Reinventing Foreign Aid

The urgency of reducing poverty in the developing world has been the subject of a public campaign by such unlikely policy experts as George Clooney, Alicia Keyes, Elton John, Angelina Jolie, and Bono. And yet accompanying the call for more foreign aid is an almost universal discontent with the effectiveness of the existing aid system. In Reinventing Foreign Aid, development expert William Easterly has gathered top scholars in the field to discuss how to improve foreign aid. These authors, Easterly points out, are not claiming that their ideas will (to invoke a current slogan) Make Poverty History. Rather, they take on specific problems and propose some hard-headed solutions.

Easterly himself, in an expansive and impassioned introductory chapter, makes a case for the “searchers”—who explore solutions by trial and error and learn from feedback—over the “planners”—who throw an endless supply of resources at a big goal—as the most likely to reduce poverty. Other writers look at scientific evaluation of aid projects (including randomized trials) and describe projects found to be cost-effective, including vaccine delivery and HIV education; consider how to deal with the government of the recipient state (work through it or bypass a possibly dysfunctional government?); examine the roles of the International Monetary Fund (a de facto aid provider) and the World Bank; and analyze some new and innovative proposals for distributing aid.

See reviews on Amazon here.

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One Response to “Reinventing Foreign Aid”

  1. Ramathan Ggoobi March 16, 2011 at 7:37 am #

    Bill, you’re my favorite author and researcher. I read your book, “The White Man’s Burden” and now it is my favorite reading text for my students of development economics at Makerere University, here in Uganda. I have also read several of your papers on this and other related issues. Why do you think the world of donors has failed to listen to the loud calls for “reinventing foreign aid”? Here in Uganda aid has achieved one thing — entrenching corrupt politicians in power by financing their political campaigns and patronage. The public services that donors intend to finance have continued to rot as politicians divert the ODA to their private business empires. One country that fits perfectly in your description of “building rich economies with poor people” is Uganda. May be donors should change their mandate and finance private entrepreneurs, directly pay fees for students in poor countries,….instead of donating their money to our thieves. This would have bigger externalities to the poor. I cannot wait to read this book…

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