Aid Allocation double whammy fail whale

Two related pieces I found on twitter point out that we haven’t perfected aid delivery by a long shot.

First, Owen Barder at CGD points out that the percentage of aid going to the poorest countries is actually falling.

Perhaps not so amazingly, places like the EU only allocate 27% of its aid to the group of low income countries. The WB at least manages to get 55% of its official development assistance there.

Then the redoubtable Ryan Briggs shows that, inside of poor countries, aid does not flow to the poorest people in those countries!

Ryan’s paper studies “a two-year sample of geolocated aid projects from two multilateral donors to 17 African countries containing a total of 195 regions” and contains the following awesome quote from PT Bauer:

“…foreign aid is a process by which poor people in rich countries help rich people in poor countries.”






One thought on “Aid Allocation double whammy fail whale

  1. the EU spreads a lot of money from its richer states to its poorer, including countries on the path to joining. Some of that gets accounted for as foreign aid (i.e. money to Turkey). If it was given a more realistic label, and put in the same pot as money to Ireland and Poland etc., what would be left (which might be thought of as development aid) is more pro-poor.

    the Briggs paper is great, but if the World Bank is thinking where to put things like power plants, ports, railways etc. I am not sure the countries poorest districts are the right answer even if eradicating poverty is your goal. You have to put stuff where the economy needs it.

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