Thomas P.M. Barnett :: Weblog

EDITORIAL: “Privatize Foreign Aid? A new study shows who’s really the most generous” Wall Street Journal, 7-8 July 2007, p. A6.

Neat bit from the Hudson Institute. Says the private sector provides $95 billion in cash, goods, and volunteer time to the Gap in 2005. On top of the $27 b in official developmental aid, that would put our total impact (sans military effort) at $123b.

The breakdown:

--$2.2 from foundations
--$5.1 from corporations
--$13.4 from PVOs
--$4.6 from colleges and universities
--$5.4 from religious groups
--$61.7 in remittances.

That total puts us, with the ODA factored in, at roughly 1% of our GDP.

Ah, but you complain that the only “real” aid is ODA. I say check out the track record on that one.

Ah, but you note that half is private transfers by individuals working in our economy (who, BTW, spend over 90 percent of what they earn here right here in America, sending back, on average, about 7 percent), and how can we count that as aid?

If I do the same and make donations in a similar range, how is that any different? Or do I need relatives there to send it to?

As for the notion that individuals getting all this money will simply waste it, again, it’s hard to see how they would do any worse than the ODA we provide. At least it’s empowering individuals and not corrupt states.

The list of players here involve exactly the sources I’d expect to finance Development-in-a-Box opportunities rather than relying on the government to direct.