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The Aid Trap


Advanced nations understand that the source of their prosperity is a thriving business sector.  This is not the case when it comes to the poor countries of the world, whose governments are often hostile to businesses.  International aid for poor countries is almost exclusively distributed through nongovernmental organizations (NGOs).  Several studies have shown that the past 40 years of aid provided through these types of organizations not only fail to make poor countries any more prosperous, but they trap them in a cycle that continues to fail.  The authors explore an alternative to the NGO-centric aid model that is overwhelmingly used today and point out that these organizations are simply focused on the wrong things.

Central Argument:


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About the authors: Glenn Hubbard received his BA and BS degrees summa cum laude from the University of Central Florida, where he received the National Society of Professional Engineers Award. He also holds AM and PhD degrees in economics from Harvard University. In addition to writing more than 100 scholarly articles in economics and finance, Professor Hubbard is the author of two leading textbooks on money and financial markets. In government, Professor Hubbard served as deputy assistant secretary of the U.S. Treasury Department for Tax Policy from 1991 to 1993. From February 2001 until March 2003, he was chairman of the U.S. Council of Economic Advisers under President George W. Bush.

William Duggan is the author of three books on innovation: Strategic Intuition: The Creative Spark in Human Achievement (2007); Creative Strategy: A Guide for Innovation (2012); and The Seventh Sense: How Flashes of Insight Change Your Life (2015).  In 2007 the journal Strategy+Business named Strategic Intuition “Best Strategy Book of the Year.” He has BA, MA and PhD degrees from Columbia University, and twenty years of experience as a strategy advisor and consultant.