Recent announcement by UK about the ring-fencing of its aid to foriegn countries has come as jolt to India. Andrew Mitchell, British Secretary of State for International Development, expressed his shock about the embezzlement of funds directed to Sarva Shiksha Abhiyan project in India. It's said around 30% of foreign funds received by India is from UK.
It's difficult to make authorities accountable for the foreign aid, as they are not channelled through state's structures of governance. Nevertheless, if a growing power like India is pulled up for misuse of funds and subsequent corruption, it harms its image as a welfare state in international forums.
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