Reader response: foreign aid, geopolitics and perverse incentives
I commend Charles Miller for writing on the important and under-examined relationship between our development assistance and broader international goals and settings. I’m puzzled, however, by his leap from the imperfectability of foreign aid to a declaration that it doesn’t work, especially when donated for strategic reasons.
Almost all aid offered by OECD donors such as ourselves is ultimately provided for some mix of both humanitarian and strategic motives. In Australia, a third purpose—supporting domestic commercial interests—was formally removed in 1997. But even at the height of the subsequent ‘One Clear Objective’ phase of our aid approach, a key reason for focusing on poverty reduction was to break the link between underdevelopment, insecurity, and instability in countries that are important to us. Read more