Thursday, July 19, 2007

Socialism For ALL!

A little global socialism, anyone?

From this source:

WASHINGTON (Reuters) - Aid to poor countries has little effect on economic growth, and policies that rely on such claims should be reexamined, two former International Monetary Fund economists wrote in a paper released this month.

"We find little evidence that aid works better in better policy or institutional environments, or that certain kinds of aid work better than others," they added.

What does this tell you? I would infer that since foreign aid is largely ineffective it is a waste of money, and should be stopped. But noooooo, that's not what the 'report' really means:
"Our findings suggest that for aid to be effective in the future, the aid apparatus will have to be rethought."

"There is a moral imperative to this question: it is a travesty for so many countries to remain poor if a relatively small transfer of resources from rich countries could set them on the path to growth."

But if there is no clear evidence that aid boosts growth, then handing out more money makes little sense, they said.

In a telephone interview, Subramanian said the aid money would be better spent on a research and development fund to get the private sector to make products to help poor countries.

Private companies have little financial incentive to develop a malaria vaccine, for example, but if rich nations pledged to buy the product for impoverished countries, firms would be more inclined to invest in the research.

"The challenge is, how do you harness this good intention and good motives into better results?" Subramanian said.

The road to Hell is paved with good intentions...

No comments: