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Empower Women 1
A SOLUTION TO EMPOWER INDIAN WOMEN THORUGH FOREIGN AID
By Vikram Nandyala
ST16-4983 Research and Writing Seminar
Charles Bartsch and Dan Ewert
University of Florida
Gainesville, Florida
August 3, 2016
Empower Women 2
EXECUTIVE SUMMARY
Thesis Statement: If foreign aid is to be given to India in the future since much
development is still needed, this paper suggests it be used to empower women in India,
something which has proved to develop economies even further and decrease the
population growth rate.
The purpose of this research project is to inform international development practitioners,
such as leaders at the IMF, the World Bank, and USAID, that their methods to implement
foreign aid to India have not been effective in the past. There needs to be some major
organizational changes to how foreign aid is conducted in other countries, constructed by very
meticulous instructions so that no errors can be made. This project is not meant to support the
use of foreign aid in any ways because it is a very complex process, but rather to provide a
solution if a country does want to provide foreign aid to India. Another point that this project is
trying to stress is that foreign aid in the past to India was primarily focused on developing the
agricultural economy. Now that India’s economy has developed so much, foreign aid does not
necessarily have to be spent directly on the economy to grow it even further; developing women
in the country could be the next step to improving the country, economically and socially.
Methodology:
In order to explain why foreign aid should be directed to empower Indian women, the
paper is split into three parts. The first section will provide background on foreign aid and
economic development in general, while the second section will focus more on how foreign aid
has impacted Indian economic and women’s development in the past. The third section will be a
solution on how to properly implement foreign aid in India to empower women and will include
a SWOT and PEST Analysis. Finally, the paper will conclude with an explanation on the
importance of proper implementation of foreign aid and its effects.
Resources:
The resources that I plan to use in my research project are the following: educational and
governmental website articles, books that were collected from the American University Library
and the Georgetown University library, JSTOR articles, notes taken at a policy forum at the
CATO Institute known as the policy forum of twenty-five years of Indian Economic Reform:
India’s Record and Prospects of Becoming a Major World Problem where experts like
Swaminathan S. Anklesaria Aiyar and Ashley Tellis talked about India’s prospects in the future,
and an informational interview that was conducted with Ian Vasquez, a director at the CATO
Institute who recently moderated the same CATO institute policy forum that I attended.
Conclusion:
International development and foreign aid could be a beautiful thing that can develop an
entire country and possibly eradiate many third-world problems. Unfortunately, though, people
have taken abuse of the system and tried to implement it for their benefits or if they truly did it
for the better of people, they did not take detailed steps to implement it properly; for example,
American officials did monitor international development in India but lived in the posh areas and
didn’t experience its effect on the poorer areas. Foreign aid has known to fail numerous times in
the past but if a nation or organization does want to work to develop a country that has an
enormous amount of potential, then this paper would recommend that they follow the solution
that is outlined. If India developed so much since 1991 which is when India’s economy has been
known to grow, their future can be even brighter if foreign aid was implemented properly.
Empower Women 3
A SOLUTION TO EMPOWER INDIAN WOMEN THORUGH FOREIGN AID
From 1946 to 2012, India received about $65 billion from the United States alone, and
very little of this money has had a positive impact on India (Dawn). Though the Indian economy
has grown since foreign aid was first given to India, this growth cannot been attributed to foreign
aid. Instead, what contributed the most to the success of Indian economic development since
1991 was the movement from socialist to liberalization and privatization policies, which resulted
in more foreign investment rather than foreign aid. Despite the booming economy, there are still
many social problems including poverty and a large population growth rate. If foreign aid is to
be given to India in the future since much development is still needed, this paper suggests it be
used to empower women in India, something which has proved to develop economies even
further and decrease the population growth rate.
This paper is divided into three main components. The first section will provide
background on foreign aid and economic development in general, while the second section will
focus more on how foreign aid has impacted Indian economic and women’s development in the
past. The third section will be a solution on how to properly implement foreign aid in India to
empower women and will include a SWOT and PEST Analysis. Finally, the paper will conclude
with an explanation on the importance of proper implementation of foreign aid and its effects.
Background on Foreign Aid and Economic Development
Foreign aid is a grant or loan from a country or organization given to a developing
country. Since many developing countries do not have enough resources for such public goods as
education, foreign investors become initially apprehensive about investing in a country that is not
able to develop itself. Foreign aid provides an initial funding to jumpstart support for a country’s
public goods, otherwise known as the ‘big push’ theory (O’Neil). The reasons to give foreign aid
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are more complicated than genuinely trying to help another country grow. For a country like the
United States, a main purpose of promoting foreign aid has been to enhance national security by
attempting to minimize international threats. In a study done by Seung-Whan Choi of the
University of Illinois, Chicago, economic growth has been shown to lower levels of international
and domestic terrorist violence (Martin). In addition, many countries want to develop other
countries to grow local economies to allow them to become trade partners. While the realist
theory believes that foreign aid is given with the intent of strategic intentions like security, the
non-realist theory is more concerned with the economic development of the donor country, and
that foreign aid works towards building the donor’s economy (O’Neil).
Foreign aid has been widely criticized as an ineffective policy that has done more damage
to a country than actually help. Governments in many developing countries are still very corrupt,
so much of the aid is used for unproductive activities. In the past, while the purpose of foreign
aid might have been to increase economic development in a rural region, beginning politicians
have used that foreign aid for their own political gain instead (O’Neil). Proper governance must
first be present in a country before it should accept any foreign aid to prevent waste of money.
Foreign aid has also been known to be fungible in the sense that funded projects already have
enough resources and the government will use additional funding for different projects (Abuzeid
2009). If the donor and recipient countries have the same preferences, then the fungibility of
foreign aid is not a problem but becomes one if their mindsets are not the same. If a recipient of
foreign aid uses the aid amount as a pure supplement to its resources, the aid becomes fungible
and therefore should be used for its intended purpose. Foreign aid will also become not fungible
if there is an effective public expenditure monitoring process. A more effective way in avoiding
fungible foreign aid could be to give direct budgetary support that is based on mutually agreed
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outcomes with certain indicators. A study by Alberto Alesina and David Dollar confirmed that
the recipient country has more control over where the funding goes instead of the donor country,
and if that recipient country has a corrupt government, foreign aid will most likely not be
effective (Alesina 24). This counter-productive behavior has been known to worsen the country’s
economy and has raised need for more foreign aid.
Defining and measuring development has been a difficult task. According to the World
Bank, countries are rated on their GNP levels while emphasizing that indicators like education
levels, health care, and food production are measurements that should also be considered
(Heckert 329). The United Nations Development Programme built a human development
indicator which gives a value to each country depending on life expectancy, education, and real
GDP per capita (Economic Geography).
It has been proven that even minor differences in the economic development rate have
resulted in different standards of living for people in countries. For example, citizens of
developed countries generally live in a community that has less crime than those living in a
developing county (Grover 2014). Economic development has actually been known to even have
an effect on the population rate. The demographic transition model explains that when an
economy develops, the population rate of that country will eventually decrease over time.
Initially, when an economy develops, the death rate will drop due to all the medical advances in
the country, but the birth rate will sequentially decrease because the women will choose to have
fewer children to focus more on their jobs (Grover 2014). Though there is the risk that the birth
rate can become lower than the death rate as the economy becomes very developed (as in the
case of Japan), the concern of a rapidly growing global population is more important than the
risk of a drop in the human population. Developing women is an important step to economic
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growth that many countries realize during their development process. The World Bank reported,
“we need more of it (women development) in those areas that support shared economic
growth…financial services will profit not only women, but also men, children, and societies, as a
whole, as economies grow and poverty is reduced” (Sharma 21). Sectors like infrastructure and
agriculture that drive economic development implicitly exclude women in many countries and
this indirectly hinders the economy from reaching its full capacity. In order for women to
become more integrated into the economy, not only do they need more access to land, labor, and
credit markets, but the social culture in the country has to recognize women as equal to men.
