1) After a trillion dollars of aid, we still hear appeals for mosquito nets, etc., where just $2 per family or some such low number, would save millions of lives. My question is, if after a trillion dollars, if there are still lives that can be saved for a couple of bucks, then isn’t something terribly dysfunctional going on?
2) I don’t think it matters what the continent’s GDP is. Let’s say it’s $2 trillion. If a dictator is trying to retain power & gain wealth, an important tool would be the establishment of property rights that lead to domestic markets and attract foreign capital. But if by denying those rights to the citizens, the dictator has a good chance of skimming off the foreign aid, while keeping the populace powerless, then the aid actually prevents the establishment of institutions that will improve people’s lot on a permanent basis. In the absense of aid, the GDP might have been $20 trillion. Even in America, I wouldn’t be surprised to see a useless $100 million bridge constructed by the taxpayer just so a contractor with connections could earn a $2 million profit on the deal. So, I’d be even less surprised if a dictator gladly helped himself to a few million in skimmed aid proceeds at the expense of billions in the nations economic development. As long as the dictator retained a satisfactory amount of power & wealth, the amount of wealth destruction that resulted would not be related to or limited by his quest.
g, I think I have 2 responses to your comment.
1) After a trillion dollars of aid, we still hear appeals for mosquito nets, etc., where just $2 per family or some such low number, would save millions of lives. My question is, if after a trillion dollars, if there are still lives that can be saved for a couple of bucks, then isn’t something terribly dysfunctional going on?
2) I don’t think it matters what the continent’s GDP is. Let’s say it’s $2 trillion. If a dictator is trying to retain power & gain wealth, an important tool would be the establishment of property rights that lead to domestic markets and attract foreign capital. But if by denying those rights to the citizens, the dictator has a good chance of skimming off the foreign aid, while keeping the populace powerless, then the aid actually prevents the establishment of institutions that will improve people’s lot on a permanent basis. In the absense of aid, the GDP might have been $20 trillion. Even in America, I wouldn’t be surprised to see a useless $100 million bridge constructed by the taxpayer just so a contractor with connections could earn a $2 million profit on the deal. So, I’d be even less surprised if a dictator gladly helped himself to a few million in skimmed aid proceeds at the expense of billions in the nations economic development. As long as the dictator retained a satisfactory amount of power & wealth, the amount of wealth destruction that resulted would not be related to or limited by his quest.