countries where NGOs were viewed as corrupt. TI’s survey evaluates the
population’s rating of NGO corruption. On a scale of one to five, countries such as Sudan, South
Sudan, Lebanon and Serbia had scores ranging from 3.7 to 4.0. On the scale, one is the least
corrupt and 5 is the highest, thus, these countries have relatively high perceptions of NGO
corruption. This is explainable because NGOs were linked to governments with political
agendas. The ineffectiveness of governments in the developmental assistance industry has
therefore lead to NGOs being perceived as corrupt. NGOs function in states receiving immense
amounts of foreign aid and facing various societal and economic challenges. In such situations,
their effectiveness and reputation are largely dependent on the political dynamics of the recipient
nation. Therefore, success in determining unbiased reliable data has been provided by the
international non-government organization Transparency International. Their intentions are
transparent because their statistics and data have been gathered to aid in the improvement of the
developmental assistance industry.
Foreign aid creates the initiative to benefit or improve the standing of a country, however,
government funds are often diverted towards other costs before they reach the recipients. In a
report by the NGO ActionAid International, it was found that two-thirds of donor money is
classified as phantom aid. This institution states, “Real aid is calculated at just 39 per cent of
total official development assistance” (Carey). Phantom aid composes the remaining sixty-one
percent, including ineffective technical cooperation, debt relief, excessive transactions costs, tied
aid, and excessive administrative costs. Funding from the foreign aid industry contributes to
aspects unrelated to the development and growth of the nation, essentially, official
developmental assistance or ‘real aid’.
The Organization for Economic Co-operation and Development (OECD) is an institution

promoting policies to, “improve the economic and social well-being of people around the world”
(OECD). The OECD is an NGO including thirty-four countries with a strong economic basis
such as the United States, Canada, and Japan. Since OECD’s foundation, official development
assistance has been a principle mission that promotes economic and social development in non-
member countries of the organization. However, debt relief of the recipient government,
transaction costs, tied/loaned aid, administration wages, and ineffective technical services do not
produce benefits or improvement. ActionAid International presents the aspects of official

developmental assistance diverted away from the intentions of the developmental assistance
industry, and explains how the phantom aid is being corrupted and used by government funding.
CANADIAN CONNECTIONS
Canada is a constitutional monarchy and federal parliamentary democracy located in the

Northern region of North America. It includes ten provinces and three territories. The country
covers 9.98 million square kilometers and is, therefore, the second-largest country in terms of
total area. However, the nation is ranked thirty-seven of 196 countries with a total population of
35.16 million (2013). The state is solely bordered by the United States, and four-fifths of the
population lives near the divide. Canada’s peacekeeping role in the twentieth century has created
a general opinion about Canadian initiatives throughout history. Though the nation is ranked
within the top ten in the current Corruption Perceptions Index (higher numbers are less corrupt),
Canada is, “at the bottom of the bribery-fighting rankings, in the category of countries with little
or no enforcement of anti-bribery measures” (Universidad de Jaen). Therefore, though Canada
has the least perceived levels of corruption, in actuality Canada is a contributor to less apparent
corruption such as bribery and corruption of foreign aid.
Canada is present in the developmental assistance industry as a donor country

