Document Type

Essay

Publication Date

Spring 2025

Abstract

In stark contrast to its peak in the Marshall Plan era, professional sentiment towards international development aid has become increasingly pessimistic as its shortcomings have become apparent. Inter alia, leading thinkers charge development aid with enabling and sustaining economic dependency, governmental corruption, political power imbalances, and paternalism. Even so, there may be diamondlike programs in the development aid rough. Cash and voucher assistance (CVA) programs—a subset of development aid—have seen moderate success. In particular, as compared to other forms of aid, unconditional cash transfer programs (UCTs)—a specific type of CVA—appear economical and effective and avoid many of the above criticisms. Given their promise, we recommend three policies that are intended to target and improve these diamonds in the rough: (1) improving disbursement mechanisms, (2) scaling investment in CVA, and (3) providing UCTs wherever possible. In sum, while acknowledging its varied and severe flaws, we urge that policymakers and development economists can and should salvage what little works in development aid.

Comments

Honorable mention prize winner.

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