Foreign direct investment has far outstripped foreign aid in many countries. Yet such investment does not seek to reach the poorest and most vulnerable, it does not seek to ensure significant gains in health or education nor does it seek the equality of women and minorities.
Effective aid addresses the basic needs of livelihoods, education, health, clean water, sanitation, and the rule of law for the poor and vulnerable in developing countries. Foreign direct investment alone cannot break the cycle of poverty for the “bottom billion” of the world’s poor who live on less than a dollar a day.
"— Malcolm Fraser, former Prime Minister of Australia, on the effectiveness of aid. While I agree with what Fraser says, I would change ‘cannot break the cycle’ to ‘does not break the cycle’. As an aside, am I the only one frustrated to see the same old anti-aid arguments being trotted out again and again?