participating in the international transfer of finance, goods, and humanitarian aid. Foreign aid
distributed by Canada has generally increased over the years from $2.969 billion in 2001 to
$4.898 billion in 2014. However, the objectives by different governments have caused
fluctuations in foreign aid instead of a steady rise (Appendix V). The Liberal Party of Canada
held a majority government in 2001 until 2004. Prime Minister Paul Martin was forced to form a
minority government in 2004 due to the poor results in votes. In regards to foreign aid, a six
percent drop was witnessed from the previous year’s $3.526 billion. The Liberal Party’s mission
to provide, “Help for the world’s poor,” (The Liberal Party of Canada) resulted in an exponential
spike in foreign aid to catch up and maintain voter support the following year. Developmental
assistance continued to receive a slight increase one year later, transitioning Canada’s history
into the government by the Conservative Party of Canada and Stephen Harper.
The Conservative Party of Canada (CPC) was led by Prime Minister Stephen Harper in
2006 and held a minority government. The party was formed from the Alliance Party and the
historic Progressive Conservative Party, and transitioned Canada into the new Conservative
government that would remain in power for about 9 years. No mission statement was given by
the official CPC website, however, the Ottawa Centre Association indirectly refers to
developmental assistance as being based on Canada’s strategic interests. Essentially, aid was
supposedly allocated for the interests and benefits of Canada. By 2008 foreign aid was tapering
off from the steady increase and dropped two percent in 2008. The drop was in conjunction to
the CPC being re- elected as a minority government. In the same year, Foreign Affairs Minister
Maxime Bernier was forced to resign after extreme criticism by the public due to leaving
sensitive government documents at Julie Couillard’s home, his girlfriend at the time who was
also romantically involved with Hells Angels members. Foreign aid had plateaued, yet the war in
Afghanistan continued disastrously.
Neglect of foreign aid by the CPC minority government lead to another exponential rise
of twenty percent in developmental assistance for 2009. Canada contributed foreign aid to
Afghanistan in regards to the war conflicts, and to Haiti to strengthen democratic
institutions/stop riots. Ultimately, Canada again saw a plateau in foreign assistance during the
following years even though Haiti faced disastrous effects from the 2010 earthquake. In addition
to the ongoing conflict in Afghanistan, Canada foreign aid dropped fourteen percent gradually
over 4 years reaching below 2009’s spike in 2014 with $4.898 billion. Canada’s statistics for
contributions of developmental assistance is immensely related to trends of changing
governments. Over the course of thirteen years, foreign aid plateaus, begins decreasing leading
up to an election, and spikes instantaneously the year after. Therefore, foreign aid seems to be
neglected following an election and budgeted significantly the year after to fulfill campaign
promises. Developmental assistance in Canada rarely followed worldwide events and it instead
seems to be enacted in order to gain political advantage. In order to win votes, influence
campaigns, and maintain public support political parties manipulate funds.
The Canadian government’s focus on domestic politics has led to a failure to fulfill the
United Nations Millennium Project commitments. The Millennium agreement refers to the
repeated commitment of 0.7 percent of the richest countries’ gross national product (GNP)
towards developmental assistance. Disregard to the altruistic purposes of developmental
assistance for political gain demonstrates an abuse of power and thus corruption. Similarly, the
responsibility towards the signed United Nations Millennium Project has been overlooked.
During the Speech from the Throne in 2002, the Canadian government agreed to double its
Overseas Developmental Assistance by the year 2010. Referring to Canada’s International
Development Platform, the state fell $2.222 billion short in 2010. Furthermore, “For Canada to
reach the 0.7 per cent of GDP target by 2015, additional spending of some $41 billion would be
required. This is a large sum for a country like Canada and therefore the United Nations target
will not soon be reached” (Cullen). In addition to the fourteen percent drop from 2009 to 2014,
these agreements have not been a priority of the Canadian government. The Canadian
government is not fulfilling their obligations of developmental assistance and therefore is
contributing to the lack of aid in the foreign assistance industry through their passivity.
Present in the developmental assistance industry is tied aid, or the provisions of aid that
must be spent in the donor country. Tied aid results in multiple problems affecting the efficiency
and effectiveness of foreign aid. However, statistics from the InterPress Organization states,
“About 60-75 percent of Canadian aid is tied, one of the world’s highest amounts. The United
States, Germany, Japan and France still insist that a major proportion of their aid money be used
to buy products originating only in their countries (Deen). Therefore, Canada is risking
neglecting to positively monitor foreign aid in order to reap benefit from having aid filtered back
into the economy. This is due to the fact tied aid is acknowledged as a cause of developmental
aid dependency. The recipient country’s economy becomes reliant on the overpriced goods and
services of the donor. Countries that face foreign aid dependency are most likely underdeveloped
and commonly are former colonies exporting cheap materials due to their lack of development.
Prices for the costs of the projects result in an accumulation of debt. Consequently, tied aid
results in the negative implication of aid dependency and benefits the donor country significantly
to the detriment of the recipient country. Developmental assistance requires selfless intentions to
enable proper aid of foreign countries and therefore tied aid is a corrupt aspect of the
developmental assistance industry.
Corruption of foreign aid is present in the mismanagement of funds in donor states,

