Monday, November 2, 2009
Germany to Stop Foreign Aid to China
In his first controversial move as German development minister Dirk Niebel has decided that Germany will not longer be giving foreign aid to China and India. Niebel has stated that the purpose of foreign aid was to help battle poverty and he has noted that neither of the economic juggernauts need the aid that they have been receiving. In 2007 Germany gave China 67.5 million Euros and in 2008 gave India 84 million Euros. Although this move will free up monetary aid for other developing nations this move could prove disastrous as it is very possible that China and/or India will take offense to these actions and retaliate against Germany. We will have to wait and see how China and India will react to Niebel's new policy.