13 August 2009

Shleifer on Bauer on Aid

Interesting article by Andrei Shleifer on Peter Bauer, the original Dambisa Moyo (if she had been a white man writing in the 1970s). Shleifer's conclusion is that it doesn't really matter that foreign aid is a bit rubbish, because "foreign aid is a sideshow" to the worldwide embrace of markets, trade, and better policies which are stimulating economic growth - the only sustainable way of raising incomes and eradicating poverty.

The trouble is, if this is true, where does it leave concerned Western citizens and developmentistas?

Specifically where does a young development careerist who wants to make a difference go work if all the jobs are in the sideshow?

Answers on a postcard please.

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