mentioned in relation to Kenya, and the Intergovernmental Organization, and the Canadian
International Development Agency (CIDA) in 2009. Top officials in Zambia’s Health Ministry
took part in the corrupt use of foreign aid in November 2010. Internal documents by Probe
International illustrate the CIDA’s loss of $880,000 from embezzlement by Zambian health
officials. The country faced an abrupt pullback on aid received which significantly impacted the
country with a healthy budget that was fifty-five percent reliant on foreign aid. Though
corruption was fuelled by the recipient country, critics found it,
More interesting, how aid agencies failed to detect the fraud themselves … aid agencies
weren’t aware of the misuse of their funds in the health sector until a Zambian whistle
blower alerted them. This has prompted questions about the aid agencies’ own internal
auditing capabilities. (Adams)
Ignorance about the distribution and lack of progressive knowledge in foreign aid is fuelling
corruption and is thus contributing to the corruption of foreign aid. In addition, the CIDA
demonstrates weak measures in disciplining Zambia’s health ministry. Other than withholding
$14.5 million in funds, the agency’s website depicts continuous funding and, ironically,
improvement of the delivery of foreign aid. Mismanagement of funds leads to not only the loss
of funds from taxpayers but also the loss of foreign aid to the recipient civilians. Therefore,
corruption is not limited to individuals taking aid but also encompasses those not taking action
before or after to address the issue.
In April 2013, the federal government of Canada decided to transfer the responsibility for
developmental assistance from the Canada International Development Agency (CIDA) to the
Department of International Trade and Foreign Affairs (DITFA). The decision allows Canadian
intentions to deviate from those of the original CIDA. Development Assistance from the CIDA is
intended to aid in the sustainable future of a poverty stricken society. The objectives of the
DITFA involves helping recipient countries develop, however, they also must consider the
immediate commercial interests of Canada. StarNews reporter Adam Chapnick states, “…
providing “assistance” in ways that privilege donor priorities overexpressed recipient needs – is
both inefficient and ineffective” (Chapnick). The Canadian government’s decision to transfer the
role of development assistance to DITFA benefits Canada over poverty stricken recipient
countries.
Prior to 2015, the Conservative Party of Canada and the Prime Minister Stephen Harper
led the Canadian government. Though the Liberals have been elected to power, the Conservative
Party’s views and principles included aspects that negatively affected the developmental
assistance industry. The Ottawa Centre Conservative Association’s states:
The Conservative Party supports a foreign policy that protects Canada’s sovereignty and
independence, promotes our national interests (political, economic and strategic),
contributes to collective security and defense, promotes democratic principles and human
rights, and assists in international development. (Ottawa Centre Conservative
Association)
In relation to foreign policy, this statement illustrates that throughout the party’s nine years in
power, the government’s developmental assistance industry was primarily based upon the
interests of Canada, and then secondarily concerned with the recipient countries.
SOLUTIONS
The developmental assistance industry is primarily funded by the twenty-nine members

of the Developmental Assistance Committee (DAC) (Appendix VI). As of 2013, the industry
contributes $160.3 billion, a figure which rises each year. Donors strive to combat poverty,
promote development, and provide human rights internationally. This is attempted through
developmental plans, emergency humanitarian aid, and bilateral grants and loans. However,
situations such as when, “The Mexicans bowed down when we talked about removing their
foreign aid, and then they began cooperating with our country” (Arpaio) represent the conflict
between aiding a country and receiving privileges in return. The developmental assistance
industry is a fundamental component of global relations, and the intentions are to improve the
well-being of humans. However, institutions associated contribute to the presence of corruption,
while aiming for control and abuse of power, as well as financial gain. Without reform, the
foreign assistance industry will divert away from the intended purposes of development, and thus
contribute to corruption.
Corruption of foreign aid results in the developmental assistance industry assisting

