Aiding or abetting?: dilemmas of foreign aid and political instability in the Melanesian Pacific

Despite receiving high volumes of aid, many of the goals of aid to the Melanesian Pacific countries remain unmet. This article investigates the impacts of foreign aid , and its role in situations of fragile political stability.

Eight links between aid and political instability in the Melanesian Pacific are identified:

• a heavy dependence on aid leaves countries vulnerable to external pressures
• aid may be helping to widen wealth disparities
• aid can divert the attention of recipient governments
• poorly supervised aid may encourage corruption
• the ‘wantok’ system operating the Melanesian Pacific countries may be hindering the equitable distribution of aid
• disputes over the sources of aid can directly cause political instability
• access to aid funds can be a ‘prize’ to contest
• aid can inadvertently finance internal repression and violent conflict

The article concludes that although political stability is a legitimate goal for aid, the experience in Melanesia has suggested that aid has played a role in the continuing political instability in Melanesia. The effectiveness of measures to promote development must be judged against the ends they purport to serve.