Past Foreign Aid, Economic Growth, and Women Empowerment in India
India has been a common recipient for foreign aid in the past from several different
countries. Many countries believed in the potential growth that eventually occurred after the
economic reforms were implemented and wanted to give foreign aid to start that growth. From
1960 to 1970, while the United States sent less than $1 billion in foreign aid to countries like
Bangladesh and Iraq, foreign aid to India grew from $2 billion to $5 billion (Bandyopadhyay
329). The United States saw India as a state that had a legitimate and feasible path to
development, and thus, decided to give it more funding. From 1951 to 1971, about 56% of
foreign aid to India came from the United States, with the second largest provider being the
World Bank which gave about 12% of India’s foreign aid; the United States is also the largest
contributor to the World Bank (Sharma 275). The United States gave more than $1 billion to
India as foreign aid but India did not use all of that money (Sharma 273). Foreign aid to India
from the United States started in 1951 with the intent that the money would be spent on 2 million
metric tons of wheat (Sharma 272). The United States gave foreign aid to India through the
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United States Agency for International Development, the United States Export-Import Bank, and
the Public Law-480 (Food for Peace Programme).
A major critique of the United States foreign aid to India was that the United States
thought that it knew what was best for India. The American experts did not have the knowledge
of what were the needs of the Indian people in terms of their cultural, social, and economic goals.
Unfortunately the attempt to be omni-present in every country did not always work. Most of the
American experts who lived in India to monitor the foreign aid were staying in affluent areas in
India, not seeing what happened in the lower-income areas and the true effect of foreign aid on
India (Sharma 127). When the United States first started to give foreign aid, India did not have a
stable government and it was much more corrupt than it is today, making it incapable of
managing any foreign funds that it received. Often, India had to pay for consulting services from
the United States which were conditions attached to the development program (Sharma 278).
These consulting service prices were much higher than the internationally competitive prices.
Along with other payments that India had to pay due to further conditions of aid, India had to
devalue its rupee in 1966. From 1960 to 1970, India’s account balance was generally positive,
meaning that its account deficits were due to a lack of exports (Sharma 278). Since there was a
restraint on foreign investment due to India’s socialist policies at the time and their decline in
foreign exchange reserves, foreign aid was responsible for keeping that amount of imports higher
than it was supposed to be. If foreign aid was not being spent at that time, India’s excessive
amount in imports could have been much lower and the economy could have done better. In
addition, before 1956, India’s food grain prices had been stable. However, as demand started to
increase for food and with India’s foreign reserves falling rapidly, India made an agreement with
the United States for even more assistance that involved receiving 50 tons of food grain under
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the P.L. 480 (Kamath). When all of this free food grain came from the United States, food prices
dropped immediately, and many farmers decreased their amount of acreage planted in wheat and
competing cereals (Kamath). As a country whose economy at the time focused on agriculture,
India’s immediate future seemed bleak. This food aid had an inflationary effect on the Indian
economy as well. Most food shipments to India were sent in exchange for rupees which started
to grow overwhelmingly in Indian banks and covered the local United States government
expenses (Kamath). In order to make further payments to the American local government, the
Indian bank decided to issue securities (Kamath). These payments were liquidized in the sense
that the securities that were converted into Indian public debt and the United States further gave
that money to the Indian public sector through grants and loans (Kamath). B.R. Shenoy, a
scholar of the Indian economy, estimated that this process was responsible for about 35% of debt
financing from 1962 to 1971, and increased the inflation rate by about 10% per year (Kamath).
Results have shown, however, that foreign aid did not necessarily lead to a reduction in tax
revenue for the government. From 1970 to 1994, it is noticeable that development spending has
increased from 3.83% of GDP to 4.40% while foreign aid has decreased 1.91% of GDP to
1.27%, confirming that foreign aid has not been effective in the past, so India recognized its
futility and decided to take development matters into its own hands (Kamath).
In 2012, Britain announced it would stop providing foreign aid to India in 2015
(Rowlatt). At the time, Britain was considered the largest donor to India in foreign aid. Britain’s
reasoning was that India’s economy has developed so much that it no longer needed foreign aid.
In fact, India has started its own donor program in the past decade. Despite Britain’s reasoning, it
is fair to say that there is still a considerable amount of poverty and third-world problems no
matter how much its economy has grown. The majority of foreign aid to India from Britain
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focused primarily on education, health, nutritional programs, and water sanitation (Desai).
Though Britain gave the most foreign aid to India at the time, the amount of money it was
providing is relatively low compared to India’s GDP; the foreign aid given by Britain was only
about 0.04% of India’s GDP. Britain’s foreign aid to India actually did have some positive
effects (Rowlatt). The Department for International Development in Britain funded the Business
Innovation Facility that supported companies that expanded other businesses who gave more
opportunities for the poor. Another example is that the British government funded a local NGO
known as the Poorest Areas Civil Society Programme (Rowlatt). It works with women from
marginalized backgrounds, and makes them aware of their rights, education, and livelihood.
And, this NGO is just 1 out of the 60,000 women self-help groups that India has funded
(Rowlatt). However, according to research conducted by the Brookings Institute, British foreign
aid has only done so much and it is recognized that there needs to be more comprehensive social
policies instead of social programs, whereas interviews conducted by BBC on the people in
charge of the NGOs conclude that the end of the British foreign aid will be felt by India in the
long-run (Desai).
India’s economy after its independence from Britain has had its failures and successes.
For about 45 years after its independence, India’s economy was divided into the private and the
public sector. While the private sector controlled business and industries, the government
implemented socialist policies and basically controlled everything such as services ranging from
local transportation to television broadcasting. India worked with the Soviet Union, which at the
time was a close ally, to improve its economy. When Indira Gandhi was in power, her
administration did not pay enough attention to the economy and cared more about how to remain
in power. During this administration, the economy and corruption only worsened. When the
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Soviet Union fell apart, India’s economy weakened even more since the Soviet Union was a
major supplier of low cost oil to India. From 1963 to 1985, India was known to have a strongly
inward-oriented economy; it favored production for domestic goods and its exchange rate was
very over-valued (Gosai). India was at one point receiving a large remittance of foreign
exchange from Indians working in the Middle East but the Gulf War sent many Indians back to
India which hurt India’s foreign reserves. With their foreign reserves about to collapse, India
decided to change it closed-door policies in 1991 (Gosai). The finance minister Manmohan
Singh implemented many economic reforms at the time, such as lowering tax levels and
changing the exchange rate policy, and these reforms allowed for further international
investment. While the major exports were agro, textiles, and gems in 1991, items like software
and automobiles were the major exports in 2016 (CATO). Also, the Indian economy had many
multinational corporations by 2016. In 1991, India feared these multinational corporations
(CATO). Despite these major economic advancements, more than 45% of Indians live on only a
little more than $1 a day and more than 25% of its population live below the national poverty
line (Gosai). Further, Indian health and educational indicators have risen slower than in any other
rapidly growing economy and India’s positon in human development remained unchanged for
two decades. This demonstrates that either economic development has not been enough, or India
requires more than economic development to better the lifestyle for people in rural areas in India.
Some have said that for the Indian economy to grow even further, India should move its
international investment more to the rural areas of India to decrease urbanization and increase
employment in small towns and villages where there are still many inequalities.
