Why foreign aid fails – and how to really help Africa | 22 April 2017

The British government is strikingly generous in foreign aid donation But if money alone were the solution we would be along the road not just to ameliorating the lives of poor people today but ending poverty for ever.

The idea that large donations can remedy poverty has dominated the theory of economic development — and the thinking in many international aid agencies and governments — since the 1950s. And how have the results been? Not so good, actually. Millions have moved out of abject poverty around the world over the past six decades, but that has had little to do with foreign aid. Rather, it is due to economic growth in countries in Asia which received little aid. The World Bank has calculated that between 1981 and 2010, the number of poor people in the world fell by about 700 million — and that in China over the same period, the number of poor people fell by 627 million.