An analysis of the effects of foreign aid programs

Thousands of years ago, the language of accounting was simpler but nonetheless applicable in a primitive society that recorded the growth of crops and herds.

An analysis of the effects of foreign aid programs

Abstract This paper provides a framework for estimating the economic benefits of early child development ECD programs, and applies it to preliminary data from the PIDI project in Bolivia.

To these benefits we need to add benefits to the mother and other family members, to the neighborhood in which the children centers operate, and to society as a whole.

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A major objective of ECD programs is to prepare young children for enrollment in primary school. Many of the benefits of ECD therefore are realized "through" improved enrollment and schooling achievements of ECD graduates. We take advantage of this in our evaluation.

Productivity in this regard is very broadly defined to include productivity in the market place as well as home-production.

Congressional Research Service Reports on Foreign Policy and Regional Affairs Policy Issues. U.S. Trade Debates: Select Disputes and Actions, CRS In Focus, August 28, ; Trade Remedies: Section of the Trade Act of , CRS In Focus, August 22, ; Escalating Tariffs: Timeline and Potential Impact, CRS Insight, August 17, ; Department of State, Foreign . I have long believed in foreign aid as one tool of economic development. This is not an easy position to maintain, especially in the United . Many resource-strapped developing country governments seek international aid, but when that assistance is channeled through domestic civil society, it can threaten their political control.

We will quantify the benefits of increased life-time productivity as a result of ECD enrollment. We will also discuss additional benefits from education, but quantification will prove to be difficult. Not all benefits of ECD programs are education related.

Elizabeth R. Abernathy

There are direct benefits to the child e. We will try to catalog all benefits but, again, will not always be able to put a dollar value on them.

Based on the benefits we can quantify, our preliminary results for Bolivia show that ECD programs that are 1 well-targeted, and 2 have a major impact on school enrollment and achievement, and are excellent investments from an economic point of view.

We will also argue that if one adheres to some modest notion of social justice, ECD programs should be subsidized or be provided free-of-charge for those children who are born and grow up in the most deprived segments of society.

Introduction In recent years, an avalanche of literature has shown the importance of good nutrition, good health, a stimulating environment, and loving care in the early years of life, for the physical, mental and social development of a child. From better school performance to lower criminal behavior, the right combination of health care, adequate food, a pro-learning environment and good parenting, installs qualities, however defined, that result in more productive, more socially adapted, and in a general sense "better" children and adults, compared to when one of these factors is missing.

The links between good nutrition and brain development, even in utero, are well known Martorell, Del Rosso and Marek document the importance of good health and nutrition for cognitive development. De-worming has had significant effects on school performance Bundy, School feeding programs have not only increased enrollment, but also achievement Pollitt et al.

Pre-school programs have erased the disadvantages that young children experience when they grow up in marginalized neighborhoods, characterized by poverty, hunger and malnutrition, broken-up families, and crime Schweinhart,Haveman and Wolfe, Young provides a useful summary of programs aimed at children in the early years of life that consist of a combination of nutrition, health care and cognitive development components.

Myers provides one of the first comprehensive assessments of such programs for the developing world. Young gives a state-of-the-art review of the benefits that result from these interventions. It is not surprising that there is general consensus that ECD programs are particularly beneficial for disadvantaged children.

Most of the components that contribute to the proper development of a child are usually present in relatively well-off households.

An analysis of the effects of foreign aid programs

It is also well-known that, generally speaking, ECD programs are expensive. Though cost estimates vary widely see Wilson,the annual cost per child can easily exceed the cost for one year of primary education.

The need to target costly interventions at resource-poor areas or poor households, underscores the importance of providing policy makers with information that will allow them to judge which interventions are most beneficial while still being affordable.

After all, in a financially constrained environment, ECD interventions compete for resources with other programs and projects, such as primary education, irrigation works, or feeder roads. In this paper we will show how benefit-cost analysis can assist in providing that information, help select the "best" ECD program for the situation at hand from the myriad of program options available, and compare the economic benefits of ECD interventions with those from more standard investments.

The key-word is "investment".Get the latest news and analysis in the stock market today, including national and world stock market news, business news, financial news and more. I have long believed in foreign aid as one tool of economic development.

This is not an easy position to maintain, especially in the United States, where public misunderstanding, politics, and.

Foreign Aid is Used for Illegal Activities - Foreign aid is a type of funding that helps support many countries in great need. Other names for this term are foreign assistance, financial aid, and overseas aid.

Congressional Research Service Reports on Foreign Policy and Regional Affairs Policy Issues. U.S. Trade Debates: Select Disputes and Actions, CRS In Focus, August 28, ; Trade Remedies: Section of the Trade Act of , CRS In Focus, August 22, ; Escalating Tariffs: Timeline and Potential Impact, CRS Insight, August 17, ; Department of State, Foreign .

Get the latest news and analysis in the stock market today, including national and world stock market news, business news, financial news and more. Foreign Aid is Used for Illegal Activities - Foreign aid is a type of funding that helps support many countries in great need. Other names for this term are foreign assistance, financial aid, and overseas aid.

Congressional Research Service Reports on Foreign Policy and Regional Affairs