Friday, April 09, 2010

Band Aid

clipped from hotair.com
Do massive donations of cash as aid to poor nations allow them to focus on structural improvements and increased spending on health? 

“When an aid official thinks he is helping a low-income African patient avoid charges at a health clinic, in reality, he is paying for a shopping trip to Paris for a government minister and his wife,” said Philip Stevens, of the London-based think tank International Policy Network. He was not linked to the study.


What can we learn from this study that we really should have already known?


  1. Money is fungible – Giving block grants to a state for one purpose doesn’t mean that the purpose gets more money.  It allows the state to divert its already-committed resources to other purposes.  We’ve learned that here in the US with Porkulus block grants to states.  Without accountability, that money can go anywhere and either directly or indirectly feed the corruption at the heart of Africa’s problems.

  2. Corruption is the root cause of nationwide poverty