Does health aid to governments make governments spend more on health?

“…on average, for every health aid dollar given, developing country government shifted between $.43 and $1.17 of their own resources away from health. The trend is most pronounced in Africa, which received the largest amount of health aid.”

http://aidwatchers.com/2010/04/does-health-aid-to-governments-make-governments-spend-more-on-health/


Do elites benefit from democracy and foreign aid in developing countries?

“It thus appears that foreign aid, contrary to popular beliefs, leads to a more skewed income distribution in democratic developing countries while the effects are negligible in autocratic countries.”

http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6VBV-4VTCMBY-1&_user=10&_coverDate=07/31/2010&_rdoc=1&_fmt=high&_orig=search&_sort=d&_docanchor=&view=c&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=92cc0e83adda3bc1f386f4a3ce5a736a


Peter Bauer: Cato

http://www.cato.org/pubs/journal/cj25n3/cj25n3.html


Does Foreign Aid Help?

http://www.cato.org/pubs/journal/cj26n1/cj26n1-1.pdf


Small States: Not Handicapped and Under-Aided, but Advantaged and Over-Aided

http://www.cato.org/pubs/journal/cj28n3/cj28n3-5.pdf


Bauer and the Failure of Foreign Aid

http://www.cato.org/pubs/journal/cj29n3/cj29n3-1.pdf


Was that foreign aid … or a campaign contribution?

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Was that foreign aid … or a campaign contribution?


Exploring the failure of foreign aid: The role of incentives and information

http://www.springerlink.com/content/v1h1h447l3554920/

“The stated purpose of foreign aid is to promote economic and human development. Recently, the ability of foreign aid to achieve its goals is called into question. Widespread conceptual and empirical literature suggests that foreign aid is ineffective. This paper explores the failure of foreign aid relying on the role of both incentives and information. The success of aid depends on incentives faced by all parties in donor and recipient countries. In addition, both donors and recipients must obtain the necessary information to actually target and achieve desired goals. This analysis provides a double-edged sword to explain why foreign aid fails to achieve development goals.”


Graph of the day: Where the foreign aid goes

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Graph of the day: Where the foreign aid goes

Via Wild Bill, US foreign aid by recipient, 2004-08:

chrisblattman?d=yIl2AUoC8zA chrisblattman?d=7Q72WNTAKBA chrisblattman?i=HYJQYVfE1tY:H7i4sEMBKLE:V_sGLiPBpWU chrisblattman?d=qj6IDK7rITs

HYJQYVfE1tY

Daniel J. SmithSent Via Mobile Phone


Dirty Little Secret of Poverty

“…the dirty little secret of global poverty: some of the most wretched suffering is caused not just by low incomes but also by unwise spending by the poor…Our interviews and perusal of the data available suggest that the poorest families in the world spend approximately 10 times as much (20 percent of their incomes on average) on a combination of alcohol, prostitution, candy, sugary drinks and lavish feasts as they do on educating their children (2 percent).”

http://www.nytimes.com/2009/08/23/magazine/23Women-t.html


David Friedman on Aids Transmission

“As a result of references in an online discussion, I recently came across two published articles which offer evidence that this explanation is wrong, that vaginal transmission rates in Africa are not substantially higher than elsewhere. They go on to suggest that what is really going on may be iatrogenic, doctor caused, disease, that much of the transmission may be due to sloppy medical procedures, in particular the reuse of needles for injections. The evidence is in part from the pattern of infection—rates are apparently much too high among young people who have not had sex and whose mothers are not HIV positive, suggesting a non-sexual transmission mechanism. In part it is from studies that try to measure the transmission rate via vaginal intercourse. In part it is from regional patterns that don’t fit the patterns of the supposed causes.”
http://daviddfriedman.blogspot.com/2009/12/aids-in-africa-disturbing-evidence.html


Africa is Rich

http://aidwatchers.com/2009/11/africa-is-rich/

“So why do we insist on defining Africans only on the dimension in which Africa looks worst – material income – when on some other dimensions Africa compares well to the West?  Wouldn’t it be a lot less patronizing if we recognized the riches as well as the poverty of Africa?”


