Monday, April 24, 2017

Foreign Aid

I’ve worked in foreign aid for 50 years—Trump is right to end it, even if his reasons are wrong
Excerpt: Aid has resulted in remarkably few significant shifts in economic growth and poverty reduction. The truth is much of aid’s promise has come up empty. It is striking that the aid establishment has not dug deeper into the reasons why. It has not listened to four decades of trenchant critiques, many of them by insiders. Countless articles and at least thirty widely read books about aid (such as Michael Maren’s 1997 The Road to Hell: The Ravaging Effects of Foreign Aid and International Charity, or William Easterly’s 2006 The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good, or Dambisa Moyo’s 2009 Dead Aid), have pointed out that outsiders cannot “nation build,” that development must be led by the people in the poor countries themselves, that dependency has been one of the few tangible results of the trillions we have spent, that the complexity and the context-specific nature of each country’s politics, social structure, and culture cannot be easily understood by outsiders and thus the short term three to five year aid “project” is a wildly inappropriate vehicle for aid, and so on. Moreover, a number of highly respected historians and economists like David S. Landes and J.K. Galbraith have pointed out that aid simply cannot produce development… The main reason there is so little change is that aid has become an industry, and is rapidly moving towards what a present day Eisenhower might call an “aid-industrial complex,” an interlocking set of players (NGOs, government agencies, and private contractors, among others) who have largely closed off outside criticism and internal learning and become self-referential and entrenched. The main goal of this complex is to keep the money flowing…

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