From Iqbal Quadir’s opinion piece in the WSJ: Foreign Aid and Bad Government
Barack Obama has talked a lot about changing the way America relates to the world, and few areas are as ripe for reform as our policies on foreign aid. They have contributed to economic stagnation in poor countries and deprived America of large export markets. Entrepreneurship, not aid, is essential to rejuvenate markets in the developing world and, in turn, help America prosper.
During the Cold War, the U.S. instituted a policy of sending money to governments in poor countries to buy their political loyalty. While studies show that sending aid to foreign governments creates allegiance, it does not lead to economic progress. Instead, it makes governments in poor countries dependent on the U.S. rather than their citizens’ taxes.