A few years ago, the head of the Kenyan anti-corruption unit
was hiding in a dorm in Oxford University, on the run for his life. He had
secretly taped Government ministers and officials discussing stealing millions
of dollars. A lot of this was aid money.
The Global Health Fund has just released a report alleging
that the Cambodian Ministry of Health has potentially misused $12m of $87m aid money.
Officials asked contractors to inflate costs to then give kickbacks to the same
officials. Transparency International has announced that Cambodia is perceived
to be the 17th most corruption country in the world.
![]() |
It didn't take long for this guy to count his chickens. He was just sitting there waiting for a bus. With his chicken. |
Understandably, people in donor countries see this
corruption and feel that their money is being wasted. I hate seeing this waste
too, especially when you can see so clearly the difference the money could
make. Some think that because some money is being wasted, donors
should stop giving money. However, this is akin to turning off all the
lights because the light bulbs lose some light energy through heat.
Embezzling money is a type of waste and waste happens in all
governments, and all organisations. However, wasted money can still create some
benefits as rather than the money simply disappearing, it is being used for
other purposes. In Cambodia, for instance, it used to buy Lexus or Range Rover
cars, expensive watches and big houses. This is disgusting but it is undeniable that this spending
boosts the economy and creates wealth.
Now, obviously this is not the optimal outcome; the money
would have greater benefit if used for other purposes and contributed to more
equal development. But a lot of the wasted money is being spent in the
developing country, injecting millions into the economy and creating jobs.
Corruption and waste should not be ignored however, as the
negative effects on society are clear – just read It’s our turn to eat, which
documents the corruption scandals in Kenya mentioned above. Donor and recipient
countries should find ways to reduce corruption and waste.
I believe that part of the answer is looking at VSO. VSO
does not send money, VSO sends people. The aim is not to spend money and build
things, but to spend time and build skills. The value is greater and the
opportunity for misuse of funds, as there isn’t any, is small. VSO volunteers
can also help build systems of working that make it harder for corruption to
happen.
VSO can also waste money by having ineffective volunteers
but there is not the same damaging effect on society of corrupt officials
grabbing huge amounts of wealth. Also, working with a volunteer is hard; taking
aid money is easy. Whether they want to work with volunteers is a good
indication of whether they are serious about improving working methods and
systems or not.
Gordon