Showing posts with label transfer payments. Show all posts
Showing posts with label transfer payments. Show all posts
Thursday, January 21, 2010
Unintended Consequences Revisitied
Here is another case of good intentions succumbing to unintended consequences. In this article, and this article, we find that all too often, foreign aid ends up hurting the nation it intends to help. The reality is that the majority of aid takes the form of cash, basically "transfer payments or subsidies." These payments end up enlarging the local government, which is usually corrupt and rarely focused on the people of that nation. Foreign aid needs to be looked at differently.
Labels:
economics,
Foreign Aid,
Haiti,
poverty,
property rights,
transfer payments
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