individuals and institutions not requiring support. Corruption of foreign assistance is immensely
controversial due to the fact that institutions voted for and supported by large population are
being questioned. Corruption of foreign aid develops from providing aid to corrupt governments,
aid dependency, and the distribution of corrupt aid. Essentially, it has multiple negative and
detrimental implications on the recipient civilians. Corruption is demonstrated throughout
various facets of human life. However, there are no solutions to end corruption because
corruption and the abuse of power are human nature. Yet, corruption can be lessened in the
developmental assistance industry and multiple theories demonstrate the potential for promising
success.
Transparency is a prevalent solution to lessen corruption of foreign aid around the world
because it allows an open awareness of government activities towards the public. The
government manages multiple public resources, including elements such as: tax exemptions,
public procurement of goods and services, soft credits, extra-budgetary funds under the control
of politicians, and subsidies. Amongst the international society, governments are composed of
different levels of transparency. These institutions make various degrees of efforts to ensure
resources are used in the public interest. An abundance of transparency within a process lessens
the amount of opportunities for abuse and corruption. Transparency also includes citizens able to
criticize government activities, debate public policies, have press freedoms, and higher levels of
literacy. This is due to the fact an openness in government activities and spending is produced
which citizens deliberate on. Government transparency allows citizens to criticize and ensure
activities are within public interest and intentions, thus, lessening the ability to abuse power and
commit corrupt acts obscured from the public.
The role of control in the developmental assistance industry should be given to

international development and humanitarian issue researchers, as well as equally educated
scholars. International development researcher Ben Ramalingam states, “My role involved
leading a team of researchers, policy analysts, communications specialists and consultants in a
range of innovative projects aimed to improve humanitarian performance through learning and
accountability” (Ramalingam). The educated individuals of the foreign aid industry seek to
improve humanitarian aid and their primary objective is to create innovative plans and strategies
to improve assistance. The current role of control through donor government institutions limits
aid based on who requires aid, and what type of aid and quantity of aid they require. In recent
years governments have, “… relied almost exclusively on the volume of aid to assess its impact”
(Wane). If researchers and scholars are able to be in control or are given control, the
developmental assistance industry will fulfill its intent towards altruism. Intent should always be
to contribute to the well-being of others and improve foreign aid to developing countries.
The formation of an international convention allows countries to contribute actively to a

solution for corruption in foreign aid. Over multiple years, the world has advanced and produced
a globalized economy. Therefore, corruption in one country affects the opinion and view of the
international community. With situations such as Zambia’s Healthy Ministry embezzling
Canadian developmental assistance aid in 2010, numerous countries such as the United States
and the United Kingdom put a freeze on aid to the regime. Creation of a global framework
involving both developed and developing nations allows for insights on domestic and foreign
corruption, preventative measures by both parties, and a means of negotiating embezzled fund.
The United Nations Convention Against Corruption (UNCAC) encompasses many of such
principles, however, an action plan to enforce such measures must be established. In the study on
Zambia, no means of getting the lost fund was produced, and Canada lost millions in
developmental assistance. A group consensus to freeze aid to a country embezzling fund would
produce a force strong enough to produce action within the corrupt institution. Revisions and
action by international conventions would form a global framework efficient and effective in
countering corruption of foreign aid.
Theories of economic development have been dominated by ideologies of large donations

