"Whenever I go into a restaurant, I order both a chicken and an egg to see which comes first"

Tuesday, March 15, 2011

Towards dismantling foreign aid


I am for dismantling foreign aid and returning to the pre-McNamara Bank model of lender of last resort (countries look on the international capital market; then turn to the World Bank who may lend but on commercial terms). This idea is a step in the right direction - grants treated as contracts with terms and conditions and payment schedules that are based on performance and hands-off once the contract is signed.


How to Protect Foreign Aid? Improve It

Source: NYT A new approach to foreign aid, Cash on Delivery, would base payments on results and give poor countries the freedom to develop their own solutions.

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