U.S. Foreign “Aid”

Every so often, Jeffrey Sachs tries to humiliate the U.S. into increasing its foreign aid. It’s true: While we give away about $19 billion annually in foreign aid, it’s not much relative to our Gross National Income. The Dutch give away about 5 times more, and we’re usually toward the bottom of the rankings for industrialized nations.

But even our Official Development Assistance - grants that promote economic development in low income countries - doesn’t really get to the poorest countries on earth. The United Nation’s Human Development Index (HDI) helps quantify a country’s progress in areas such as health, education, and general economic welfare. One might think that this would be a pretty good guide to foreign aid benefiaries. But the five most under-developed countries on earth only receive $186 million in aid from the U.S., about 7% of what Israel receives annually.

At more than $10 billion in 2005, Iraq alone accounts for 45% of our total foreign aid. So the U.S. is spending about half of its development assistance solving a problem that we helped create. Actually, if you look at the top 4 countries that we give assistance to, it reads like a who’s who of failed U.S. foreign policies: Iraq is devolving into civil war, Israel has lost our roadmap to peace, Afghanistan cultivates poppies and terrorists, and we have outsourced Sudan’s genocide.

The bottom ten countries on the HDI index are miserable, conflict ridden places. But are they better off with or without our so-called aid?U.S. Foreign Aid and Human Development

Sources: Statastic, Wikipedia, United Nations Human Development Report

Notes: The “least developed countries on earth” is based on the 2003 United Nation’s Human Development Index.  Several countries that might have appeared near the bottom of the HDI were not ranked in 2003, many because of recent conflicts.  Statastico would like to give proper credit to the abject underdevelopment of the following countries that may have made the top 10 most miserable places to be a citizen, had they been ranked: Sudan, Iraq, Somalia, Liberia, Afghanistan, and Monaco.  Ok, maybe not Monaco.