Name: 外国人援助と送金。クラッシュ・コース・エコン#34 (Foreign Aid and Remittance: Crash Course Econ #34)
Uploaded: 2021-01-14T06:29:25.000Z
Duration: 11 min 57 s
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Hi, I’m Adriene Hill. This is Crash Course Economics, and today we’re talking about foreign aid.

Want to guess what percent of the America’s budget goes to foreign aid? It’s right around 1%

But most Americans have no idea that it’s that small.

A survey by the Kaiser Family Foundation found the average guess

was that 26% of the budget went to helping other countries.

The fact that Americans overestimate their government’s foreign aid so drastically

might help explain why so many think we’re overspending on aid.

The Kaiser study found that more than half of people surveyed said the US was too generous.

But when they found out the total expenditure was closer to 1% of the budget, that number fell to 28%.

Foreign aid is basically the transfer of money, stuff or services from a country or international organization,

that's intended to help out another country and its people.

The Organization for Economic Cooperation and Development

estimates that aid spending by the richest countries was more than $135 billion in 2014.

Of that, nearly $33 billion came from the U.S. The U.K. chipped in more than $19 billion.

Germany added $16 billion. France, $10 billion.

When you look at which countries give the most as a percentage of gross national income, the most generous nation is Sweden.

U.S. Foreign Aid goes to a hundred-plus countries around the world --

and is set aside for goals like peace and security, democracy and human rights,

economic growth, improvements to health and education systems,

humanitarian assistance after disasters, and protecting the environment.

But why do countries spend so much to help out non-residents?

Out of the kindness of their collective hearts? Or for some other more...complicated... reasons?

Historians say the modern age of international aid really began after World War II,

when a number of still-to-this-day significant international institutions were established.

The World Bank was set up in 1944 as the International Bank for Reconstruction and Development,

The United Nations was created in 1945, as “a general international organization to maintain peace and security".

And the IMF came into existence, also in 1945,

with the job of helping to oversee the international monetary system.

In 1947, Secretary of State George Marshall addressed the graduating class at Harvard,

with an offer of financial support for European countries in their efforts to rebuild.

He said: “It is logical that the United States should do whatever it is able

to do to assist in the return of normal economic health to the world,

without which there can be no political stability and no assured peace.

Our policy is not directed against any country, but against hunger, poverty, desperation and chaos”

The speech marked the birth of what’s known as the Marshall Plan.

The U.S. gave out $13 billion dollars in aid, which, if you adjust for inflation, is morethan $130 billion dollars today.

The goal was to help restore production in Europe, to expand trade,

and to a small degree, to try to keep communism from spreading.

The United Kingdom got about a quarter of the total aid.

France got about 18%, West Germany got about a tenth of the money.

The rest was spread to the the smaller western European countries. And it worked.

The countries that took assistance saw their GNPs jump,

in some places their economies were doing better than they were BEFORE the war.

In 1949, President Truman effectively extended the Marshall Plan

to other developing countries around the world.

George Marshall received the Nobel Prize for Peace.

The plan worked on both strategic and humanitarian fronts.

The Marshall Plan helped legitimize and lay the groundwork for U.S. foreign aid programs that have come since.

During the Cold War, the U.S. and its allies, along with the Soviets and its allies, used international aid as a political tool.

Basically trying to win allegiances, and punish countries who didn’t seem quite loyal enough.

Once the Cold War ended, foreign aid transitioned from geopolitical carrot and stick

toward more actual humanitarian and economic aims.

Adjusting for inflation, in 1960 total international aid to countries in sub-Saharan Africa was about $6 billion.

Governments got more interested in trying to help lift people out of poverty

and improve economic conditions for the poorest countries.

Sub-saharan African nations also receive significant aid to help fight HIV and AIDS.

In 2015, the U.S. planned to send Kenya $486 million in assistance to combat HIV.

But international aid doesn’t always go to the poorest countries or the countries fighting epidemics.

Some research has found donor countries are more likely to send aid to former colonies or strategic partners.

For example, the U.S. sends hundreds of millions of dollars to Israel

and more than a billion dollars a year to Egypt, mostly earmarked to promote Peace and Security.

France has focused its aid on its former colonies.

And Japan directs aid to countries with similar political interests.

Donor countries also tend to want to write big checks to countries that are moving toward democracy.

And, donor countries sometimes use international aid to encourage trade with the recipient country.

Like say if the U.S. sends aid to a country that turns around and uses that aid to buy U.S. exports.

The greater amount of trade a donor country does with a recipient country,

the more aid the recipient country is likely to get.

Now, it probably goes without saying that big donations don’t guarantee results in

the outcomes a donor country is looking for.

There are quite a few ways that foreign aid programs go wrong,

including when countries don’t coordinate their aid,

when they don’t involve the recipient country in figuring out how to allocate the money,

and when the recipient country is run by corrupt leaders, who don’t use the aid for its intended goals.

Some economists say foreign aid actually encourages corruption, by helping keep bad governments in power.

As for whether or not international aid can actually encourage long-term-economic-growth in poor countries,

economists are divided on that. Some say it doesn’t.

Others think aid can help foster growth in countries with good macroeconomic policies are already in place.

And others are even more optimistic saying aid encourages growth period.

I think we can call that debate “unsettled”.

And even what seems like a non-controversial idea,

like sending food into a country suffering from famine, has detractors.

Economists argue that food aid increases the local supply of food,

which reduces the cost of food, and hurts local farmers.

So, in theory, lower prices could lower food production.

Which is exactly what you don’t want in a famine.

Luckily, for those who like to feel good about helping out in the world,

there’s research showing foreign aid can be a positive force.

Especially in the field of public health:

Public health aid has nearly eradicated the parasitic Guinea Worm in sub-Saharan Africa.

In 1986, there were 3.5 million cases of Guinea Worm reported.

All thanks to a program of education about simple water treatment

and medical practices that stop the spread of the parasite.

According to the World Health Organization, between 2000 and 2015,

the number of new cases of malaria fell by more than a third.

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外国人援助と送金。クラッシュ・コース・エコン#34 (Foreign Aid and Remittance: Crash Course Econ #34)

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