Why nations fail and remain poor: Part II, Foreign Aid is part of the problem not the solution!


Today’s petition delivered to the Prime Minister by Rees-Mogg supports our long standing view that foreign aid ADDS to nation poverty rather than curing it. We have first hand experience of it in Nepal, Read our 3 part series explaining it …..

Buddha Walks Into A Wine Bar ....

1489215900108In Part I of this series we described the assertions about poverty and why nations fail from the excellent book by Acemoglu and Robinson, “Why Nations Fail”: With many examples they revealed a single and consistent factor as being the one contributory cause of failure and poverty; the EXTRACTIVE nature of economic and political institutions in any country. These are structured to extract resources from the many by the few and fail to protect property rights or provide incentives for economic activity. They also concentrate power in the hands of a few, who will then have incentives to maintain and develop these institutions for their own benefit and use the resources they obtain to cement their hold on political power.

So, how does Foreign Aid play a part in this, and is it a helping or hindering force? Here is a simple, unbelievable but true example from Acemoglu and Robinson:

View original post 873 more words



Categories: Politics

Tags: ,

1 reply

  1. Wouldn’t argue with any of that, it is the reason I won’t give to overseas charities!

    Liked by 1 person

Leave a comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: