Thursday, May 29, 2008

Is UK aid to India justified?

India’s economy is about 50% bigger than Britain’s, but India’s population (1.1 billion) is 18 times more than UK’s (60.7 million). UK’s GNI per capita is US $37,600. India’s GNI per capita: US $720, which means it is at least 50 times less than that of UK.

India on the surface of it looks richer than UK. And logically, it’s India that should send help to UK. But India has more social troubles than UK; some are almost inexistent in UK like illiteracy.

In India, there are still regions and population that still live in primitive conditions compared to the 21st development.

On many occasions, even very rich nations needed international help in times of disaster. The USA received outside help after Katrina Hurricane. Germany did the same when faced with flood some years ago. China wouldn’t have coped well after the recent earthquake without the massive international aid.

The Indian government still lacks full resources to help its entire people. UK still has an obligation to help its helpless population on humanitarian grounds. International help is a means of strengthening diplomatic and economic ties.

Indians living and working in UK are also helping UK economy through their high skills and economic enterprises. So the help given to India shouldn’t be seen as a waste of money but as a means to strengthen the relations between the countries. UK aid to India totalled £1billion. But surely UK gets more than that in its economic exchange with India.

So let’s say, every pound donated to India as aid will be returned by 10 pounds through commercial exchanges.


Looney said...

I have the impression that India is colonizing England at the moment.

Abdelilah Boukili said...

Hi Looney,
Indians and the rest of the Asians are a substantial community in UK, today. UK like many other developed countries can't do without their immigrant populations for the jobs they do and the large contribution to their economies.

Maybe India will economically surpass UK even further in the short term. But it will take it many generations to reach UK current GNI per capita.

amanda said...

If you understamd economics then you will understand the politics of greed. in my opinion. I so could go on. Bring it!