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Why Foreign Aid Should Not Be Accepted in Kerala Disaster

Foreign Aid

The real reason why Foreign Aid Should Not Be Accepted in Kerala Disaster. The natures fury destroyed Kerala terribly by unusual rainfall. The whole machinery has come to a halt displacing normal life and infrastructure. The damage done by the Kerala flood seems to be extensive and it will take long years to restore back to normalcy.

Many people have lost their lives, agriculture farming, livestock, crops, their dream houses and the state has lost its sheen and infrastructure in the wake of Kerala flood. Even one of the airport among three international airports has been ravaged by the Kerala floods.

As the rainwater are receding, the extensive damage done to the state is coming into the picture. It is the worst hit and people say that in a span of 100 years, Kerala never ever witnessed such dreaded rainfall and flood. It is expected that Kerala has surpassed an amount of 20000 crore loss.

The state government of Kerala has requested the Central Government to allow a special package for relief to the tune of 2,600 crores. The Central Government has released Rs. 600 crore to the flood-hit Kerala. In addition to this, many Indian states, celebrities, and common people are contributing their share to the Disaster.

Funds and relief materials have started pouring in from different states of India to Kerala to help the state to fight against the damages witnessed by them in the aspect of lives, assets, and properties. The damage is so extensive that these funds won’t compete with the requirements that the state government foresees.

Contribution by Foreign Countries

Some foreign countries are ready to extend foreign aid to the state in the wake of Kerala Disaster, to which Indian Government has denied. India has rejected the foreign aids offer of $100m by the United Arab Emirates. It also denied the aids from Thailand for which the amount is undisclosed yet. This has infuriated the locals of Kerala and many people in the country.

The Reason Stated by the Government

The Central has politely turned down the request of the countries. In 2004, during the regime of Mr. Manmohan Singh, a policy was implemented that India won’t receive any foreign aid from any countries post Tsunami.
Before 2004, India has accepted foreign aid during deadly earthquakes, cyclone and floods struck in different parts of India.

Now, the Central is in no mood to accept foreign fund assistance and they don’t want to make any alterations to the existing policy which is in implementation for 14 years. The State government is interested in receiving foreign assistance and they are continuously knocking the Central Govt. to agree to accept foreign aid proposed by the different countries. The Gulf countries are showing more interest. One of the reasons mentioned for their interest to provide aid to India is that most of the Keralites serve in Gulf countries and the govt. of these countries are obliged by their services.

The policy of 2004 does have provision to accept funds in an individual capacity from NRI’s, Indians settled in abroad, social entities or any individual entity who are ready to assist on humanitarian grounds. It does not permit receiving foreign aid from the country’s reservoir directly to state.

If any country shows to provide foreign aid as a goodwill gesture as allowed under the National Disaster Management Plan India, the country can accept if the foreign aid is transferred to Consolidated Fund of India account and subsequently channelized to Kerala state.

In the wake of the matter, let’s look deeper to understand the cons of Foreign Aids:

1. Increases Corruption & Anti-democratic
Foreign Aid fuels corruption and the hindrance to social- economic development to the recipient country. Even the World Economic Forum has criticized foreign aids for its negative impact on the recipient countries internal system.

Many developing and under-developed country are victims of foreign funding, where these aids are being used for the non-development purpose and disrupt the relationship between the government and the citizens.

If the money is channelized for self-interest by wrong people instead of development purpose, it could lead to disaster in India. Already, we have our neighboring countries keeping an eye on our internal system, one single wrong move could disrupt harmony in the long term.

2. Influence over recipient country’s policies
Many times donor countries use the channel of foreign donation to get a control over developing and under-developed countries government policies & decision making. Owing to this fact, Indian Government has clearly shown disinterest to the foreign aids and have reinstated that if they accept assistance from few countries then India will be under pressure to receive assistance from all countries, whether the amount is large or minimal and such issue can impact us in a negative way. The Center clearly mentioned that these are not unconditional offers. India will need to reel under pressure and conditions if it accepts economic support from foreign countries.

3. Debt Servicing
It is very important for us to understand that all aids are not free, and there are related repercussions to such aids to the recipient country’s economy. When the interest on the loan amount increases manifolds, it becomes difficult to repay the debt and economic conditions of the recipient country worsens.

Conclusion
Looking at the cons of the foreign aids, India is adamant to use its own domestic fund reservoir to help Kerala to rise on their feet. The friction has sprung up between the divided opinion of Centre and the State of Kerala following the turning down the request of Gulf countries for foreign aid. The other fragments of government machinery too are not in support to accept foreign aid.

Hope the contingency plan of Center along with the support of locals, common citizens and celebrities could help Kerala to stand back and revive its lost glory.

Comment below you views if you thing Kerala should accept foreign aid during this time.

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