Wednesday, May 17, 2006

Study: direct aid to governments works

Here's something surprising:

Direct aid to government works. At least according to a report by the Organization for Economic Cooperation and Development (OECD), a group of industrialized nations.

As the BBC reports, Giving aid directly to governments in developing countries is as effective as funding specific projects and no more prone to corruption, a study says.

The OECD says [direct aid to governments] boosts countries' capacities to manage their own affairs, and there is no evidence that money given directly to government budgets is more affected by corruption than other forms of aid [emphasis mine].

British officials cite the example of Ghana where budget support allowed the government to employ 10,000 more teachers and boost school enrolment.

While clearly direct aid to governments is not the only solution and it should continue to be closely monitored for accountability, it's an important piece in balancing the overall puzzle.


Post a Comment

<< Home