Women’s development in India is based on several variables, including the geographic
location, educational status, social status, and age. Government policies such as the Domestic
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Violence Act and the 73rd and 74th amendments to the Constitution which helped women join
politics at the Panchayat level have been able to help empower women, but these are not enough
(Upadhyay). There are several governmental and non-governmental organizations present like
the Women’s Commission that are present to advance these policies, but many are filled with
corruption and lack of financial knowledge to efficiently implement the policies. Due to this,
India has implemented the Right to Information Act in 2005 to increase public transparency and
to hold government officials accountable for their actions (Upadhyay). However, policies will
most likely not suffice to enact true empowerment of women in India due to the social and
religious bias against women in India. In many parts, women are considered to be less than men,
reducing opportunities for access to education and economic possibilities. Women’s security,
decision-making power process, and mobility are three indicators, and all are considered to be
significantly low in India (Upadhyay). For women, working at home is not equivalent to working
at a paid job. For girls, the cost to pay for school, food, and healthcare is much more dependent
on a mother’s salary than the situation for a boy, further rising the importance of women
development. From the NFHS-3 survey, data has demonstrated that 1/3 of the women
interviewed took independent decisions regarding their household and health issues (Upadhyay).
Mobility restrictions have been dependent on how society views women’s rights and the level of
violence and mistreatment toward women. There needs to be more awareness of victims’ rights
among uneducated and rural women so that they can understand their role to address violence
towards them.
Solution to Empower Women through Foreign Aid in India
Despite this proposal on how a country can effectively implement foreign aid, this paper
does not necessarily recommend that a nation should give foreign aid to another. There have
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been so many mistakes with foreign aid in the past that only if a donor is truly sure it has the
capacity to properly develop India through foreign aid, then it is recommended that donor follow
the solution proposed in this paper. Before 1991 when the Indian economy was on the decline
and weak, foreign aid should not have been given to its government because it was not strong
enough to handle that money and properly implement into its system. Due to the enormous
economic growth and development that has occurred in India since 1991, it is fair to say that
though the Indian government is still somewhat corrupt, it is not as immature as it was before
1991, and would be able to handle foreign aid and implement it properly at this time. With its
economy still growing, India has reached a certain measure of stability that will have the
expertise and opportunity to implement foreign aid given in comparison to a country whose
economy is not as stable.
In order for foreign aid to work, the Indian federal government should act as a middle
man between foreign aid from other countries and non-government organizations which can use
that funding and implement the program that the donor intended for. The specifics of the
program need to be very detailed, and explained well to the Indian federal government and the
non-government organization. An in-person meeting in India between sides from the donor
country, the Indian Ministry of Finance, and members of the non-government organizations that
plan to receive the funding is highly recommended. Development programs focused on women
in the past have had a microcredit program that might seem like a suitable situation initially, but
it has not always been properly implemented in the past. From the donor’s perspective, the
program is successful since they are able to give out several loans and about 90% of the loans
have been repaid back in full (Jain). But, from a development expert’s point of view, micro-
credit loans have not been able to pull women out of poverty. Microloans do not address the
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cultural flaws in society that hold women back and these cultural norms will continue to persist
unless women are educated about them (Jain). Since the cultural norms have not allowed women
to participate more in the economy and have led to further violence against women, these norms
must be addressed in a relaxed learning forum.
If foreign aid is given to India, this paper proposes that the aid is given to a program,
organized by Indian non-profit organizations with the help of the Indian and donor governments,
to help women realize their societal and financial potential. An example of an important non-
government organization that is focused on empowering women in India and is reputable enough
to take funding is the Azad Foundation. The Azad foundation has staff members that have
experience in handling funding like Shrinivas Rao, their program director; he has past experience
in rural and urban development and has an MPhil in Economics, demonstrating that strength of
the Azad foundation’s staff (Azad). To demonstrate transparency, the Azad Foundation also
publishes an annual report about their accomplishments. There are non-profit organizations in
India dedicated to helping women and have done great work like the Azad Foundation; with the
help of foreign aid, these organizations can do even better. The foreign aid from a donor country
should work in a project grant format. If the project is successful and the donor country would
like to provide even more funding for similar projects, it could provide an endowment grant that
is designed to advance the non-government organization that is running the project even more so
that it can be more effective (Sundar). This demonstrates that the donor country has more
confidence in the non-government organization’s capabilities (Sundar).
The following ten slums will be chosen as locations for ten individual programs to take
place: Dharavi Slum Mumbai, Bhalswa Slum Delhi, Nochikuppam Slum Chennai, Basanti Slum
Kolkata, Rajendra Nagar Slum Bangalore, Indiramma Nagar Hyderabad, Saroj Nagar Slum
Empower Women 14
Nagpur, Mehbullahpur Slum Lucknow, Satnami Nagar Slum Bhopal, and Parivartan Slum
Ahmadabad. Representatives from any non-government organization that implements this
program must first demonstrate that they have the necessary knowledge of the problems that
women in India are currently facing. To check this, the Ministry of External Affairs in India
should review the past credentials to understand if they have a key understanding of the present
situation; for example, those that will be involved in the gender inequality week of the program
must have a background in social rights and development work in India while those involved in
the financial skills week of the program must have a background in personal finance and
understanding of upcoming job markets in the local area; it would be ideal if the representatives
were women rather than men. There must be a total of ten representatives: five gender equality
representatives and five personal finance representatives. The first step of this program has to be
able to locate impoverished women in that area and incentivize them to join this program. The
representatives must walk through the slums and advertise the program to impoverished women
who are from the ages of 18 to 30. The idea of choosing this range is even though there are
women who are disadvantaged that are below 18 and above 30, this age group is at a mature
enough age where they can take responsibility to change their future, but still have a long life
ahead of them. For initial purposes, it is recommended that only 30 are able to join the program
on a first-come, first-serve basis. 30 seems like an appropriate number because any more might
be too many participants for the directors to give individual attention to each. If it was not a first-
come, first-serve basis, people could potentially bribe their way into the program and this form
of corruption could disrupt its effectiveness, especially in its initial stages. If the representatives
feel it is right by the characteristics pool of applicants, he or she may request from the Ministry
of Finance that the program include a micro-loan aspect where a certain amount is given at the
Empower Women 15
end and this amount will be determined by the Ministry of Finance. Though this seems like a
small program, it is important to first determine whether this program will be successful or not
before expanding it.
The proposed program should be structured so that by the end, the women involved
understand their potential and their inequality in their society. In order to determine its success at
the end, a survey will be handed to the women participants to see if they learned valuable
information from this program. The program should be two-weeks: one week that focuses on
social and economic gender equality in India and one week that focuses on financial skills that
women can learn in order to develop themselves once two weeks are over. The reasoning for
such a short program is to understand the program’s capabilities and potential before expanding
it and to not affect any household or agriculture work. Too long of a program could also
potentially upset elder male members of the household. The structure of each day in the program
will be as follows: the first half will be a lecture style where the representative will explain the
importance of the daily topics; the second half will be a group discussion with a representative
assigned to a group of five women where the participants can talk about their view of the topic
and its application to them. The last day will be a commencement day and a participant will give
a speech on how this program has affected her; the purpose of giving a participant a role in
speaking is to empower them further. The cost of this entire program can be summarized by how
much non-profit organization representatives will need for accommodations in that area during
the program, the amount to rent out a local center for two hours each day of the program, basic
materials like chairs, paper, pencils, and anything else that the non-government organization
feels is necessary to accomplish the task. Some of the money should go to hiring new staff
members like a project engineer whose specific job is to review the projects costs but should not
Empower Women 16
go towards increase in salary of current employees. The topics to discuss on the chart should be
flexible in case the majority of participants are really keen on other topics. The following chart
will explain the topic of each day:
Day Topics to discuss
First Monday Identification of structural societal characteristics that hinder the
development of women and the problems that women face in India
First Tuesday The stereotyped roles that the average Indian women plays in her
society and the goal of how to evolve the mindset of these roles over
time
First Wednesday Explanation of why work can be rewarding in a women’s life and how it
can lead to future social promotion; clarification is given about their
social and health-care rights
First Thursday Review examples of past successful women development programs in
India that are available in the book Building Women’s Capacities, edited
by Ranjani K. Murthy; explain the purpose of commencement and
choose a commencement speaker from the participants
First Friday This session will be split into five 24 minute sections so that each of the
five members in each of the groups can go over with their representative
on how the talks this week have applied to them and how they can use it
in the future
Second Monday Explanation of why it is important to monitor one’s income and save it
for future use
Second Tuesday How to manage one’s finances on a weekly basis
*If the non-profit organization decides to implement a microloan-
portion, it will be explained on this day how the process works
Second Wednesday Examples of locations where the participants can find work in the local
area if they have not so far
Second Thursday This session will be split into five 24 minute sections so that each of the
five members in each of the groups can go over with their representative
on how the talks this week have applied to them and how they can use it
in the future
Second Friday Commencement that will involve handing out diplomas and a
commencement speech by a participant.
