A Brief Synopsis of the Topic:
Governments of wealthy countries send money to governments of poorer countries on the premise that such “aid” is necessary to promote development. Yet, after sixty odd years and more than $1 trillion thus spent, there is little evidence that it has done much good. But it has certainly done some harm – crowding out the private sector and undermining democratic accountability. Nevertheless, rock star economists, self-serving “development” charities and populist politicians campaign for increased “aid” spending.
But it doesn’t have to be like this. Fifty years ago South Korea was poorer than many Sub-Saharan countries. Now, following decades of rapid growth, its population has risen out of poverty. Likewise, Singapore, Hong Kong, and, more recently, China and India. A few African countries, notably Botswana and Mauritius, have also done rather well by focusing on enterprise.
Governments of wealthy countries send money to governments of poorer countries on the premise that such “aid” is necessary to promote development. Yet, after sixty odd years and more than $1 trillion thus spent, there is little evidence that it has done much good. But it has certainly done some harm – crowding out the private sector and undermining democratic accountability. Nevertheless, rock star economists, self-serving “development” charities and populist politicians campaign for increased “aid” spending.
But it doesn’t have to be like this. Fifty years ago South Korea was poorer than many Sub-Saharan countries. Now, following decades of rapid growth, its population has risen out of poverty. Likewise, Singapore, Hong Kong, and, more recently, China and India. A few African countries, notably Botswana and Mauritius, have also done rather well by focusing on enterprise.
About Johan Norberg
Johan Norberg is a senior fellow at the Cato Institute and a writer who focuses on globalization, entrepreneurship, and individual liberty. Norberg is the author and editor of several books exploring liberal themes, including a history of liberal pioneers in Swedish history. His book In Defense of Global Capitalism, originally published in Swedish in 2001, has since been published in over twenty different countries. Norberg’s articles and opinion pieces appear regularly in both Swedish and international newspapers, and he is a regular commentator and contributor on television and radio around the world discussing globalization and free trade. His personal website is http://www.johannorberg.net/