In the end, a country’s progress depends almost entirely on its domestic policies and institutions, not on outside factors such as foreign aid. Policymakers should recognize that foreign aid has not caused the worldwide shift toward the market and that appeals for more foreign aid, even when intended to promote the market, will continue to do more harm than good.

More on Foreign Aid


No Government Foreign Aid for North Korea

By Doug Bandow. Investor’s Business Daily. October 28, 2016.

U.S. Should Stop Subsidizing Bad Israeli Economic and Occupation Policies

By Doug Bandow. Forbes. February 16, 2016.

Start-Up Nation: Israel’s Market Reforms

By Daniel J. Mitchell. Commentator. November 20, 2015.

Cato Studies

The Dead Hand of Socialism: State Ownership in the Arab World

By Dalibor Rohac. Policy Analysis No. 753. August 25, 2014.

Solving Egypt’s Subsidy Problem

By Dalibor Rohac. Policy Analysis No. 741. November 6, 2013.

The False Promise of Gleneagles: Misguided Priorities at the Heart of the New Push for African Development

By Marian L. Tupy. Development Policy Analysis No. 9. April 24, 2009.

Cato Reviews & Journals

80. Foreign Aid and Economic Development

Cato Handbook for Policymakers. Cato Handbook for Policymakers, 8th Edition (2017).


Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa

Featuring Ian Vásquez. April 3, 2009. Book Forum.

Foreign Aid and the Weakening of Democratic Accountability in Uganda

Featuring . October 18, 2006. Policy Forum.

Corruption in Kenya

Featuring Marian L. Tupy. March 29, 2006. Policy Forum.