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If there is so much aid in developing countries, why poverty is increasing in these regions and the industrialized world?

I'm doing a question for my project. Not only that poverty is increasing in the developing world for the worse, it is increasing in the industrialized world, especially the United States.


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    Dec 27 2012: There seem to be a pretend ignorance in this discussion, which i don't think most of us can afford, that aid is a development tool that has failed. That the United States and all the aid donors provide aid for development and now they are confused because they want development for the poor so badly.

    Aid, by its very definition, is a way of getting leaders of poorer countries to do what you want more like a refined gunboat diplomacy. There is no better way to bring this out than constant treat to withdraw support when the recipient goes out of order. Aid and development doesn't mix because the problem of the poor or underdeveloped in not shortage of funds but lack of what I call productive value.

    Americans are actually creating more poor people with its trade policy. The example I like to give is the case of cotton. In. In Mali, more than three million people – a third of the population – depend on cotton to survive, while the United States has 25,000 cotton farmers. The U.S. cotton farmers are paid approximately as much from government subsidies as they earn from the total value of their harvest. In the 2001/2002 period, the value of U.S. cotton production amounted to $3 billion at world market prices with subsidies of $3.9bn in the same year. What makes the level of U.S. farm subsidies so significant for the world market is that the United States exports half of the cotton it produces, so that America’s export prices have a great influence on the world price of cotton.

    Several studies have attempted to describe the effect of US cotton subsidies on African cotton producers. A study by the Fair-trade Foundation suggests that cotton subsidies from the U.S. are costing West African cotton producers (Mali, Benin, Burkina Faso and Chad) £155m a year (Jowit, 2010). Another study by Oxfam estimates the lost income for West Africa cotton producers as $191m (£118m) each year, while sub-Saharan cotton exporters lost $302m as a direct consequence of US cotton subsidies.

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