Sunday, July 03, 2005

More aid to Africa?

The Anchoress pointed out a good article by Allister Heath titled Live 8: good for sentiment, not for results. The whole piece is worth a read, its theme being that economic studies are showing that aid from Big 8 countries correlates negatively with economic improvement in third world countries. Excerpt:
A separate study from the Globalisation Institute this weekend finds that for every 1% increase in aid received by a developing country, there is a 3.65% drop in real GDP growth per person. Contrary to the conventional wisdom in the aid industry, the study finds that even where recipients have good governance, the effect is also negative.

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