Problem

Reallocation of aid funds to alternative priorities

Other Names:
Regional transfers of development capital
Unbridled competition for aid funding
Fashionable aid
Nature:
Development aid funds, originally scheduled for developing countries, may be diverted to alternative priorities such as the emerging democracies of eastern Europe.
Incidence:
In 1991, many civil rights cases in South Africa were not able to have legal representation because of cuts in traditional sources of funding, largely attributed to competition with eastern European causes. Human rights laws firms faced a financial crisis as a result, and lawyers were frequently before their cases come to trial through lack of payment of fees.
Claim:
Channelling funds into eastern Europe beyond its legitimate needs poses great danger of an explosion and a further deterioration of the North-South relationship.
Counter Claim:
Total foreign direct investment flows in 1993 amounted to $195 billion, of which flows to all of Africa were just $3 billion and to Central and Eastern Europe only $5 billion. Thus fears that FDI flows to this region would be at the expense of developing countries do not appear to have been justified.
Related Problems:
Abuse of relief status
Problem Type:
F: Fuzzy exceptional problems
Related UN Sustainable Development Goals:
GOAL 1: No PovertyGOAL 2: Zero HungerGOAL 3: Good Health and Well-beingGOAL 4: Quality EducationGOAL 5: Gender EqualityGOAL 6: Clean Water and SanitationGOAL 7: Affordable and Clean EnergyGOAL 8: Decent Work and Economic GrowthGOAL 9: Industry, Innovation and InfrastructureGOAL 10: Reduced InequalityGOAL 11: Sustainable Cities and CommunitiesGOAL 12: Responsible Consumption and ProductionGOAL 13: Climate ActionGOAL 14: Life Below WaterGOAL 15: Life on LandGOAL 16: Peace and Justice Strong InstitutionsGOAL 17: Partnerships to achieve the Goal
Date of last update
01.01.2000 – 00:00 CET