Contrary to what aid is said to achieve which is redistribution of wealth from the rich to the poor, unemployment is skyrocketing at 23.5% according to Trading Economics with poverty rate being 49.7% with 75% of the population either poor or vulnerable to poverty according to Lesotho Poverty Assessment Report.
The education system that has teachers reproached for lack of motivation depicted by 2019 whole year retreat and poor final examination results, deteriorating services at health facilities as well as escalating cases of crime and human trafficking all question allegation in functionality of what development aid claims to achieve.
According to The Inconvenient Truth About Foreign Aid Article by David Sogge “for recipients, aid has been a very mixed blessing, but for donors it's been a blessing”.
Cost attached to acquisition of aid include having to become a member state, membership of which coming at a financial cost according to the International Bank for Reconstruction and Development (IBRD) Articles of Agreement where there has to be financial inducement in a form of membership fee, subscriptions and share capital, the amounts of hardly revealed to taxpayers. In essence aid obtained as development assistance is in actual fact a loan, payment methods and conditions of which also never revealed.
Lesotho, seemingly a donor dependent country has been a recipient of aid from a number of international donors few of which being International Fund for Agricultural Development and World Food Programme (WFP) from The World Bank Group, health and disaster assistances from Unites states Agency International Development (USAID), social protection and child grants from European Union Assistance (EU), Clinton Foundation assistance for HIV/AIDS under IRISH AID, Millennium Challenge Account under United Nations Development Assistance Programme (UNDP) and the recently received Economic Diversification Support Technical Assistance Project from The African Development Bank Group.
“Under vigorous donor pressure, poor countries have poured trillions of dollars into Western Banks under rationale of self-insurance” stated Sogge. This says before aid is acquired there should first be huge credit in the accounts of Western Banks from poor countries citizens, which predisposes them with a prospect of having to survive on debt under a huge debit balance in their accounts, a system not different to that of loan sharks and a reverse flow of capital which according to Sogge essentially means that savings in emerging markets are being recycled in ways that put the responsibility of allocating that capital in the hands of a few financial decision makers, sitting at the apex of a concentrated global financial systems.