These criticisms have been made before. New York University’s William Easterly has documented in great detail how the top‐down “technocratic” approach to development often serves only to enrich “expert” development professionals and dictators in poor countries. The documentary Poverty, Inc. similarly shines light on the problems plaguing the aid industrial complex.
The truth is that aid has never lifted a single country out of poverty and in some cases even hinders international development. Haiti is famously host to over 10,000 aid NGOs, but the inpouring of charity has perversely harmed local industries and led to a cycle of dependence that worsened poverty.
As we know, poverty renders women particularly vulnerable. Indeed, a review of the development literature, published in the Journal of Economic Literature, suggests that “gender inequality declines as poverty declines, so the condition of women improves more than that of men with development”. In other words, women’s social empowerment is intimately connected to economic empowerment, and women stand to gain the most from prosperity.
Letting women achieve greater economic clout enables them to lobby for social change, from which flows political and legal change. Milton Friedman stated that “economic freedom is … an indispensable means toward the achievement of political freedom”. In some countries, women are still not even legally allowed to pursue paid employment without spousal permission. As my colleague Guillermina Sutter‐Schneider notes, “Gender equality under the law improves as countries become more economically free.”
In her piece, Zakaria does recognize that the aid industry is bad at combating poverty and promoting development, but she then, unfortunately, dismisses those goals. And yet economic development is achievable. An overwhelming amount of data shows that just within my lifetime, extreme poverty has halved, with particularly heartening progress having been made in Asia.
This economic progress was not driven by aid, but by private enterprise. Economic growth in China and India significantly outpaced Sub‐Saharan Africa despite far less per person aid. That economic growth coincided with policies of economic liberalization. People in poor countries are not passive victims awaiting rescue. They possess agency and are lifting themselves out of poverty wherever they have the freedom to do so.
That is particularly true for women. Consider Bangladesh, which has seen a dramatic decline in poverty and positive change in women’s lives. As London School of Economics’ social economist Naila Kabeer observed: “It took market forces, and the advent of an export‐oriented garment industry, to achieve what a decade of government and non‐government efforts had failed to do: to create a female labour force.”