May 8, 2012

The end of aid boom?

OECD Countries: Official Development Assistance: 

The graph is from the Development Policy Blog. The US and Spain have the highest reductions for 2012. Only the UK and Australia have increases in aid estimated for 2012 (very small increases for Belgium and Switzerland, relatively speaking). 

It seems like foreign aid is a luxury good for most OECD countries. This is bad news for some programs that are actually making a difference in the developing world [probably good news for development in countries where aid create dependency, crowd-out local capabilities, or fuel corruption - of course it is hard to generalize]. However, this is not necessarily bad since the few money that is actually available now must be carefully monitored and scrutinized - and it its impact evaluated [or so one would hope], which might actually set up a culture of efficiency in the management of aid programs in the future. 
Thanks to Kathryn Zealand for the pointer.

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