The impact of foreign aid on development …
by Tim Wilson, April 4, 2011
The contribution, whether positive or negative, of foreign aid to helping developing countries lift themselves out of poverty has always been somewhat controversial.
But it is reaching a new high as there is so little evidence showing its efficacy over the years, especially when it is not targeted.
Increasingly the evidence appears to be that private aid support through micro-finance and equivalent schemes is far more effective because rather than seeking to lift people out of poverty it helps them participate in a marketplace and enables them to lift themselves up.
With the US House of Representatives no voting to cut the aid budget this piece from the Wall Street Journal grabbed our attention because it argued aid money was increasingly something for elites to redistribute at a whim. There’s some truth to that. But it all depends on whose giving it and what it is being used for. We recommend a read.
- Tim Wilson's Blog
- Permalink
- Categories: Blog Posts
- No Comments