It is highly recommended that the donor country, the Indian federal government,
and the non-government organizations all work together to measure the impacts of this program
over the following year by monitoring certain social indicators. Certain indicators include
political and legal awareness, economic and physical security, mobility, purchases, involvement
in major decisions, and freedom from domination by the family (Schuler). All of these indicators
Empower Women 17
can be addressed through keeping in touch with past participants and asking certain questions.
For example, to address the indicator of mobility, a common question would be to ask whether
the respondents have ever gone to various places like the market or the movies and whether they
went there alone. Keeping track of these indicators will give this program a chance to check
itself and see if it’s being effective.
Projects like this have occurred similarly in the past in India. Asmita, a support and
advocacy organization for women based in Hyderabad, had a small field project in two urban
slums in Hyderabad. Many women came to this organization because they were in need of jobs
or they were abused physically by the men in their household. The representatives of Asmita
decided to provide gender training programs to these women that involved group exercises,
discussions, role plays, games and songs. This program included men but they found this
incorporation to be unsuccessful because the men were the ones who would ask to step out of the
rooms during certain segments. The trainers agreed that that it was hard to keep a neutral and
mutually acceptable role in certain situations (Upadhyay). At the end of the program, the
participants were required to fill out an evaluation of the session, and many participants agreed
that the session was helpful and that they learned something. It was reported by the women
themselves that they started to help other women in wife battering cases and they reacted as a
group against discrimination toward women (Upadhyay). There was a clear reduction in women
fighting in front of drinking water taps and rations shops around where the women lived
(Upadhyay). The trainers all mentioned during their analysis that the group exercises and tasks
which forced the participants to think and come up with answers were very effective.
It is necessary to evaluate this entire project and one way to do that is through a SWOT
analysis, measuring the project’s strengths, weaknesses, opportunities, and threats. A strength
Empower Women 18
that this project includes is that it was recommended that the donor country, the Indian federal
government, and non-government organizations meet in person to discuss the goals of this
foreign aid so that each side has a clear understanding of where this foreign aid will go to. This is
the major problem with most foreign aid projects, and as long as each side has a proper
understanding of the goal of this project, there should be positive aspects. Another strength of
this project is this will clearly not cost as much as other development projects have in the past.
Though there is not a clear amount that has been designated to be spent, setting up about ten
development projects for ten cities should not cost as much as importing wheat to develop the
economy. Furthermore, the representatives that have a background in social rights and
development work have knowledge of what Indian women need to develop unlike past
international development workers.
A weakness for this program is that much of it is used at the discretion of the non-
government organization since it knows best how much funding it will need to make this project
successful. In order to minimize this weakness, it is strongly stressed that each side confirms to
each other what their goals are and how it plans to accomplish this project when they meet in
person.
There are several opportunities for this program. It has been analyzed in numerous
studies that in order to truly empower women in developing countries like India, there has to be a
real cultural change that will start to value what women have to offer to society instead of
minimizing their potential (Vasquez). This program will educate women on how to become
stronger in their social context, and how to empower themselves so that society will view them
differently.
Empower Women 19
A threat that could hinder this program’s ability to thrive is that when recruiting women
to join this program, minimal contact should be made with the male head of the household in
case they don’t want their relatives to be participating in this program. There is also the
possibility that if the participant’s involvement in the program is kept a secret, and the male head
eventually finds out, potentially harsh repercussions could occur.
Another method of evaluation is a PEST analysis which measures the political, economic,
social, and technological analysis of this program. From a political point of view, it is important
to remember that a goal of foreign aid reform is that the transfer of money comes with clear
objectives so that the recipient of the aid will not use the funding for political and irrelevant
reasons, stressing again the importance of having an organized meeting initially.
Economically, a major goal of this program is to help women get a job and give them the
knowledge of how to properly use their finances so that they do not have to rely on the male
head of the household. Economic empowerment will be a key indicator in the survey that is
handed at the end of the program. If a micro-loan part is added to the program, it must be done
with caution to make sure that the participants feel they can handle responsibility of paying back
the loan.
The social objective is that after the program, society and the participants themselves
have a new understanding of the potential women can have in society and what women
empowerment means to developing themselves and the world. Social change is key to
empowering women so that discrimination and views toward women can end.
Finally, the technological aspect is not a major concern for this program, but it would be
helpful is the non-profit organization recorded all of the evaluations electronically instead of
through paper-material to ease organization.
Empower Women 20
In conclusion, international development has the potential to grow a country from its
roots and put many out of misery. Unfortunately, history has told the world otherwise. Politicians
and government officials have used foreign aid to an unsustainable level. A goal of foreign aid
has been to promote economic development in another country but how can that goal become a
reality if foreign aid has deteriorated countries in the past? In order to benefit from trading with
other countries due to foreign aid, donors need to realize that this trade will not last long unless
foreign aid is implemented correctly. If foreign aid is implemented correctly, trade can continue
for many years sustainably due to economic growth. India has the potential to grow even further
than it did since 1991 through many ways and foreign aid can act as a source of growth for its
people. There just has to be a strong understanding between the donor and the recipient of
foreign aid that their objectives and plans are parallel. Not only will the solution proposed in this
paper benefit Indian women but will benefit both the donor and recipient of foreign aid as their
economies grow. For donor countries of foreign aid, an opportunity lies ahead to make a
difference not only in the world but in its own country as well. Historically, foreign aid has
rarely been successful and it is time to end this negative notion, so that countless people can live
a better life.
Empower Women 21
Works Cited
Abuzeid, Farah. "Economics: Foreign Aid: Sub-Saharan Africa." Encyclopedia of Women &
Islamic Cultures (n.d.): n. pag. 2009. Web. 31 July 2016.
Alesina, Alberto, and David Dollar. (n.d.): 1-47. June 1998. Web. 31 July 2016.
Azad Foundation. N.p., 2014. Web. 1 Aug. 2016.
Bandyopadhyay, Subhayu, and E. Katarina Vermann. "Foreign Aid." SpringerReference (2013):
329. July-Aug. 2013. Web. 31 July 2016.
Desai, Raj M., and Natasha Ledlie. "Why the End of British Aid to India Won’t Matter."
Brookings. N.p., 21 Nov. 2012. Web. 31 July 2016.
"Economic Geography: Measures of Economic Development." Economic Geography: Measures
of Economic Development. N.p., n.d. Web. 31 July 2016.
Gosai, Dushyant. "History of Economic Growth in India." International Policy Digest. N.p., 24
Apr. 2013. Web. 31 July 2016.
Grover, Drew. "What Is the Demographic Transition Model?" Population Education. N.p., 13
Oct. 2014. Web. 31 July 2016.
Heckert, Jessica, and Madeleine Short Fabic. "Improving Data Concerning Women's
Empowerment in Sub-Saharan Africa." Studies in Family Planning 44.3 (2013): 319-44.
JSTOR. Web. 1 Aug. 2016.
"India Biggest Recipient of US Economic Assistance over 66-year Period: USAID." Dawn. N.p.,
14 July 2015. Web. 31 July 2016.
Empower Women 22
Jain, Devaki. Women, Development, and the UN: A Sixty-year Quest for Equality and Justice.
Bloomington: Indiana UP, 2005. Print.
