Bush modernizes aid

One of the most important changes to US foreign aid practice has just happened with very little fanfare. It has been widely understood that blind foreign aid, doled out solely on the basis of need, can often be counter-productive. Often the problem with the recipient countries is a corrupt central government and aid has tended to do nothing more than line their pockets and extend their stay in power. Trade, not aid, is the far better approach and the US would do the world much more good by eliminating tariffs and subsidies. Of course, this is politically untenable, so reforms to aid have been necessary. The Bush plan was tactically brilliant: augment the criteria by which nations are eligible to receive aid so that political realities are taken into account. To avoid criticism from the left, this criteria only applies to an INCREMENTAL $5 billion in aid, on top of the $10 billion already in the pipeline. The Bush tactic was expensive but effective: mute criticism from the left by increasing US foreign aid by 50% and mute criticism on the right by having this new aid be values based. One hopes that the criteria, once proven effective, will begin to apply to other forms of aid and that over time all aid will be invested properly. Read more about it in this New York Times piece.