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July 20, 2007
Aid to Poor Countries: Money Down the Drain
Two economists who left the International Monetary Fund within the last year, Raghuram Rajan and Arvind Subramanian, have admitted the obvious: aid to poor countries has no significant effect on the economic growth required to cure poverty.
Echoing liberals, the authors write:
There is a moral imperative to this question: it is a travesty for so many countries to remain poor if a relatively small transfer of resources from rich countries could set them on the path to growth.
However, they also observe that it doesn't make much sense to hand our money to the hostile dictators of Third-World basket cases if it isn't going to boost economic growth. Subramanian, who until last year was chief economist at the IMF, holds that aid money would be better spent on providing research and development incentives to the private sector.
Unfortunately this might mean fewer gold-plated toilet seats for the Idi Amins and Robert Mugabes of the world.
On a tip from Bill.
Posted by Van Helsing at July 20, 2007 5:36 AM
Comments
Yep, the things that actually could set countries on that "path to growth" are freedom and capitalism, and sadly, moonbats aren't too fond of those.
Posted by: Anonymous at July 20, 2007 11:15 AM
It's a good thing the United States got all that foreign aid money back in the early 19th century or else we never would have gone from an agricultural economy to an industrial powerhouse and the world's supermarket. Oh wait, the United States never did get any foriegn aid. How on earth did we ever get to here without some other government stuffing the pockets of our politicians?
Posted by: Kevin at July 20, 2007 12:31 PM
'Tis a puzzle indeed, Kevin
Posted by: KHarn at July 20, 2007 12:52 PM
He must be left-handed, and he must "spank his monkey"...a lot. His left hand is quite furry.
Posted by: skh.pcola at July 21, 2007 12:14 PM
I haven't gotten much done recently. I don't care. My life's been basically boring these days. Whatever. More or less nothing exciting going on lately, but pfft.
Posted by: 2 europe history modern volume at August 28, 2007 11:50 AM
More or less not much exciting happening today. I just don't have anything to say. More or less nothing seems worth bothering with.
Posted by: nasty at September 21, 2007 10:26 AM
