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Janine R. Wedel

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Will Foreign Aid Dollars Help or Hurt Democracy in the Middle East?

Posted: 06/ 2/11 08:52 AM ET

The news from the G8 meeting last weekend was that billions in Western aid dollars are about to flow into Egypt and Tunisia in hopes of supporting "democratic reform," with the leaders comparing the so-called Arab Spring to the fall of the Berlin Wall. Several editorials suggested the G8 do all it can to support not just economic stabilization, but also, as the Christian Science Monitor put it, "the far more nimble forces of 'civil society' -- the charities, business groups, women's and youth advocates, legal advisers, health organizations, and democracy promoters who are outside government."

The goal of handing out foreign aid to foster "civil society" always sounds noble and well-intentioned. But you'll forgive someone like me for being skeptical about the results. I saw up close how those dollars were deployed in Central and Eastern Europe some 20 years ago, and wrote about it in my book Collision and Collusion: The Strange Case of Western Aid to Eastern Europe. Useful contacts and exchanges were sometimes forged. But the result, more often than not, was that aid served to enrich a few favored cliques, in direct contradiction with stated aims of building democracy and engendering pluralism. Those in the West hoping to further cultivate the nascent "Arab Spring" would do well to heed the lessons of the post-Communist era. 

In those years soon after communism fell, Western aid dollars were plentiful and so was innocence -- but rarely among the savvy Central and Eastern Europeans. On the contrary.  Frequently deficient in cultural and historical sensibilities, it was the Western consultants and aid representatives who often made social fools of themselves. They often needed local fixers not only to set up contacts and translate but also to explain the ABC's of getting things done in the new frontier: "political party", "bank", "profit", "tomorrow", and "yes", didn't necessarily mean the same things in the West. 

And they failed to realize that, often, their chief source of attractiveness to their new "friends" in the East was in the entree they could facilitate. Meanwhile, Central and Eastern Europeans -- their eyes on foreign access, funds, or travel -- applied to unsuspecting foreigners the persistence and sophisticated wheeling-and-dealing skills that they had honed under communism. 

Take, for instance, a "training in democracy" workshop I attended in 1990 in Poland, where American consultants thought they were dealing with key political leaders because the participants headed "political parties." In reality, the Poles, for the most part, were not national leaders but representatives of political discussion clubs that had mushroomed during the relaxation of control preceding the collapse of communism. (The truly influential political leaders at the time headed citizens' initiatives that were implicitly, but not explicitly, political.) And these so-called "politicians" were experts at both deploying the democracy rhetoric, and also playing on Westerners' inflated view of their own usefulness. Here's a typical exchange: 

A consultant (respectfully): "You were in prison, too? I admire your courage."


A politician (smiling modestly): "Yes, I was." [It didn't take any special courage. I was picked up just like all my friends.]

A consultant: "You suffered. If there's anything we can help you with now, just let us know."

A politician: "The workshop has been so enlightening. One thing just occurred to me. There's a shortage of paper and, you know, we don't have enough money to buy fax or photocopy machines." [Of course, we think you can help. Travel abroad? Funds? Other contacts? Anything that might give us visibility in the West and the prestige we need here that is associated with Western exposure. That's why we bothered to come to your workshop.]

A consultant
: "Perhaps my organization could help."

A politician (humbly): "Oh, we would be most grateful!"

And so a handful of brokers with enough energy and skill to play in the new arena emerged. They made decisions and amassed resources on a large scale, by local standards, and Western funding tended to reinforce their success. The issue was not just money, but, critically, "symbolic capital" -- an individual's combined cultural, social and financial power. To get money from the West was to be blessed by it, greatly enhancing one's reputation and lending legitimacy that could be leveraged both inside and outside the country to accrue further rewards, and compounding the power of the individual's group.