Kamath, Shyam J. "Foreign Aid and India: Financing the Leviathan State." Foreign Aid and
India: Financing the Leviathan State. N.p., 1992. Web. 31 July 2016.
Maximino, Martin, and Denise-Marie Ordway. "The Relationship between Terrorism and
Economic Growth: Research - Journalist's Resource." Journalists Resource. N.p., 20
Nov. 2015. Web. 31 July 2016.
Murthy, Ranjani K. Building Women's Capacities: Interventions in Gender Transformation. New
Delhi: Sage Publications, 2001. Print.
O'Neil, June E. "THE ROLE OF FOREIGN AID IN DEVELOPMENT." THE ROLE OF
FOREIGN AID IN DEVELOPMENT MAY 1997 (1997): 1-51. CBO. May 1997. Web. 31
July 2016.
Rowlatt, Justin. "UK Ending Aid to India: Where Does the Money Go?" UK Ending Aid to
India: Where Does the Money Go? N.p., 7 Oct. 2015. Web. 31 July 2016.
Schuler, Sidney R., and Elisabeth Rottach. "Women's Empowerment Revisited: A Case Study
from Bangladesh." JSTOR 20 (n.d.): 840-54. Sept. 2010. Web. 1 Aug. 2016.
Sharma, Aradhana. Logics of Empowerment: Development, Gender, and Governance in
Neoliberal India. Minneapolis: U of Minnesota, 2008. Print.
Sharma, R. K. Foreign Aid to India. N.p.: n.p., 1977. Print.
Sundar, Pushpa. Foreign Aid for Indian NGOs: Problem or Solution? New Delhi: Routledge,
2010. Print.
"Twenty-Five Years of Indian Economic Reform: India’s Record and Prospects of Becoming a
Major World Power." CATO. N.p., 22 June 2016.
Empower Women 23
Upadhyay, Reecha. "WOMEN'S EMPOWERMENT IN INDIA." WOMEN'S EMPOWERMENT
IN INDIA An Analytical Overview (n.d.): n. pag. The Asia Foundation. Web. 31 July
2016.
Vasquez, Ian. Telephone interview. 29 June 2016.

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Foreign Aid India Research paper

  • 1. Empower Women 1 A SOLUTION TO EMPOWER INDIAN WOMEN THORUGH FOREIGN AID By Vikram Nandyala ST16-4983 Research and Writing Seminar Charles Bartsch and Dan Ewert University of Florida Gainesville, Florida August 3, 2016
  • 2. Empower Women 2 EXECUTIVE SUMMARY Thesis Statement: If foreign aid is to be given to India in the future since much development is still needed, this paper suggests it be used to empower women in India, something which has proved to develop economies even further and decrease the population growth rate. The purpose of this research project is to inform international development practitioners, such as leaders at the IMF, the World Bank, and USAID, that their methods to implement foreign aid to India have not been effective in the past. There needs to be some major organizational changes to how foreign aid is conducted in other countries, constructed by very meticulous instructions so that no errors can be made. This project is not meant to support the use of foreign aid in any ways because it is a very complex process, but rather to provide a solution if a country does want to provide foreign aid to India. Another point that this project is trying to stress is that foreign aid in the past to India was primarily focused on developing the agricultural economy. Now that India’s economy has developed so much, foreign aid does not necessarily have to be spent directly on the economy to grow it even further; developing women in the country could be the next step to improving the country, economically and socially. Methodology: In order to explain why foreign aid should be directed to empower Indian women, the paper is split into three parts. The first section will provide background on foreign aid and economic development in general, while the second section will focus more on how foreign aid has impacted Indian economic and women’s development in the past. The third section will be a solution on how to properly implement foreign aid in India to empower women and will include a SWOT and PEST Analysis. Finally, the paper will conclude with an explanation on the importance of proper implementation of foreign aid and its effects. Resources: The resources that I plan to use in my research project are the following: educational and governmental website articles, books that were collected from the American University Library and the Georgetown University library, JSTOR articles, notes taken at a policy forum at the CATO Institute known as the policy forum of twenty-five years of Indian Economic Reform: India’s Record and Prospects of Becoming a Major World Problem where experts like Swaminathan S. Anklesaria Aiyar and Ashley Tellis talked about India’s prospects in the future, and an informational interview that was conducted with Ian Vasquez, a director at the CATO Institute who recently moderated the same CATO institute policy forum that I attended. Conclusion: International development and foreign aid could be a beautiful thing that can develop an entire country and possibly eradiate many third-world problems. Unfortunately, though, people have taken abuse of the system and tried to implement it for their benefits or if they truly did it for the better of people, they did not take detailed steps to implement it properly; for example, American officials did monitor international development in India but lived in the posh areas and didn’t experience its effect on the poorer areas. Foreign aid has known to fail numerous times in the past but if a nation or organization does want to work to develop a country that has an enormous amount of potential, then this paper would recommend that they follow the solution that is outlined. If India developed so much since 1991 which is when India’s economy has been known to grow, their future can be even brighter if foreign aid was implemented properly.
  • 3. Empower Women 3 A SOLUTION TO EMPOWER INDIAN WOMEN THORUGH FOREIGN AID From 1946 to 2012, India received about $65 billion from the United States alone, and very little of this money has had a positive impact on India (Dawn). Though the Indian economy has grown since foreign aid was first given to India, this growth cannot been attributed to foreign aid. Instead, what contributed the most to the success of Indian economic development since 1991 was the movement from socialist to liberalization and privatization policies, which resulted in more foreign investment rather than foreign aid. Despite the booming economy, there are still many social problems including poverty and a large population growth rate. If foreign aid is to be given to India in the future since much development is still needed, this paper suggests it be used to empower women in India, something which has proved to develop economies even further and decrease the population growth rate. This paper is divided into three main components. The first section will provide background on foreign aid and economic development in general, while the second section will focus more on how foreign aid has impacted Indian economic and women’s development in the past. The third section will be a solution on how to properly implement foreign aid in India to empower women and will include a SWOT and PEST Analysis. Finally, the paper will conclude with an explanation on the importance of proper implementation of foreign aid and its effects. Background on Foreign Aid and Economic Development Foreign aid is a grant or loan from a country or organization given to a developing country. Since many developing countries do not have enough resources for such public goods as education, foreign investors become initially apprehensive about investing in a country that is not able to develop itself. Foreign aid provides an initial funding to jumpstart support for a country’s public goods, otherwise known as the ‘big push’ theory (O’Neil). The reasons to give foreign aid
  • 4. Empower Women 4 are more complicated than genuinely trying to help another country grow. For a country like the United States, a main purpose of promoting foreign aid has been to enhance national security by attempting to minimize international threats. In a study done by Seung-Whan Choi of the University of Illinois, Chicago, economic growth has been shown to lower levels of international and domestic terrorist violence (Martin). In addition, many countries want to develop other countries to grow local economies to allow them to become trade partners. While the realist theory believes that foreign aid is given with the intent of strategic intentions like security, the non-realist theory is more concerned with the economic development of the donor country, and that foreign aid works towards building the donor’s economy (O’Neil). Foreign aid has been widely criticized as an ineffective policy that has done more damage to a country than actually help. Governments in many developing countries are still very corrupt, so much of the aid is used for unproductive activities. In the past, while the purpose of foreign aid might have been to increase economic development in a rural region, beginning politicians have used that foreign aid for their own political gain instead (O’Neil). Proper governance must first be present in a country before it should accept any foreign aid to prevent waste of money. Foreign aid has also been known to be fungible in the sense that funded projects already have enough resources and the government will use additional funding for different projects (Abuzeid 2009). If the donor and recipient countries have the same preferences, then the fungibility of foreign aid is not a problem but becomes one if their mindsets are not the same. If a recipient of foreign aid uses the aid amount as a pure supplement to its resources, the aid becomes fungible and therefore should be used for its intended purpose. Foreign aid will also become not fungible if there is an effective public expenditure monitoring process. A more effective way in avoiding fungible foreign aid could be to give direct budgetary support that is based on mutually agreed
