Explaining AidTrade

The challenge for NGO’s and aid initiatives in the developing world is that it creates dependency on foreign donors and do not tackle the reason why the problems are there. These organizations tend to react to problems rather than solve them. AidTrade® seeks to stand with leaders of integrity, to identify the problems and to find creative solutions by assisting them in becoming entrepreneurs and successful business people.

Dumping used goods and shipping food to Africa for example destroys the trade and local industries that are created by local entrepreneurs with limited resources to cater for these needs. Sending shoes or Flip-flops to Africa does not solve structural problems. A child’s problem will be solved for three months and will then leave them begging after the shoe is worn out. There is a need for sustainable solutions that solve the structural problems and not some temporary remedy. The best option is to provide in technological know-how or even relocate manufacturing to Africa so that the shoe could be produced with local materials, creating jobs, and solving the ongoing problems.

When it comes to the stimulation of business and industry in developing countries, the focus so far often has been on the lowest level of the economic ladder. Good examples are ‘Fair Trade’, which aims at delivering local farmers a small increase in their profits and ‘Micro Credit’, an initiative providing entrepreneurs with small amounts of credit to facilitate setting up local businesses. The interests of local communities however in many occasions are not being fully represented at structural enterprises like exploration, industry and commodities trading.

A growing number of individuals, organizations and governments are starting to endorse the opinion that the solution can be found in ‘aid to trade’; using aid money and government subsidies to empower people in local communities to become entrepreneurs and successful business people. Not only on a ‘micro-level’ but also as equal partners in a global market.