And therein lies a chief problem with much foreign aid: often, certain groups get promoted, and not necessarily for the right reasons. Although, from a donor's point of view, one can understand the homily that "helping someone is better than helping no one," the meddling in local politics that the "help" sometimes creates puts the wisdom of this belief in doubt. Support of one group to the exclusion of others builds up certain elites -- indeed, can help to crystallize some in the first place. In Poland in the early 1990's, the groups with enough clout and Western contacts to get foreign money gained steadily, while others with just as much indigenous support but less visibility in the West -- and, thus, less monetary support -- tended to lose. 

Arguably, this reality had both positive and negative aspects: On one hand, those supported by the West were sometimes the people best equipped to be leaders and make critical decisions. On the other hand, resentment was stirred up among those outside the networks -- especially among those who would likely have been in leadership positions if people had been chosen primarily on the basis of merit. This concentration on a select few contributed to resentment especially because the few beneficiaries tended to distribute money and favors based on group loyalties and obligations.

For donors to overcome this dilemma would have required in-depth knowledge of the histories and politics of local groups -- expertise they seldom sought or appreciated the value of. The donors were caught in a paradox: To achieve their stated reform goals (in this case, of pluralism, civil society, and democracy), they selected and promoted specific political parties and groups. But this strategy seemed more likely to help narrow, rather than to widen, the range of participation. 

Can the West avoid this in Egypt and Tunisia? History indicates it will be very difficult, but one suggestion is a twist on another homily, the one that says "think globally, act locally." In the case of foreign aid, Western consultants would do well to think locally when acting globally. Before handing out grants big or small, they need to enlist the help, as the Monitor also advised, of those with local expertise in country to suss out history,institutional memory, and competing motives. There is no substitute for local knowledge. Democracy is never a simple translation.

Linda Keenan edited this piece.

 
 
 

Follow Janine R. Wedel on Twitter: www.twitter.com/janinewedel

 
 
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06:30 AM on 06/03/2011
Our aid is not so innocent.
Look at the history of Central and South America.
Our country is in deep debt.
We are canibalizing public services and social safety net to feed out war machine.
Any aid comes with "Conditions". For example the book, "Confessions of an Economic Hit Man" lay out some telling insights.
We are"Aiding" Iraq with, "Trainming" We have aided Central American countries with training
at the, "School of the Americas "
Other than making life wonderful for a few cooperative wealthy people, our aid tends to bring hell on earth to the average citizen.
We have been aiding most of the deposed leaders for a long time already.
The US should solve its' domestic problems rather than keep spending on corporate agendas in poor countries. It isn't doing the taxpayers any good.
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straightuptalker
What ever happened to common sense?
05:11 AM on 06/03/2011
Much of Foreign Aid isn't used for its intended purpose, as in the case of the Jordanian government whom the U.S. paid $163 Million...directly in cash. Personal treasure chests are brimming with taxpayer funds while we all struggle here at home. Egypt and Israel receive billions each year, most of which is to buy weapons from the U.S. And Egypt gets $74 Million for healthcare while our elected officials are trying to destroy ours. Kenya and So. Africa get millions for HIB/Aids education. Note these are 2008 statistics so the level of aid is most likely much higher today. Also note that these countries receive our support annually...not a one-time deal. We distribute foreign aid to more than 150 countries while our own is on the edge of financial and economic collapse.
04:07 AM on 06/03/2011
Foreign aid is never without strings attached

"The gas deal has been an integral part of the two countries’ relations (|$rae|/3gypt) and has been supported by Washington. President Obama recently offered Egypt $1 billion in loan guarantees and $1 billion in debt relief on the condition that it meets its commitments. The United States has told Egypt that its security obligations in the northern Sinai are among its commitments, an American official said."

