Why give borrowed money as foreign aid?

THE comment by minister of state Peter Power to the effect that the amount spent on the Irish aid programme is equivalent to what the Government will borrow over 10 days is the weakest possible argument for this programme in present circumstances.

The Government has generously provided €5.8 billion in Irish aid since the turn of the century, while there was the illusion of prosperity. Now circumstances are radically different and there is a compelling need to use resources efficiently, productively and creatively. We, as a nation, need to cut our cloth to suit our circumstances and adopt priorities that match these.

There is, for example, something wholly irrational about closing embassies that are a potential conduit of investment, trade and reputation recovery while spending €600 million of borrowed money to be recognised as the sixth largest donor of aid in the world, in per capita terms.