11 March 2009

Dropping cash from helicopters

Why isn't more aid given directly to individuals? Why does it all have to get routed through government or NGOs? Nancy Birdsall and Arvind Subramanian argue that this is the best way for governments to deal with their oil, thus getting around the resource curse. Well if there is also an aid curse - aid stops governments from having to be accountable to their citizens - then surely direct, cash handouts to citizens could work for aid too? And - they've tried this in disasters and less than 0.5% was spent on beer by the men.


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