Non-governmental organizations (NGOs) have become key actors in responding to poverty and related suffering in Somalia. They also play a leading role in providing health care and education. One of the aims of foreign aid is to help bring peace and security to the political and economic scene to avoid losing a side source of income. Although the original motive behind foreign aid is institutional reform, including rule of law reform, the promotion of democratic governance, and fostering economic development, its impact remains questionable.
However, one of the biggest problems with foreign aid is that it can actually fuel conflicts and do the exact opposite of its intended goals. In Somalia, aid funds and materials are often lost to corruption through theft, appropriation, deliberate mismanagement, and nepotism. Millions of dollars a year in aid are lost to corruption in Somalia. Corruption is an age-old problem in Africa, with roots in colonialism, introduced by corrupt colonial governments. Unfortunately, little to no improvements have been made in terms of socio-economic or political development in Somalia.
The other issue with overseas aid is its ineffectiveness in tackling corruption. In fact, it may even exacerbate corruption and fuel conflicts. In Somalia, aid has created long-term dependency, poverty, conflict, lack of infrastructure, lack of community development, and poor governance. It fails to address underlying causes like accountability and responsibility. The primary beneficiaries of this atrocity are often foreign NGOs. Aid unnecessarily increases the cost of operations for most agencies without necessarily improving the lives of the people. A significant portion of their budget goes to services such as cars, rent, and security. NGOs in Somalia earn four times as much as their Somali counterparts.
Furthermore, international aid has a major problem of being overly controlled by donors and organizations from rich Western countries. Money and resources are often used on projects that are ineffective or fail to meet the needs of beneficiaries. Foreign aid can also pose a challenge to the rule of law, democratic reforms, and economic policies that do not align with donors’ priorities. The significant debt burdens of less developed countries often result from foreign aid packages pushed by wealthier countries and Western institutions, pursued by corrupt politicians and businessmen in recipient countries.
Most people don’t realize that loans are usually embedded in aid packages, either directly or as a condition of foreign aid donations. It is worth noting that foreign aid itself is not the problem but rather the circumstances and methods of its distribution. Somalia, as a case study, raises questions about why intended results have not been achieved, considering the vast amounts of money received for development.
I believe aid should come with conditions, similar to models in Ghana, Uganda, and Ethiopia, where conditioned aid has significantly lessened and controlled the misuse of resources. Linking conditionality to aid when it comes to political and economic reform is absolutely necessary to improve its effectiveness. Therefore, if aid is given to countries without strong democratic institutions, conditions must be attached to ensure a positive impact. Aid received for Africa’s development must fall into the right hands, be used by the right people, and serve the right cause.
