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The benefactor of aid seems to be driven more by the giving and not the end result and the beneficiary's are happy to take the loot instead of implementing real reforms. Reading this I really did get the impression that the foreign aid sector is a hangover from the time of Empire and that the giving of aid has more than a touch of neo-colonialism about it.

Anyway, it's a great read. Probably most suitable for those who already think aid is a waste of time. But could possible change a few minds of those who are on the fence. See all reviews. Top reviews from other countries. This was an eye opener for me.

It's one thing giving foreign aid but it's quite another thing for Dfid to be so cavalier with tax payers money especially when there are austerity measures here in Britain. Half the time they have no idea where the money has gone and the people who are most in need see little of it. This book reveals that foreign aid is more about a PR exercise for the Tory party than making certain that aid gets to where it should.

After reading this I am of the opinion that foreign aid should not be ring fenced and should also be open to greater scrutiny. Tax payers have a right to know where their money is going and it should not just be routinely doled out. Any country that is a nuclear power should definitely be ruled out. Of course those who are in charge never feel the any of the results of austerity measures because they are well insulated from them.

This book should be compulsory for everyone to read and then the whole system should be overhauled. Very frightening. The utter waste of it all exposed. If this is what we pay taxes for and give away 11 billion a year it is past time for a complete re think of the whole thing. A very good well balanced factual read which ought to shame most politicians in general and in particular David Cameron. He more than anyone should stop this posturing and hang his head in shame.

A must read in the Westminster village. You will not put your hand in your pocket again after reading this. A fascinating insight into the reality of what happens to much of the overseas aid provided by both our Government and the aid agencies. One person found this helpful. Interesting book dealing with plans to increase UK foreign aid and failures over the years, with some recommendations for improvements.

Foreign aid falls into the immediate kind of saving people from a drought or the longer term of helping them to improve themselves and their country, and do better long term. The author looks at what three trillions of dollars over six decades of foreign aid from the countries of the world have done over the years. Unfortunately, the money has accomplished little, except for providing opportunities for selected persons to become rich or in some cases very rich off of stolen foreign aid.

Many people and governments around the world have tried to contribute with money and work to helping the poorer countries and peoples of the earth. This book details the problems and failures, and limited successes. He proposes some limited goals for the future, specifically shifting some of the aid budget to the armed services to administer as being better at it than the family of aid agencies.

A thoughtful book that can help people to understand the foreign air issues, and what the UK should do in the future. The book does not directly apply to the USA, but there are common threads. Report abuse.

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About Jonathan Foreman. Jonathan Foreman.

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His alternative, called the "Searchers" approach, uses a bottom up strategy. That is, this approach starts by surveying the poor in the countries in question, and then tries to directly aid individuals, rather than governments. Local markets are a key incentive structure.

The primary example is of mosquito nets in Malawi. In this example, an NGO sells mosquito nets to rich Malawians, and uses the profits to subsidize cheap sales to the impoverished. Hospital nurses are used as middle-women, profiting a few cents on every net sold to a patient.

One of the central tenets in Easterly's approach is a more bottom up philosophy of aid. This applies not only to the identification of problems, but to the actual distribution of capital to the areas in need. In effect, Easterly would have countries go to the area which needed aid, collect information about the problem, find out what the population wanted, and then work from there. In keeping with this, funds would also be distributed from the bottom up, rather than being given to a specific government.

Easterly also advocates working through currently existing Aid organizations, and letting them compete for funding. Utilizing pre-existing national organizations and local frameworks would not only help give target populations a voice in implementation and goal setting, but is more efficient economically. Easterly argues that the preexisting frameworks already "know" what the problems are, as opposed to outside NGOs who tend to "guess".

Easterly strongly discourages aid to government as a rule. He believes, for several reasons, that aid to small "bottom up" organizations and individual groups is a better philosophy than to large governments. Easterly states that for far too long, inefficient aid organizations have been funded, and that this is a problem.

The current system of evaluation for most aid organizations is internal. Easterly claims that the process is biased because organizations have a large incentive to represent their progress in a positive light. What he proposes as an alternative is an independent auditing system for aid organizations. Before receiving funding, the organization would state their goals and how they expect to measure and achieve them. If they do not meet their goals, Easterly proposes we shift our funding to organizations who are successful.

This would prompt organizations to either become efficient, or obsolete. Easterly believes that aid goals should be small. In his opinion, one of the main failings of aid lies in the fact that we create large, utopian lists of things we hope to accomplish, without the means to actually see them to fruition.

Rather than establish a utopian vision for a particular country, Easterly insists that we shift our focus to the most basic needs and improvements. If we feed, clothe, vaccinate, build infrastructure, and support markets, the macroscopic results will follow. The "Searching Approach" is intrinsically tied to the market.

