Millennium Villages Blog

In a posting on the Global Brief blog, Millennium Promise CEO John McArthur addresses recent criticisms of foreign aid and answers questions about its continued viability in difficult economic times.

Spurred by a fragile global economic psyche and some controversial recent writings, foreign aid has entered a new cycle of scrutiny in recent months. This is not altogether surprising in light of widespread market malaise and the tendency of many to turn inward during times of crisis. But it is nonetheless risk-ridden at a time when intensified international collaboration is required. It is also ironic since rich countries were already falling dramatically behind, well before the onset of the crisis, on their commitments to support basic services in the poorest countries.

In practical terms, the debate around foreign aid tends to confuse two basic questions. The first is whether aid-financed programs achieve what they are meant to achieve. The second is whether the same aid-financed programs boost economic growth. The latter topic is important for understanding when countries can graduate from the need for aid to finance public programs exclusively from their own resources.

The full article is available at: http://globalbrief.ca/johnwmcarthur/2009/05/19/clarifying-two-central-questions-in-foreign-aid/

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