UK to end financial aid to India by 2015
Having spent time in India, I think that this is definitely called for. The Indian government has enough financial assets to take care of its own people; if it fails to do so because of bureaucracy and corruption, that is an Indian problem that only Indians can solve.
Criticisms thus far have argued that foreign aid monies go to the poorest of the poor. India, it's time to take care of your own poor. If 60+ years of post-independence development programming can't make the democratic system work, then India deserves to watch itself get torn apart by income inequality until it wakes up. What else will work? My argument here is à la Dambisa Moyo in Dead Aid.Â
I am not being harsh, I say the same thing for the U.S. and any other country that doesn't provide for those with less financial means.
(Doesn't seem India cares too much: India will shed few tears over the end of UK aid.)
The UK is to end financial aid to India by 2015, international development secretary Justine Greening has said.
Support will gradually be phased out between now and 2015, saving ÂŁ200m ($319m), and the UK's focus will then shift to offering technical assistance.
Ms Greening said the move, which will be popular with Tory MPs, reflected India's economic progress and status.
Giving his reaction, India's foreign minister Salman Khurshid said: "Aid is the past and trade is the future."
The UK's financial support to India, one of the world's fastest-growing economies, has been a cause of concern among Conservative MPs amid suggestions that funding had ended up supporting prestige projects such as India's space programme.
Ministers have defended the level of financial help in the past on the basis of the extreme poverty persisting in rural areas and historic colonial ties between the two countries.
Ms Greening has been conducting a review of all financial aid budgets since taking over the role in September and visited India earlier in the week to discuss existing arrangements.
She said the visit confirmed the "tremendous progress" that India was making and reinforced her view that the basis of the UK's support needed to shift from direct aid to technical assistance in future.
"After reviewing the programme and holding discussions with the government of India, we agreed that now is the time to move to a relationship focusing on skillsharing rather than aid," she said.
"India is successfully developing and our own bilateral relationship has to keep up with 21st Century India...It is time to recognise India's changing place in the world."
Although all existing financial grants awarded will be honoured, the UK will not sign off any new programmes from now on.
By focusing post-2015 support on trade, skills, health and private sector anti-poverty projects which can generate a return on investment, the UK estimates its overall contribution will be one-tenth of the current ÂŁ280m budget.
In making the decision, the UK is citing the progress India has made in tackling poverty in recent years. It says 60 million people have been lifted out of poverty as a result of the doubling of spending on health and education since 2006.
The UK also says bilateral trade between the two countries is flourishing, growing 20% in 2010.
From 2015, development experts will continue to work alongside the Foreign Office and UK Trade and Investment but focused on sharing advice on poverty reduction, facilitating private sector projects and global partnerships in food security, climate change and health prevention.
The BBC's political correspondent Carol Walker said this was an important step that was seen by the government as part of efforts to focus its aid budget on countries most in need.
The government is increasing the overall overseas development budget to help meet a longstanding international commitment to spend 0.7% of national income on aid.