The Independent Commission for Aid Impact scrutinizes the spending of the UK’s £11.5 billion ($18.4 billion) overseas development assistance budget. The aid budget, which is the second largest after that of the United States, has been expanded to reach .71% of GDP and represents a genuine achievement for the current coalition government in difficult financial times.
Entries in Foreign Aid (12)
The International Finance Corporation and the World Bank released their new Doing Business Index this week. It's the 11th annual report measuring business regulations for local firms -- how easy or hard it is to do business in the countries surveyed. It focuses on small and medium-size companies operating in the largest business city of an economy.
Despite spending $96 billion in reconstruction aid in Afghanistan since the U.S.-led invasion 12 years ago, the U.S. State Department still isn't measuring anti-corruption efforts there.
"A little more than forty years ago, an observation was made that foreign aid was aid from the poor people of the rich countries to the rich people of the poor countries."
Ireland's Minister for Foreign Affairs said the government of Uganda will repay €4 million that was diverted from an Irish aid package.
My hypothesis is that aid agencies turn a blind eye to the endemic corruption that diverts money from the end goals because it is in the interests of the senior officials in those agencies to do so.
Not everyone agrees that aid creates poverty. But we thought of the aid-to-poverty cycle this week.
Eighteen senior government officials from Afghanistan will receive anti-corruption training in Singapore through an international aid package.
Does foreign aid cause corruption? It does, mainly by helping corrupt regimes stay in power. And because corrupt regimes are the most unstable, aid also fuels civil unrest.