- 2 -
This was
falling; due to some wrong objectives, thereby setting up standards beyond local resources to maintain, as much as to oil prices etc. Some discouraging conclusions (not all supported)
Historically over-emphasis on social services has raised expect- ations and loaded recurrent costs.
Doubt whether aid alone with achieve the prosperity which is the necessary basis for political stability.
Private enterprise tourism offers Rolls Royce service to a few privileged foreigners with perhaps only 20% spin off to local poor (but this 20% is better than an aid financed dole). Private enter- prise not universally welcomed ideologically but nevertheless it is increasingly sought after by the islands with no other natural resources e.g. Anguilla, Antigua, Tinks & Caicos, Caymans, BV!!.
Some quirks
Stitclena
Much aid just finances the local government and societies risk becoming stuck with an over-complex machine. Indirectly, aid helps governments to buy political support: in other words the government controls the electorate instead of the other way round.
Aid manage-
ment thus runs counter to political realities since it destroys the full local responsibility for raising revenue which is a key factor in political maturity.
The biggest budgetary spenders among the dependent territories receive no aid.
The richest territories, Dutch and French, get the most aid.
An unanswered question
What is the "appropriate" level of welfare services? The ranges of answer to question "Should island A have a dentist?". I. No - and go elsewhere if you don't like it. (Quite unreal in the case of St Helena and almost so in Turks:) II. Yes and it is our responsibility to finance one and to continue to do so. No general agreement on either solution.
The hard line
The
British public do not willingly support the aid programme. Budgetary aid most objectionable and better if funds spent on projects (unrealistic). Charity may begin at home (i.e. in dependent terri- the tories) but we should seek to obtain trade and UK benefits from the
aid relationship and reserve the option to end it if we so choose. No evidence of strength of this view but it will grow fast unless aid lobby
IS
fostered.
Some half conclusions
Aid should be directed to achieve reasonable (undefined) level of economic self-sufficiency, even though we no longer demand economic self-sufficiency before granting independence.
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