Daily Archives: September 23, 2010

Development aid at the crossroads

The Financial Times has weighed in with a big picture analysis of the aid business.  “Development: Crumbs of comfort[1]

“The aid business is under pressure, and does not have a simple story to tell. As with other areas of economics and public policy, there are genuine disagreements over what to do and how.”

The article addresses the key issues and debates, including the value of small-scale monitored testing, the USA’s “buy American” policy and the increasing demand by donors for results.  The bottom line is that

“… the gathering (a UN meeting) will see not only much of the developing world falling short on most of the targets but the aid business itself fighting for increasingly scarce public money and under pressure to deliver.”

The FT looks at the MDGs and provides some useful economic insights that may help to better understand the complexity of the accord and measuring its success.

We have identified the key trends in previous posts, and it is increasingly evident that donors are looking for a higher level of impact and greater cost efficiency for less dollars.  The CG has been grappling with these issues over the last two years and there appears to be a consensus that the organization does need to engage more effectively with the private sector.

Post written by Peter Bloch, consultant to CAS-IP

[1] I had to register to view this article, but registration was free — Kay