Dead aid: Why aid is not working and how there is a better way for Africa

http://www.springerlink.com/content/m237p1hh244m1253/


Democracy Failings

http://www.overcomingbias.com/2009/11/democracy-failings.html


Let them vote with their feet

Let them vote with their feet

 


The White Man’s Burden Documentary Trailer

http://www.youtube.com/watch?v=6_iM05nZll4


Starving for Freedom Blame famine on trade restrictions, not on climate change or a lack of Western aid.

http://online.wsj.com/article/SB10001424052748704107204574474731971741364.html

 

HT: Chris Coyne over at the Austrian Economists http://austrianeconomists.typepad.com/weblog/2009/11/development-links.html


The Political Economy of Aid Optimism or Pessimism

The Political Economy of Aid Optimism or Pessimism

 


What Can Aid Do?

http://www.peterleeson.com/What_Can_Aid_Do.pdf


What Can Foriegn Aid do for the World’s Poor?

http://www.cato-unbound.org/archives/april-2006/


Easterly on the New Global Religion

http://blogs.nyu.edu/fas/dri/aidwatch/2009/09/the_newest_global_religion.html

“(1) If you are an aid agency that covers hunger, exactly what is your excuse for not meeting the unmet needs for nutritional and vitamin supplements? These supplements are cheap, they have been demonstrated to work, and they fit well into other aid programs like conditional cash transfers.

(2) If you are the US government, how can you take a solemn vow to feed the hungry when there ARE food emergencies and yet you still insist the food come from American farmers and shippers? This leads tomonths of delays while people are dying from hunger. Sometimes the food arrives after the emergency is over, and then makes sustainable future food supplies worse by driving food prices down and driving local farmers out of business.”


Your aid dollars at work… suppressing voters

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Your aid dollars at work… suppressing voters

Colombia receives more U.S. military aid than all but Israel and Egypt. That aid is allocated in an unusual way: to specific brigades and bases of the Colombian armed forces. I wish I’d noticed that. Instead, I learn the fact in a new paper by Suresh Naidu and Oedrilla Dube.

With town-by-town variation in military aid, Dube and Naidu can look how annual changes affect local violence and politics. The result?

a 1% increase in US military assistance increases paramilitary attacks by 1.5% more in base municipalities, and lowers turnout for mayoral elections by .2% and .12% more in militarily and electorally contested regions

Their intuition: military aid indirectly helps paramilitary groups carry out political attacks and intimidate voters.

On the plus side, this at least suggests our aid is effective at something.

I wouldn’t say such evidence damns Plan Colombia. Fighting drug-funded insurgents is ugly but important. You don’t always get to pick your allies. But it suggests the U.S. might have a greater obligation to promote local democracy and safety alongside its military aid (and no, not by the military themselves).

Suresh is on the economics and political science job markets, and is easily one of the smartest and most creative scholars I know. Interview this man.

Daniel J. SmithSent Via Mobile Phone


Foriegn Aid to Corrupt Dictators

http://www.foxnews.com/politics/2009/09/22/tracking-taxes-sending-billions-aid-despots-wealthy-nations/?test=latestnews


How the British Invented “Development” to Keep the Empire and Substitute for Racism

http://blogs.nyu.edu/fas/dri/aidwatch/2009/09/how_the_british_invented_devel.html


Coyne on Aid to Dictators

http://www.independent.org/publications/tir/article.asp?a=739


African Entrepreneurs – Freakonomics Blog – NYTimes.com

http://freakonomics.blogs.nytimes.com/2009/09/08/african-entrepreneurs/?emc=eta1

Daniel J. Smith
Sent Via Mobile Phone


Aid and Specialization

http://blogs.nyu.edu/fas/dri/aidwatch/2009/09/beyonces_secret_for_greater_ai.html


Easterly on Genocides

http://blogs.nyu.edu/fas/dri/aidwatch/2009/08/how_i_dont_care_about_genocide.html


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