and finance since the 1950s. However, solutions involving more than quantity of assistance are
present to eliminate poverty and corruption within developing countries. The Spectator UK
reports immense amounts of economic growth is evident in countries receiving small amounts of
foreign aid:
Rather, it is due to economic growth in countries in Asia which received little aid. The
World Bank has calculated that between 1981 and 2010, the number of poor people in the
world fell by about 700 million — and that in China over the same period, the number of
poor people fell by 627 million. (Acemoglu and Robinson)
Sub-Saharan Africa consists of more than one-quarter of the population experiencing more
poverty and less wealth than in 1960. Comparing poor countries to the rich, the aspiration to
have opportunities, health, water, and educations are the same. However, the governments do not
allow these individuals to emerge from poverty. In the early 20th century South Africa, major
restrictions were implemented on opportunities of the population. The rules governed the
opportunities and incentives of the South African nation, resulting in the division of a lower
economy (called the ‘Blacks’) consisting of about seven percent of finance, and higher economy
(called the ‘Whites’) with ninety-three percent. A focus on the quantity of aid must be replaced
because long-term developmental assistance is dependent on stable governments, human rights,
the rule of law, transparency, and lack of corruption. Finance and political clout from donor
countries are required to filter out corruption and allow institutions to grow. Foreign aid is more
than the simple writing of a cheque.
APPENDIXES
APPENDIX I
APPENDIX II
Donor Administrative Student Refugee Development Debt Percent
Costs Costs and Costs Awareness Relief of
Scholarships Activities Diverted
Bilateral
Aid
Australia 334.88 305.96 153.73 3.26 11.94 17.33%
Austria 334.88 126.45 57.58 6.96 105.77 60.59%
Belgium 91.44 91.62 125.75 13.02 277.65 40.59%
Canada 282.45 180.7 266.53 10.14 197.58 22.83%
Czech 4.98 4.56 9.52 1.36 -- 30.75%
Republic
Denmark 162.01 7.83 143.37 7.25 0.91 15.74%
Finland 81.08 0 22.82 10.15 -- 14.16%
France 493.47 1014 506.94 8.63 1570.39 38.20%
Germany 492 1032.89 75.94 84.52 849.46 24.82%
Greece 10.24 66.69 20 -- -- 90.33%

Iceland 1.74 0 0.1 0.17 -- 9.91%
Ireland 34.66 2.25 0.13 6.01 -- 8.03%
Italy 34.47 6.31 246.69 25.6 7.13 44.62%
Japan 793.99 265.64 0.75 3.6 4.69 7.39%
Korea 59.4 54.31 -- 14.71 -- 10.42%
Luxembourg 20.8 0.08 0.03 3.16 -- 8.61%
Netherlands 397.02 72.52 339.12 6.64 120.32 23.60%
New Zealand 43.03 33.17 19.26 0.36 -- 26.16%
Norway 294.27 4.32 226.81 24.73 21.17 15.79%
Portugal 11.07 26.24 0.82 0.89 6.93 10.56%
Spain 170.09 16.54 22.72 41.71 75.78 30.51%
Sweden 240.22 45.13 570.71 19.34 -- 24.08%
Switzerland 196.21 7.8 654.38 12.88 15.14 35.52%
United 528.26 34.75 44.95 19.14 112.43 8.19%
Kingdom
United States 1855.22 0 830.97 -- 63.71 10.56%
DAC 6665.45 3399.75 4339.74 324.22 3441.01 17.93%
Countries,
Total
APPENDIX III
APPENDIX IV
UNITED NATIONS
Member States
Congo Guatemala Tajikistan
A Costa Rica Guinea Thailand
M Q
Afghanistan Côte D'Ivoire Guinea The former
Albania Croatia* Bissau Madagascar Qatar Yugoslav
Algeria Cuba Guyana Malawi Republic of
Andorra Cyprus Malaysia* Macedonia*
R
Angola Czech H Maldives Timor-Leste
Antigua and Republic* Mali Republic of Togo
Barbuda Haiti Malta Korea Tonga
Argentina D Honduras Marshall Republic of Trinidad and
Armenia Hungary Islands Moldova Tobago
Australia Democratic Mauritania Romania Tunisia
Austria People's Mauritius Russian Turkey
I
Azerbaijan Republic of Mexico Federation* Turkmenistan
Korea Iceland Micronesia Rwanda Tuvalu
Democratic India (Federated
B Republic of Indonesia* States of)
S U
Bahamas the Congo* Iran (Islamic Monaco
Bahrain Denmark Republic of) Mongolia Saint Kitts Uganda
Bangladesh Djibouti Iraq Montenegro* and Nevis Ukraine
Barbados Dominica Ireland Morocco Saint Lucia United Arab
Belarus* Dominican Israel Mozambique Saint Vincent Emirates
Belgium Republic Italy Myanmar and the United
Belize Grenadines Kingdom of
Benin E N Samoa Great Britain
J
Bhutan San Marino and Northern
Bolivia Ecuador Jamaica Namibia Sao Tome Ireland
(Plurinational Egypt* Japan Nauru and Principe United
State of) El Salvador Jordan Nepal Saudi Arabia Republic of
Bosnia and Equatorial Netherlands Senegal Tanzania*
Herzegovina* Guinea New Zealand Serbia* United States
K
Botswana Eritrea Nicaragua Seychelles of America
Brazil Estonia Kazakhstan Niger Sierra Leone Uruguay
Brunei Ethiopia Kenya Nigeria Singapore* Uzbekistan
Darussalam Kiribati Norway Slovakia*
Bulgaria F Kuwait Slovenia* V
Burkina Faso Kyrgyzstan O Solomon
Burundi Fiji Islands Vanuatu
Finland Oman Somalia Venezuela,
L
France South Africa Bolivarian
C Republic of
Lao People’s P South Sudan
Cabo Verde* Democratic Spain Viet Nam
G
Cambodia Republic Pakistan Sri Lanka
Cameroon Gabon Latvia Palau Sudan Y
Canada Gambia Lebanon Panama Suriname
Central (Islamic Lesotho Papua New Swaziland Yemen*
African Republic of Liberia Guinea Sweden
Republic the) Liechtenstein Paraguay Switzerland Z
Chad Georgia Lithuania Peru Syrian Arab
Chile Germany* Luxembourg Philippines Republic* Zambia
China Ghana Lybia Poland Zimbabwe
Colombia Greece Portugal T
Comoros Grenada
APPENDIX V
APPENDIX VI
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Corruption of Foreign Aid 1

