I recently visited, in quick succession, Eritrea and Uruguay on M&E missions. The two countries are probably at the opposite ends of the development spectrum. Eritrea is a food-insecure country that is ranked 165 out of 179 countries in the 2009 Human Development Index. Uruguay has quickly rebounded from the 2001 crisis. Over the last few years, in the middle of the current financial turmoil, the Uruguayan economy has posted amazing growth rates (8,5% in 2010, 6% in 2011). However, what I observed during my visit is that the two countries do have something in common: neither one needs western aid, as it is currently delivered.
Eritrea says so explicitly. There are several reasons to explain such attitude, but the main one is simple: following donors' procedures is too cumbersome. Keep your money and stop bothering us with estimates, tenders and audits.
Uruguay is simply too well off: unemployment stands at 6%; investments flow to the country; the breach between rich and poor is closing. From many points of view, Uruguay is just way more advanced than many European countries. I had to monitor a EU funded project aimed at promoting transparency in local administrations. What I saw would have been considered amazing for most Italian municipalities. How can Europe afford to spend so much money on great projects abroad when the economy is so bad? How can Europeans preach transparency in Latin America when corruption is so pervasive in many regions of the old continent?
In my modest opinion, current aid delivery methods and strategies are as good as dead. Beneficiaries are out; it is time for partners now.
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