The trickery of economic aid

By Luc Loranhe (2007)

Most economic aid that developed countries provide to so-called developing countries is actually a trick that prevents these countries from developing. "Globalization" is another such trick.

The trickery of economic aid works like this: dump your industrial surplus in undeveloped countries, and thereby make it impossible that a competing industry will ever grow there. Aid is but protectionism of rich countries. Through state subventions and subsidies, prices of export products become artificially low. In normal trade relations, such dumping would be a case for international jurisdiction. But when disguised as aid, rich countries can dump their surplus at such low prices, that every local producer is bankrupted.

Where the EU supplies cheap diary, no man with capital would want to invest in cattle farming. Where cars and spare parts are imported from Japan at tariffs below 5 percent, nobody will even try to produce even just wipers. Where television stations can show imported soaps, no movie industry will ever evolve.

Open trade only favors developed countries. For undeveloped countries, open trade means that they stay undeveloped because they never can compete with established production facilities in developed countries, especially when the governments of developed countries, through state subventions, allow their industries to dump their surplus at below production costs.

Aid is just a dumping orgy. And rich nations expect to be applauded for this.