http://www.nytimes.com/2011/06/02/world/middleeast/02egyptgas.html
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nkurland
I'm going to leave this planet alive
11:42 PM on 06/02/2011
There's only one type of conceivable aid that could possibly be justified. Aid to nascent democracies in the form of debt relief for debts incurred under the previous regime.
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hrpmap
Retired man still active..
11:31 PM on 06/02/2011
The first answer that comes to mind is that it certainly won't benifit Americans to be giving away borrowed money since we are in financial truoble and could use every penny we have here at home.
11:14 PM on 06/02/2011
are you sure it is safe to assume US is a functional democracy, by any stretch of imagination?
10:02 PM on 06/02/2011
As long as the West turns the blind eye on the atrocities committed by the bedouin rulers of Bahrain, Saudi Arabia, and Persian Gulf Arab states, there will not be democracy in the Middle East. In fact, the bedouin rulers of these countries will rule with the Iron fist thanks to the West's support. Here is one example where the West has decided to divert attention from the atrocities committed by the bedouin rulers of Bahrain and Saudi Arabia. http://www.counterpunch.org/patrick06022011.html
05:18 PM on 06/02/2011
Those Arabic countries are making us Americans look like a bunch of fools. They have more free benefits and government hand outs than us Americans have.
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chemguy
Liberal, but not Democrat
03:13 PM on 06/02/2011
The larger problem is that we've taken the capitalistic idea so far that we think that anything can be solved with enough money. In American, we've collectively lost every management skills besides throwing money at problems.
02:54 PM on 06/02/2011
How about think locally - act locally. Keep the money in the USA. It is outrageous to spend billions in foreign aid when this country is in such precarious financial shape.
02:52 PM on 06/02/2011
Look at what our bilions in aid to Israel have done--turned it into a beggar state with no concern for its neighbors because it has all the money it needs from its daddy--the US>
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NessEliot1932
Tax Fraud at 94% since we cannot Prosecute
01:53 PM on 06/02/2011
Spread that Debt Slavery of Usury Interest to the NEW territories.

Spread the USA European-US Oligarchy.

Nothing is NOBLE about either.
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OntheBorder
Part of the 53% that carries the Liberal weight
01:45 PM on 06/02/2011
Yeah, right. More money to corupt Arab governments.

Keep that money is the US, let the Arab states sink or swim on their own hook. The US can not carry them forever and they need to make the changes in their own countries.

BHO should shut up, sit down and refrain from breaking anything else between now and Jan 2013 when his replacement takes office.
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Palspal2
01:31 PM on 06/02/2011
Just subtract it from the pot of money given to that civil society nightmare - Israel. Then we are half-way to a win-win situation.
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harveyr2
Be skeptical of politicians or be their pawn
01:02 PM on 06/02/2011
Foreign aid given directly to a government is a waste of money. Foreign aid that is used to educate the masses, build schools and infrastructure might generate returns that exceed the costs. Foreign aid that buys food is generally misappropriated to the benefit of the ruling elite.

Good intentions do not usually generate good results.
02:18 PM on 06/02/2011
Even there you are exposing your own cultural bias. Soft money is best spent on the things the local culture defines it's happiness upon. Schools and modernization are things we define OUR happiness based upon. First goal meet the fundamental needs, second goal expand beyond the fundamental needs to wants based on the cultures priorities not ours.

Building a school and damming rivers to rpomote a sedentary lifestyle might sound great but if the population you want to serve is nomadic well asking them to settle down so their kids can learn may not be that realistic. Spending money expanding watering holes and supporting NGO domestic or foreign that provide education on the move might be the best way to reach that group.

Also propping up a new elite with whom we can cut deals isn't necessarily contrary to US interests, so I don't necessarily believe the authors experience in eastern europe didn't accomplish precisely what was intended. People who became of power and influence who the ambassador could call to resolve issues.

What we really should do is get some ethnographers on the ground to come to a fundamental understanding of how the various people in the country define their well being then define how we best work on promoting that. Distributing through the elite is a bad idea if our goal is benefitting the people. If it's fostering relationships with the new elite it's good policy but won't promote democracy.
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chemguy
Liberal, but not Democrat
03:28 PM on 06/02/2011
Great post. People have a really hard time comprehending how every aspect of our quality of life is governed by our cultural expectations. Sub-Saharan Africa is case example of this going terribly wrong. Prosperous societies have been thriving in Africa for thousands of years, but things didn't start to fall apart until Western ideas of civilization were forced upon them. Everything from the civil wars to the malaria epidemic are a result of trying to enforce cultural ideas of quality of life.