New Hope for Foreign Aid that will Actually Work

[a_unique_person]

The third reason for optimism is a revolution in our knowledge of why countries develop. Only in the past decade or so have economists and global institutions fully grasped the economic importance of social development through education, health care, and the development of a culture conducive to business development and good, corruption-free government.

The bank's own priorities have changed radically to reflect this - it used to be in the construction business, it is now in the knowledge business. It still funds infrastructure projects, but increasingly its emphasis is to ensure that every child receives a good basic education, that safe water and health care are available to all, that childbirth is not fatal to mother or child, and that gender equity becomes a reality. Experience shows that these rights not only flow from economic growth, but in a virtuous circle, they generate it.

http://www.theage.com.au/articles/2003/04/21/1050777210246.html

There has been a large debate about foreign aid. Is it a waste of time, does it actually make things worse? Shouldn't our hard earned taxes be spent on our own problems?

According to this article, aid can be shown to work. It depends on, not charity, but knowledge and self-empowerment.

Also, please ignore the part about the Ausralia reducing aid while other countries increase it. This must be a misprint.