NCPA - National Center for Policy Analysis

What Has Foreign Aid Done For Us?

January 6, 1997

Foreign aid advocates want more money for Central Africa. But critics assert that cash transfers have a sorry record of advancing growth or stability in recipient countries.

  • Fully 70 developing states are poorer today than they were in 1980 -- with 43 worse off than they were in 1970.
  • Many of the biggest recipients of foreign assistance -- Bangladesh, Egypt, India, Sudan and Tanzania -- have been among the world's worst economic performers.
  • Prior to the latest emergency in Rwanda, that country received $4.5 billion in 23 years.

Rather than being an agent of assistance to many countries, foreign aid has often only subsidized corrupt dictators who wrecked their nations, critics believe.

Source: Doug Bandow (Cato Institute), "Foreign Aid: Part of the Problem," Investor's Business Daily, January 6, 1997.

 

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