Secondly, developmental assistance corruption is present in the formation of foreign aid

Thirdly, the corruption of developmental assistance is present through the distribution of

The international non-government organization, Transparency International, defines

SUMMARY OF RESEARCH METHODS

The purpose of the developmental assistance industry is to provide aid to developing

Firstly, corruption of foreign aid is present through reliability. By definition, reliability is

Secondly, corruption of foreign aid by institutions occurs by their neglectful behavior. In

Corruption of foreign aid is of high importance within the current developmental

In the world today, the topic of developmental assistance corruption is immensely

Ramalingam is the CEO of the Humanitarian Innovation Fund, as well as a researcher at

With aid on the edge of chaos, an adjustment needed to be made in developmental

Non-governmental organizations (NGOs) are citizen-based groups that operate

Ultimately, the present role of control in the developmental assistance industry

CASE STUDY I – AFGHANISTAN

Afghanistan officially referred to as the “Islamic Republic of Afghanistan”, is currently a

The purpose of developmental assistance is to improve the situation in a country such as

In addition, projects constructed from developmental assistance are constantly destroyed

CASE STUDY II – NIGERIA

Nigeria, officially referred to as the “Federal Republic of Nigeria” is currently a secular

As previously mentioned, Nigeria is a growing economy and there are opportunities to

CASE STUDY III – HAITI

Haiti, officially known as the “Republic of Haiti” is currently a sovereign state. It is

Corruption of foreign aid in Haiti is present in the negative affect of contamination by

Official developmental assistance is the international transfer of finance, services, and

Institutions are considered intergovernmental organizations with the association of at

The Canadian International Development Agency (CIDA) is an international organization

contributed to the decreasing birthrate. Essentially, “Corruption is the enemy of development,

Non-government organizations (NGOs) include any non-profit, voluntary citizens’ group

The developmental assistance industry has undergone multiple improvements with

Transparency International’s regular Corruption Perceptions Index (Survey) is based on

The Organization for Economic Co-operation and Development (OECD) is an institution

produce benefits or improvement. ActionAid International presents the aspects of official

Canada is a constitutional monarchy and federal parliamentary democracy located in the

Canada is present in the developmental assistance industry as a donor country

Corruption of foreign aid is present in the mismanagement of funds in donor states,

The developmental assistance industry is primarily funded by the twenty-nine members

Corruption of foreign aid results in the developmental assistance industry assisting

The role of control in the developmental assistance industry should be given to

The formation of an international convention allows countries to contribute actively to a

Theories of economic development have been dominated by ideologies of large donations

Greece 10.24 66.69 20 -- -- 90.33%

WORK CITED PAGE

Universidad de Jaen. AntiCorruption Policy in Canada and Kazakhstan. 9 September 2013.

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