Wednesday, October 30, 2019

U.S. Aid Makes Corrupt Countries More Corrupt

After closed House of Representatives impeachment hearings heard testimony on President Trump's role in delaying U.S. aid to Ukraine, Senate Minority Leader Chuck Schumer declared: "Numbers don't lie. It's even more clear now that President Trump is not the anti-corruption crusader he claims to be."

A 2002 American Economic Review analysis concluded that "Increases in [foreign] aid are associated with contemporaneous increases in corruption," and that "Corruption is positively correlated with aid received from the United States."

Bush declared, "I think it makes no sense to give aid., money, to countries that are corrupt." But the Bush administration continued delivering billions of dollars in handouts to many of the world's most corrupt regimes.

By 2004, the State Department had codified what amounted to backtracking: "The MCA is an incentive-based supplement to other U.S. aid programs." The Bush team found excuses to give MCA aid to some of the world's most corrupt governments as well, including Georgia.

The Obama administration continued pouring tens of billions of American tax dollars into sinkholes such as Afghanistan, which even its president, Ashraf Ghani, admitted in 2016 was "One of the most corrupt countries on earth." And the deluge of aid the Afghan government received only worsened the corruption.

Rather than encouraging good governance practices, foreign aid is more likely to produce kleptocracies, or governments of thieves.

As a Brookings Institution analysis observed, "The his.tory of U.S. assistance is littered. with tales of corrupt foreign officials using aid to line their own pockets, support military buildups, and pursue vanity projects." And both American politicians and bureaucrats are want to continue the aid gravy train, regardless of how foreign regimes waste the money or use it to repress their own citizens.


https://www.theamericanconservative.com/articles/foreign-aid-makes-corrupt-countries-more-corrupt/

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