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.”






Aid Eclipsed

Remittances are larger than official development assistance. According to this BBC piece, remittances in 2010 were $51.8 billion, while ODA was $43 billion. The author of the cited study argues that this inequality holds world-wide, saying that overall remittances are two and a half times greater than ODA ($350 billion vs. $150 billion).

Imagine how big remittances could be if rich country immigration policies were less miserly!