  • 5. Empower Women 5 outcomes with certain indicators. A study by Alberto Alesina and David Dollar confirmed that the recipient country has more control over where the funding goes instead of the donor country, and if that recipient country has a corrupt government, foreign aid will most likely not be effective (Alesina 24). This counter-productive behavior has been known to worsen the country’s economy and has raised need for more foreign aid. Defining and measuring development has been a difficult task. According to the World Bank, countries are rated on their GNP levels while emphasizing that indicators like education levels, health care, and food production are measurements that should also be considered (Heckert 329). The United Nations Development Programme built a human development indicator which gives a value to each country depending on life expectancy, education, and real GDP per capita (Economic Geography). It has been proven that even minor differences in the economic development rate have resulted in different standards of living for people in countries. For example, citizens of developed countries generally live in a community that has less crime than those living in a developing county (Grover 2014). Economic development has actually been known to even have an effect on the population rate. The demographic transition model explains that when an economy develops, the population rate of that country will eventually decrease over time. Initially, when an economy develops, the death rate will drop due to all the medical advances in the country, but the birth rate will sequentially decrease because the women will choose to have fewer children to focus more on their jobs (Grover 2014). Though there is the risk that the birth rate can become lower than the death rate as the economy becomes very developed (as in the case of Japan), the concern of a rapidly growing global population is more important than the risk of a drop in the human population. Developing women is an important step to economic
  • 6. Empower Women 6 growth that many countries realize during their development process. The World Bank reported, “we need more of it (women development) in those areas that support shared economic growth…financial services will profit not only women, but also men, children, and societies, as a whole, as economies grow and poverty is reduced” (Sharma 21). Sectors like infrastructure and agriculture that drive economic development implicitly exclude women in many countries and this indirectly hinders the economy from reaching its full capacity. In order for women to become more integrated into the economy, not only do they need more access to land, labor, and credit markets, but the social culture in the country has to recognize women as equal to men. Past Foreign Aid, Economic Growth, and Women Empowerment in India India has been a common recipient for foreign aid in the past from several different countries. Many countries believed in the potential growth that eventually occurred after the economic reforms were implemented and wanted to give foreign aid to start that growth. From 1960 to 1970, while the United States sent less than $1 billion in foreign aid to countries like Bangladesh and Iraq, foreign aid to India grew from $2 billion to $5 billion (Bandyopadhyay 329). The United States saw India as a state that had a legitimate and feasible path to development, and thus, decided to give it more funding. From 1951 to 1971, about 56% of foreign aid to India came from the United States, with the second largest provider being the World Bank which gave about 12% of India’s foreign aid; the United States is also the largest contributor to the World Bank (Sharma 275). The United States gave more than $1 billion to India as foreign aid but India did not use all of that money (Sharma 273). Foreign aid to India from the United States started in 1951 with the intent that the money would be spent on 2 million metric tons of wheat (Sharma 272). The United States gave foreign aid to India through the
  • 7. Empower Women 7 United States Agency for International Development, the United States Export-Import Bank, and the Public Law-480 (Food for Peace Programme). A major critique of the United States foreign aid to India was that the United States thought that it knew what was best for India. The American experts did not have the knowledge of what were the needs of the Indian people in terms of their cultural, social, and economic goals. Unfortunately the attempt to be omni-present in every country did not always work. Most of the American experts who lived in India to monitor the foreign aid were staying in affluent areas in India, not seeing what happened in the lower-income areas and the true effect of foreign aid on India (Sharma 127). When the United States first started to give foreign aid, India did not have a stable government and it was much more corrupt than it is today, making it incapable of managing any foreign funds that it received. Often, India had to pay for consulting services from the United States which were conditions attached to the development program (Sharma 278). These consulting service prices were much higher than the internationally competitive prices. Along with other payments that India had to pay due to further conditions of aid, India had to devalue its rupee in 1966. From 1960 to 1970, India’s account balance was generally positive, meaning that its account deficits were due to a lack of exports (Sharma 278). Since there was a restraint on foreign investment due to India’s socialist policies at the time and their decline in foreign exchange reserves, foreign aid was responsible for keeping that amount of imports higher than it was supposed to be. If foreign aid was not being spent at that time, India’s excessive amount in imports could have been much lower and the economy could have done better. In addition, before 1956, India’s food grain prices had been stable. However, as demand started to increase for food and with India’s foreign reserves falling rapidly, India made an agreement with the United States for even more assistance that involved receiving 50 tons of food grain under
  • 8. Empower Women 8 the P.L. 480 (Kamath). When all of this free food grain came from the United States, food prices dropped immediately, and many farmers decreased their amount of acreage planted in wheat and competing cereals (Kamath). As a country whose economy at the time focused on agriculture, India’s immediate future seemed bleak. This food aid had an inflationary effect on the Indian economy as well. Most food shipments to India were sent in exchange for rupees which started to grow overwhelmingly in Indian banks and covered the local United States government expenses (Kamath). In order to make further payments to the American local government, the Indian bank decided to issue securities (Kamath). These payments were liquidized in the sense that the securities that were converted into Indian public debt and the United States further gave that money to the Indian public sector through grants and loans (Kamath). B.R. Shenoy, a scholar of the Indian economy, estimated that this process was responsible for about 35% of debt financing from 1962 to 1971, and increased the inflation rate by about 10% per year (Kamath). Results have shown, however, that foreign aid did not necessarily lead to a reduction in tax revenue for the government. From 1970 to 1994, it is noticeable that development spending has increased from 3.83% of GDP to 4.40% while foreign aid has decreased 1.91% of GDP to 1.27%, confirming that foreign aid has not been effective in the past, so India recognized its futility and decided to take development matters into its own hands (Kamath). In 2012, Britain announced it would stop providing foreign aid to India in 2015 (Rowlatt). At the time, Britain was considered the largest donor to India in foreign aid. Britain’s reasoning was that India’s economy has developed so much that it no longer needed foreign aid. In fact, India has started its own donor program in the past decade. Despite Britain’s reasoning, it is fair to say that there is still a considerable amount of poverty and third-world problems no matter how much its economy has grown. The majority of foreign aid to India from Britain
  • 9. Empower Women 9 focused primarily on education, health, nutritional programs, and water sanitation (Desai). Though Britain gave the most foreign aid to India at the time, the amount of money it was providing is relatively low compared to India’s GDP; the foreign aid given by Britain was only about 0.04% of India’s GDP. Britain’s foreign aid to India actually did have some positive effects (Rowlatt). The Department for International Development in Britain funded the Business Innovation Facility that supported companies that expanded other businesses who gave more opportunities for the poor. Another example is that the British government funded a local NGO known as the Poorest Areas Civil Society Programme (Rowlatt). It works with women from marginalized backgrounds, and makes them aware of their rights, education, and livelihood. And, this NGO is just 1 out of the 60,000 women self-help groups that India has funded (Rowlatt). However, according to research conducted by the Brookings Institute, British foreign aid has only done so much and it is recognized that there needs to be more comprehensive social policies instead of social programs, whereas interviews conducted by BBC on the people in charge of the NGOs conclude that the end of the British foreign aid will be felt by India in the long-run (Desai). India’s economy after its independence from Britain has had its failures and successes. For about 45 years after its independence, India’s economy was divided into the private and the public sector. While the private sector controlled business and industries, the government implemented socialist policies and basically controlled everything such as services ranging from local transportation to television broadcasting. India worked with the Soviet Union, which at the time was a close ally, to improve its economy. When Indira Gandhi was in power, her administration did not pay enough attention to the economy and cared more about how to remain in power. During this administration, the economy and corruption only worsened. When the
  • 10. Empower Women 10 Soviet Union fell apart, India’s economy weakened even more since the Soviet Union was a major supplier of low cost oil to India. From 1963 to 1985, India was known to have a strongly inward-oriented economy; it favored production for domestic goods and its exchange rate was very over-valued (Gosai). India was at one point receiving a large remittance of foreign exchange from Indians working in the Middle East but the Gulf War sent many Indians back to India which hurt India’s foreign reserves. With their foreign reserves about to collapse, India decided to change it closed-door policies in 1991 (Gosai). The finance minister Manmohan Singh implemented many economic reforms at the time, such as lowering tax levels and changing the exchange rate policy, and these reforms allowed for further international investment. While the major exports were agro, textiles, and gems in 1991, items like software and automobiles were the major exports in 2016 (CATO). Also, the Indian economy had many multinational corporations by 2016. In 1991, India feared these multinational corporations (CATO). Despite these major economic advancements, more than 45% of Indians live on only a little more than $1 a day and more than 25% of its population live below the national poverty line (Gosai). Further, Indian health and educational indicators have risen slower than in any other rapidly growing economy and India’s positon in human development remained unchanged for two decades. This demonstrates that either economic development has not been enough, or India requires more than economic development to better the lifestyle for people in rural areas in India. Some have said that for the Indian economy to grow even further, India should move its international investment more to the rural areas of India to decrease urbanization and increase employment in small towns and villages where there are still many inequalities. Women’s development in India is based on several variables, including the geographic location, educational status, social status, and age. Government policies such as the Domestic
