2031 Would more aid change things?

"Under President George W. Bush, America has dou­bled its development assistance to $19 billion in 2004, including tripling its assistance to sub-Saharan Africa since 2000. It has expanded access to the U.S. market through the African Growth and Opportuni­ties Act. The U.S. is the world’s largest humanitarian aid donor, providing $3.3 billion in 2003. The U.S. is the world’s largest source of bilateral and multilateral support to combat HIV/AIDS, malaria, and other infectious diseases, including $2.4 billion in interna­tional HIV/AIDS programs.[2]

Yet the U.S. is often criticized for not providing enough resources for development. The basis for this criticism is the theory that if only aid flows increased, developing countries would achieve economic growth and development. Economic analysis and the histori­cal record do not support this reasoning."

Calls for a new "Marshall Plan" over look the fact that sub-Saharan Africa has received a Marshall Plan several times over. Some third of the countries receiving regular aid since the 1960s have actually gone backward. "To put this in perspective, if all of the aid spent over those four decades were gathered together in today’s dollars and simply handed out to the 719 million people of sub-Saharan Africa, per capita GDP would increase by over $756— more than doubling its current per capita GDP."

Read this for the history of development aid, and the new proposal for a challenge account.