The Cartel of Good Intentions: Bureaucracy Versus Markets in Foreign Aid

This publication assesses the effectiveness of foreign aid in prompting prosperity in developing countries. The author argues that foreign aid works for everyone except for those whom it was intended to help. The publication shows how foreign aid allows politicians from wealthy countries to feel that they are doing all in their power to help the world’s poor, supports rich nations’ foreign policy goals, preserves a panoply of large national and international institutions and provides resources to poor country politicians with which to buy political support. Thus the author concludes that foreign aid only increases economic inefficiency and aggravates political corruption.

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