  • 11. Empower Women 11 Violence Act and the 73rd and 74th amendments to the Constitution which helped women join politics at the Panchayat level have been able to help empower women, but these are not enough (Upadhyay). There are several governmental and non-governmental organizations present like the Women’s Commission that are present to advance these policies, but many are filled with corruption and lack of financial knowledge to efficiently implement the policies. Due to this, India has implemented the Right to Information Act in 2005 to increase public transparency and to hold government officials accountable for their actions (Upadhyay). However, policies will most likely not suffice to enact true empowerment of women in India due to the social and religious bias against women in India. In many parts, women are considered to be less than men, reducing opportunities for access to education and economic possibilities. Women’s security, decision-making power process, and mobility are three indicators, and all are considered to be significantly low in India (Upadhyay). For women, working at home is not equivalent to working at a paid job. For girls, the cost to pay for school, food, and healthcare is much more dependent on a mother’s salary than the situation for a boy, further rising the importance of women development. From the NFHS-3 survey, data has demonstrated that 1/3 of the women interviewed took independent decisions regarding their household and health issues (Upadhyay). Mobility restrictions have been dependent on how society views women’s rights and the level of violence and mistreatment toward women. There needs to be more awareness of victims’ rights among uneducated and rural women so that they can understand their role to address violence towards them. Solution to Empower Women through Foreign Aid in India Despite this proposal on how a country can effectively implement foreign aid, this paper does not necessarily recommend that a nation should give foreign aid to another. There have
  • 12. Empower Women 12 been so many mistakes with foreign aid in the past that only if a donor is truly sure it has the capacity to properly develop India through foreign aid, then it is recommended that donor follow the solution proposed in this paper. Before 1991 when the Indian economy was on the decline and weak, foreign aid should not have been given to its government because it was not strong enough to handle that money and properly implement into its system. Due to the enormous economic growth and development that has occurred in India since 1991, it is fair to say that though the Indian government is still somewhat corrupt, it is not as immature as it was before 1991, and would be able to handle foreign aid and implement it properly at this time. With its economy still growing, India has reached a certain measure of stability that will have the expertise and opportunity to implement foreign aid given in comparison to a country whose economy is not as stable. In order for foreign aid to work, the Indian federal government should act as a middle man between foreign aid from other countries and non-government organizations which can use that funding and implement the program that the donor intended for. The specifics of the program need to be very detailed, and explained well to the Indian federal government and the non-government organization. An in-person meeting in India between sides from the donor country, the Indian Ministry of Finance, and members of the non-government organizations that plan to receive the funding is highly recommended. Development programs focused on women in the past have had a microcredit program that might seem like a suitable situation initially, but it has not always been properly implemented in the past. From the donor’s perspective, the program is successful since they are able to give out several loans and about 90% of the loans have been repaid back in full (Jain). But, from a development expert’s point of view, micro- credit loans have not been able to pull women out of poverty. Microloans do not address the
  • 13. Empower Women 13 cultural flaws in society that hold women back and these cultural norms will continue to persist unless women are educated about them (Jain). Since the cultural norms have not allowed women to participate more in the economy and have led to further violence against women, these norms must be addressed in a relaxed learning forum. If foreign aid is given to India, this paper proposes that the aid is given to a program, organized by Indian non-profit organizations with the help of the Indian and donor governments, to help women realize their societal and financial potential. An example of an important non- government organization that is focused on empowering women in India and is reputable enough to take funding is the Azad Foundation. The Azad foundation has staff members that have experience in handling funding like Shrinivas Rao, their program director; he has past experience in rural and urban development and has an MPhil in Economics, demonstrating that strength of the Azad foundation’s staff (Azad). To demonstrate transparency, the Azad Foundation also publishes an annual report about their accomplishments. There are non-profit organizations in India dedicated to helping women and have done great work like the Azad Foundation; with the help of foreign aid, these organizations can do even better. The foreign aid from a donor country should work in a project grant format. If the project is successful and the donor country would like to provide even more funding for similar projects, it could provide an endowment grant that is designed to advance the non-government organization that is running the project even more so that it can be more effective (Sundar). This demonstrates that the donor country has more confidence in the non-government organization’s capabilities (Sundar). The following ten slums will be chosen as locations for ten individual programs to take place: Dharavi Slum Mumbai, Bhalswa Slum Delhi, Nochikuppam Slum Chennai, Basanti Slum Kolkata, Rajendra Nagar Slum Bangalore, Indiramma Nagar Hyderabad, Saroj Nagar Slum
  • 14. Empower Women 14 Nagpur, Mehbullahpur Slum Lucknow, Satnami Nagar Slum Bhopal, and Parivartan Slum Ahmadabad. Representatives from any non-government organization that implements this program must first demonstrate that they have the necessary knowledge of the problems that women in India are currently facing. To check this, the Ministry of External Affairs in India should review the past credentials to understand if they have a key understanding of the present situation; for example, those that will be involved in the gender inequality week of the program must have a background in social rights and development work in India while those involved in the financial skills week of the program must have a background in personal finance and understanding of upcoming job markets in the local area; it would be ideal if the representatives were women rather than men. There must be a total of ten representatives: five gender equality representatives and five personal finance representatives. The first step of this program has to be able to locate impoverished women in that area and incentivize them to join this program. The representatives must walk through the slums and advertise the program to impoverished women who are from the ages of 18 to 30. The idea of choosing this range is even though there are women who are disadvantaged that are below 18 and above 30, this age group is at a mature enough age where they can take responsibility to change their future, but still have a long life ahead of them. For initial purposes, it is recommended that only 30 are able to join the program on a first-come, first-serve basis. 30 seems like an appropriate number because any more might be too many participants for the directors to give individual attention to each. If it was not a first- come, first-serve basis, people could potentially bribe their way into the program and this form of corruption could disrupt its effectiveness, especially in its initial stages. If the representatives feel it is right by the characteristics pool of applicants, he or she may request from the Ministry of Finance that the program include a micro-loan aspect where a certain amount is given at the
  • 15. Empower Women 15 end and this amount will be determined by the Ministry of Finance. Though this seems like a small program, it is important to first determine whether this program will be successful or not before expanding it. The proposed program should be structured so that by the end, the women involved understand their potential and their inequality in their society. In order to determine its success at the end, a survey will be handed to the women participants to see if they learned valuable information from this program. The program should be two-weeks: one week that focuses on social and economic gender equality in India and one week that focuses on financial skills that women can learn in order to develop themselves once two weeks are over. The reasoning for such a short program is to understand the program’s capabilities and potential before expanding it and to not affect any household or agriculture work. Too long of a program could also potentially upset elder male members of the household. The structure of each day in the program will be as follows: the first half will be a lecture style where the representative will explain the importance of the daily topics; the second half will be a group discussion with a representative assigned to a group of five women where the participants can talk about their view of the topic and its application to them. The last day will be a commencement day and a participant will give a speech on how this program has affected her; the purpose of giving a participant a role in speaking is to empower them further. The cost of this entire program can be summarized by how much non-profit organization representatives will need for accommodations in that area during the program, the amount to rent out a local center for two hours each day of the program, basic materials like chairs, paper, pencils, and anything else that the non-government organization feels is necessary to accomplish the task. Some of the money should go to hiring new staff members like a project engineer whose specific job is to review the projects costs but should not