Easterly claims that the only way for poverty to truly end is for the poor to be given the capability to lift themselves out of poverty, and then for it to happen. Philosophically, this sounds like the traditional "bootstrap" theory , but it is not. What he says is that the poor should be given the fiscal support to create their market, which would give them the ability to become self-reliant in the future. In the end of his book, Easterly proposes a voucher system for foreign aid.

The poor would be distributed a certain number of vouchers, which would act as currency, redeemable to aid organizations for services, medicines, and the like. These vouchers would then be redeemed by the aid organizations for more funding. In this way, the aid organization would be forced to compete, if by proxy. Sachs presents a near dichotomy to Easterly.

Sachs presents a broad, proscriptive solution to poverty. In his book, The End of Poverty, he explains how throughout history, countries have ascended from poverty by following a relatively simple model. First, you promote agricultural development, then industrialize, embrace technology, and finally become modern.

This is the standard "western" model of development that has been followed by countries such as China and Brazil. Sachs main idea is that there should be a broad analytical "checklist" of things a country must attain before it can reach the next step on the ladder to development. Western nations should donate a percentage of their GDP as determined by the UN, and pump money into helping impoverished countries climb the ladder.

Sachs insists that if followed, his strategy would eliminate poverty by Sachs advocates using a top down methodology, utilizing broad ranging plans developed by external aid organizations like the UN and World Bank. To Sachs, these plans are essential to a coherent and timely eradication of poverty. He surmises that if donor and recipient countries follow the plan, they will be able to climb out of poverty.

If those institutions are given the power to enact change, and freed from mitigating influences, then they will be much more effective. Sachs does not find fault in the international organizations themselves. Instead, he blames the member nations who compose them. The powerful nations of the world must make a commitment to end poverty, then stick to it. Sachs believes it is best to empower countries by utilizing their existing governments, rather than trying to circumnavigate them.

He remarks that while the corruption argument is logically valid in that corruption harms the efficiency of aid, levels of corruption tend to be much higher on average for countries with low levels of GDP. He contends that this hurdle in government should not disqualify entire populations for much needed aid from the west.

Sachs does not see the need for independent evaluators, and sees them as a detractor to proper progress. He argues that many facets of aid cannot be effectively quantified, and thus it is not fair to try to put empirical benchmarks on the effectiveness of aid. Sachs' view makes it a point to attack and attempt to disprove many of the ideas that the more "pessimistic" Easterly stands on.

First, he points to economic freedom. One of the common threads of logic in aid is that countries need to develop economically in order to rise from poverty. On this, there is not a ton of debate. However, Sachs contends that Easterly, and many other neo-Liberal economists believe high levels of economic freedom in these emerging markets is almost a necessity to development. Sachs himself does not believe this. He cites the lack of correlation between the average degrees of Economic Freedom in countries and their yearly GDP growth, which in his data set is completely inconclusive.

Also, Sachs contends that democratization is not an integral part of having efficient aid distribution. Rather than attach strings to our aid dollars, or only working with democracies or "good governments", Sachs believes we should consider the type of government in the needy country as a secondary concern.

Sachs' entire approach stands on the assertion that abject poverty could be ended worldwide by They came to the conclusion that aid money is given in many cases as an incentive to change policy, and for political reasons, which in many cases can be less efficient than the optimal condition. They agree that bad policy is detrimental to economic growth, which is a key component of poverty reduction, but have found that aid dollars do not significantly incentivize governments to change policy.

In fact, they have negligible impact. As an alternative, Dollar proposes that aid be funneled more towards countries with "good" policy and less than optimal amounts of aid for their massive amounts of poverty. With respect to "optimal amounts" Dollar calculated the marginal productivity of each additional dollar of foreign aid for the countries sampled, and saw that some countries had very high rates of marginal productivity each dollar went further , while others [with particularly high amounts of aid, and lower levels of poverty] had low [and sometimes negative] levels of marginal productivity.

In terms of economic efficiency, aid funding would be best allocated towards countries whose marginal productivities per dollar were highest, and away from those countries who had low to negative marginal productivities. The conclusion was that while an estimated 10 million people are lifted from poverty with current aid policies, that number could be increased to 19 million with efficient aid allocation. New Conditionality is the term used in a paper to describe somewhat of a compromise between Dollar and Hansen.

Paul Mosely describes how policy is important, and that aid distribution is improper. However, unlike Dollar, "New Conditionality" claims that the most important factors in efficiency of aid are income distributions in the recipient country and corruption. One of the problems in foreign aid allocation is the marginalization of the fragile state.

