A growing cohort of economists doing studies of third world development are coming to the conclusion that foreign aid does more harm than good. It entrenches dictatorships and bureaucrats, stifles self-help, undermines naturally occurring markets, and has a clear empirical record of failure. A recent study comparing African countries who got a lot of aid over the years to those who got little or none, found the latter group did far better.
Micro loans foster capitalism from the ground up. The entrepreneurs who take advantage of it, usually women, have to show a plan, execute it, and suffer peer pressure if they don’t repay. A great way to fight poverty.