  • 16. Empower Women 16 go towards increase in salary of current employees. The topics to discuss on the chart should be flexible in case the majority of participants are really keen on other topics. The following chart will explain the topic of each day: Day Topics to discuss First Monday Identification of structural societal characteristics that hinder the development of women and the problems that women face in India First Tuesday The stereotyped roles that the average Indian women plays in her society and the goal of how to evolve the mindset of these roles over time First Wednesday Explanation of why work can be rewarding in a women’s life and how it can lead to future social promotion; clarification is given about their social and health-care rights First Thursday Review examples of past successful women development programs in India that are available in the book Building Women’s Capacities, edited by Ranjani K. Murthy; explain the purpose of commencement and choose a commencement speaker from the participants First Friday This session will be split into five 24 minute sections so that each of the five members in each of the groups can go over with their representative on how the talks this week have applied to them and how they can use it in the future Second Monday Explanation of why it is important to monitor one’s income and save it for future use Second Tuesday How to manage one’s finances on a weekly basis *If the non-profit organization decides to implement a microloan- portion, it will be explained on this day how the process works Second Wednesday Examples of locations where the participants can find work in the local area if they have not so far Second Thursday This session will be split into five 24 minute sections so that each of the five members in each of the groups can go over with their representative on how the talks this week have applied to them and how they can use it in the future Second Friday Commencement that will involve handing out diplomas and a commencement speech by a participant. It is highly recommended that the donor country, the Indian federal government, and the non-government organizations all work together to measure the impacts of this program over the following year by monitoring certain social indicators. Certain indicators include political and legal awareness, economic and physical security, mobility, purchases, involvement in major decisions, and freedom from domination by the family (Schuler). All of these indicators
  • 17. Empower Women 17 can be addressed through keeping in touch with past participants and asking certain questions. For example, to address the indicator of mobility, a common question would be to ask whether the respondents have ever gone to various places like the market or the movies and whether they went there alone. Keeping track of these indicators will give this program a chance to check itself and see if it’s being effective. Projects like this have occurred similarly in the past in India. Asmita, a support and advocacy organization for women based in Hyderabad, had a small field project in two urban slums in Hyderabad. Many women came to this organization because they were in need of jobs or they were abused physically by the men in their household. The representatives of Asmita decided to provide gender training programs to these women that involved group exercises, discussions, role plays, games and songs. This program included men but they found this incorporation to be unsuccessful because the men were the ones who would ask to step out of the rooms during certain segments. The trainers agreed that that it was hard to keep a neutral and mutually acceptable role in certain situations (Upadhyay). At the end of the program, the participants were required to fill out an evaluation of the session, and many participants agreed that the session was helpful and that they learned something. It was reported by the women themselves that they started to help other women in wife battering cases and they reacted as a group against discrimination toward women (Upadhyay). There was a clear reduction in women fighting in front of drinking water taps and rations shops around where the women lived (Upadhyay). The trainers all mentioned during their analysis that the group exercises and tasks which forced the participants to think and come up with answers were very effective. It is necessary to evaluate this entire project and one way to do that is through a SWOT analysis, measuring the project’s strengths, weaknesses, opportunities, and threats. A strength
  • 18. Empower Women 18 that this project includes is that it was recommended that the donor country, the Indian federal government, and non-government organizations meet in person to discuss the goals of this foreign aid so that each side has a clear understanding of where this foreign aid will go to. This is the major problem with most foreign aid projects, and as long as each side has a proper understanding of the goal of this project, there should be positive aspects. Another strength of this project is this will clearly not cost as much as other development projects have in the past. Though there is not a clear amount that has been designated to be spent, setting up about ten development projects for ten cities should not cost as much as importing wheat to develop the economy. Furthermore, the representatives that have a background in social rights and development work have knowledge of what Indian women need to develop unlike past international development workers. A weakness for this program is that much of it is used at the discretion of the non- government organization since it knows best how much funding it will need to make this project successful. In order to minimize this weakness, it is strongly stressed that each side confirms to each other what their goals are and how it plans to accomplish this project when they meet in person. There are several opportunities for this program. It has been analyzed in numerous studies that in order to truly empower women in developing countries like India, there has to be a real cultural change that will start to value what women have to offer to society instead of minimizing their potential (Vasquez). This program will educate women on how to become stronger in their social context, and how to empower themselves so that society will view them differently.
  • 19. Empower Women 19 A threat that could hinder this program’s ability to thrive is that when recruiting women to join this program, minimal contact should be made with the male head of the household in case they don’t want their relatives to be participating in this program. There is also the possibility that if the participant’s involvement in the program is kept a secret, and the male head eventually finds out, potentially harsh repercussions could occur. Another method of evaluation is a PEST analysis which measures the political, economic, social, and technological analysis of this program. From a political point of view, it is important to remember that a goal of foreign aid reform is that the transfer of money comes with clear objectives so that the recipient of the aid will not use the funding for political and irrelevant reasons, stressing again the importance of having an organized meeting initially. Economically, a major goal of this program is to help women get a job and give them the knowledge of how to properly use their finances so that they do not have to rely on the male head of the household. Economic empowerment will be a key indicator in the survey that is handed at the end of the program. If a micro-loan part is added to the program, it must be done with caution to make sure that the participants feel they can handle responsibility of paying back the loan. The social objective is that after the program, society and the participants themselves have a new understanding of the potential women can have in society and what women empowerment means to developing themselves and the world. Social change is key to empowering women so that discrimination and views toward women can end. Finally, the technological aspect is not a major concern for this program, but it would be helpful is the non-profit organization recorded all of the evaluations electronically instead of through paper-material to ease organization.
  • 20. Empower Women 20 In conclusion, international development has the potential to grow a country from its roots and put many out of misery. Unfortunately, history has told the world otherwise. Politicians and government officials have used foreign aid to an unsustainable level. A goal of foreign aid has been to promote economic development in another country but how can that goal become a reality if foreign aid has deteriorated countries in the past? In order to benefit from trading with other countries due to foreign aid, donors need to realize that this trade will not last long unless foreign aid is implemented correctly. If foreign aid is implemented correctly, trade can continue for many years sustainably due to economic growth. India has the potential to grow even further than it did since 1991 through many ways and foreign aid can act as a source of growth for its people. There just has to be a strong understanding between the donor and the recipient of foreign aid that their objectives and plans are parallel. Not only will the solution proposed in this paper benefit Indian women but will benefit both the donor and recipient of foreign aid as their economies grow. For donor countries of foreign aid, an opportunity lies ahead to make a difference not only in the world but in its own country as well. Historically, foreign aid has rarely been successful and it is time to end this negative notion, so that countless people can live a better life.
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  • 23. Empower Women 23 Upadhyay, Reecha. "WOMEN'S EMPOWERMENT IN INDIA." WOMEN'S EMPOWERMENT IN INDIA An Analytical Overview (n.d.): n. pag. The Asia Foundation. Web. 31 July 2016. Vasquez, Ian. Telephone interview. 29 June 2016.