The fragile state, with its high volatility, and risk of failure scares away donors. The people of those states feel harm and are marginalized as a result. Additionally, the fate of neighboring states is important, as economies of the directly adjacent states to those impoverished, volatile "fragile states" can be negatively impacted by as much as 1. This is no small figure. McGillivray advocates for the reduced volatility of aid flows, which can only be attained through analysis and coordination.

A persistent problem in foreign aid is what some have called a 'neo-Newtonian' paradigm for thinking and action. Development and humanitarian problems are frequently dealt with as if they are simple, linear, and best addressed through the application of 'best practices' developed in Western countries and then applied ad infinitum by aid agencies.

This work advocates that aid agencies should embrace the ideas and principles of complex adaptive systems research in order to improve how they think about and act on development problems. Academic research has suggested that members of the public overestimate how much their governments spend on aid. There is significant opposition to spending on aid but experiments have demonstrated that providing people with more information about correct levels of spending reduces this opposition.

From Wikipedia, the free encyclopedia. This article is about assistance given from one country to another. For other uses, see Aid disambiguation. Voluntary transfer of resources from one country to another. Main article: List of countries by Official Development Assistance received. Main article: List of development aid country donors. Main article: Development aid. Main article: Official development assistance. Further information: Aid effectiveness.

Main article: Conditionality. See also: Tied aid. Main article: Aid dependency. Main article: Marshall Plan. Foreign Aid. In any case the difference is now moot since the DAC recently merged the two categories. Retrieved 28 May Section, " " " PDF. Retrieved 25 July Retrieved 12 April Retrieved 29 January Retrieved 18 October European Union. Retrieved 29 March The World Transformed to the Present. New York: New York.

Jones, Seth G. Development Initiatives. Retrieved 20 October Retrieved 16 January Archived from the original on 23 December Retrieved 27 May Retrieved 5 May Retrieved 27 March Oxfam America. Archived from the original on 11 May BBC News. Archived from the original on 12 May April Archived from the original on 3 October The Georgetown Public Policy Review.

Christian Science Monitor. Foreign Affairs. New York: Penguin Books. The Life You Can Save. New York:Random House. Oxford University Press. The Lancet. Simon and Schuster. Oxford Bulletin of Economics and Statistics. International Organization.

The Guardian. Archived from the original on 22 January Retrieved 1 December World Development. Journal of Economic Growth. Archived from the original on 27 July The New York Times. Journal of Economic Policy Reform. Retrieved 28 November Retrieved 17 March Democracy and Security.

American Economic Review , vol. Henry Holt and Company. Empire of Humanity: A History of Humanitarianism. Cornell University Press. United Nations Security Council. Kumarian Press. New York: PublicAffairs. CDD impact evaluation review and operational and research implications" : 1— American Economic Review. Rochester, NY. Against the grain: the dilemma of project food aid. Grassroots International.

Food First: Beyond the Myth of Scarcity. Ballantine Books. Politics of food aid: case of Bangladesh. Academic Publishers. Ithaca, NY: Cornell University. Journal of Development Studies. January Economic Development and Cultural Change. American Journal of Agricultural Economics. Spiegel Online. Psychology Press.

Land Economics, 78 4 : May Carter, Gwendolen Margaret, Bloomington: Indiana University Press. Geselbracht Foreign Aid and the Legacy of Harry S. Truman State UP. Bradford; Eichengreen, Barry MIT Press. A Companion to Europe Since William Easterly. Jeffrey D. Sachs, Columbia University". Archived from the original on 22 June Oxford: Oxford University Press. New York: Penguin Press. European Economic Review. The Economic Journal.

Aid Allocation and Fragile States. Journal of Experimental Political Science. Ministry for Foreign Affairs, Sweden. Archived from the original on 25 November Overseas Development Institute. Easterly, William Shah, Anup 28 September A compilation of case studies of successful foreign assistance by the Center for Global Development.

Archived from the original PDF on 1 June Mousseau, Frederic; Mittal, Anuradha. The Humanist. Lancaster, Carol; Ann Van Dusen Brookings Institution Press. Ali, Abdiweli M. The Journal of Developing Areas. Efforts to Evaluate U. Aid at GlobalIssues. European Network on Debt and Development reports, news and links on development aid. How Food Aid Work. Aid Guide at OneWorld. Categories : Aid International relations. Chiu Receive free daily summaries of new opinions from the Supreme Court of California.

People v. Chiu Annotate this Case. Justia Opinion Summary After a jury trial, Defendant was found guilty of first degree willful, deliberate and premeditated murder on the theory that the Defendant either directly aided and abetted the murder or that Defendant aided and abetted the target offense of assault or disturbing the peace, the natural consequence of which was murder.

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The Economics of Foreign Aid

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