The Effects of Poverty and Foreign Aid on the Environment

Mar 23, 2001


Dr. David Schmitz
Professor of Economics and Philosophy, University of Arizona

Dr. Schmitz analyses effects of the poverty and foreign aid on the environment. During the course the speaker discusses in detail the unintended economic consequences created by foreign aid using the example of Living Stone, Zambia. People in developed countries tried to support Zambia in a way that will do no harm to its economy. Food and money were not an option because they created even more problems to some countries (Somali, India). So they sent planes loaded with second hand clothing to Zambia. Textile production which was a center of economy in Living Stone could not compete with free second hand clothing which led to the 80-90% unemployment in that area. In short, "to be effective in a long term foreign AID has to assist local economies and not put them out of business which it often does".