Monday June 29, 2020
Foreign aid to Ukraine helped spur the Democrats’ effort to impeach and remove President Trump earlier this year. Ukraine was supposed to be on the verge of great progress until Trump pulled the rug out from under the heroic salvation effort by US government bureaucrats. Unfortunately, Congress has devoted a hundred times more attention to the timing of aid to Ukraine than to its effectiveness. And most of the media coverage pretended that US handouts abroad are as generous and uplifting as congressmen claim.
US foreign aid has long fueled the poxes it promised to eradicate — especially kleptocracy, or government by thieves. A 2002 American Economic Review analysis concluded that “increases in [foreign] aid are associated with contemporaneous increases in corruption” and that “corruption is positively correlated with aid received from the United States.” Windfalls of foreign aid can make politicians more rapacious, which economists have dubbed the “voracity effect.”
Early in his presidency, George W. Bush promised to reform foreign aid, declaring, “I think it makes no sense to give aid money to countries that are corrupt.” Regardless, the Bush administration continued delivering billions of dollars in handouts to many of the world’s most corrupt regimes.