Surbhi Bharadwaj

GWWC Team

 about charity. Taking time to learn the facts will help prevent the spread of misinformation and inspire more people to use their resources effectively to improve the world.

A widespread critique of international charity and foreign aid is that it undermines state institutions and nonprofits in the recipient country, creating a long-term dependency on "

 and marked by missteps. Yet such a sweeping narrative does not tell the whole story of foreign aid's 

 on lifting millions out of poverty, nor does it speak to the concerted efforts by effective aid organisations to equip local institutions to become self-sufficient.

By supporting effective aid organisations that prioritise evidence-based interventions and empower local communities in recipient countries, we can reduce the misallocation of aid, spur growth, and reduce low-income countries' reliance on foreign aid in the long term.

The critique that international charity and aid make low-income countries dependent on "handouts" 

 the thinking that, if foreign aid constitutes a significant portion of a country's national budget, that country becomes accountable to its foreign donors, rather than its citizens. Countries that aren't accountable to their citizens may be less incentivised to deliver basic goods and services. As a result, public institutions can be weakened, poverty can increase, a vicious cycle can arise from political expediency and aid dependency. Similarly, 

 that international charity and aid "crowd out" local organisations (including both businesses and nonprofits) from serving people in need. If those organisations collapse from a lack of need and support, the recipient country can become even more dependent on foreign aid.

However, such dependency is not an inevitable consequence of international charity and aid. Dependency arises when aid is 

 that hinder long-term local development.

 towards well-designed and well-researched interventions can 

 recipient communities. In the lowest-income countries, local organisations often do not have the resources they need. Effective international charity and aid can act as a helping hand to equip local governments and institutions to provide interventions independently. This is in contrast to the prevailing narrative that international aid organisations "crowd out" local organisations and government systems.

Here are some organisations working to set up systems that support local communities, rather than making them dependent on aid:

The distribution of drugs to fight neglected tropical diseases not only improves health, but leads to greater levels of education and wealth. 

 set up these programs to be taken over by national health departments in a sustainable way, leading to decreased dependency on aid over time.

 help governments to fortify staple foods with micronutrients. Once the standards and processes are set up, there is no need for any continued "handouts."

 helps local governments and NGOs to treat and prevent neglected tropical diseases by providing funding and technical assistance.

 provides unconditional cash transfers directly to those who need it most. According to their research, recipients spend their money on essentials like medicine, farmed animals, and school fees. These investments can stimulate economic growth and strengthen institutions in recipients' communities.

 supports government-run vitamin A supplementation programs by providing advocacy, technical support, and funding.

You can channel funds to low-income countries in a highly effective manner and reduce their long-term dependence on foreign aid by donating to one of many 

 that are working to improve lives and support local institutions. Consider making a 

 of like-minded people who are working to make the world a better place.

A widespread critique of international charity and foreign aid is that it undermines state institutions and nonprofits in the recipient country, creating a long-term dependency on "handouts.'' The history of foreign aid is fraught and marked by missteps. Yet such a sweeping narrative does not tell the whole story.

By supporting effective aid organisations that prioritise evidence-based interventions and empower local communities in recipient countries, we can reduce the misallocation of aid, spur growth, and reduce low-income countries’ reliance on foreign aid in the long term.

A widespread critique of international charity and foreign aid is that it undermines state institutions and nonprofits in the recipient country, creating a long-term dependency on "handouts.'' The history of foreign aid is fraught and marked by missteps. Yet such a sweeping narrative does not tell the whole story.

By supporting effective aid organisations that prioritise evidence-based interventions and empower local communities in recipient countries, we can reduce the misallocation of aid, spur growth, and reduce low-income countries’ reliance on foreign aid in the long term.

Does aid make low-income countries dependent on handouts?

Shouldn’t we just focus on economic growth to lift people out of poverty?

Critics of philanthropic efforts to reduce poverty sometimes argue that economic growth is the only sure path to ending extreme poverty. However, without effective philanthropic efforts to reduce poverty and eradicate disease, economic growth is neither fast enough nor adequate to avert the 

Some critics of charity argue that the solution to poverty is economic growth. They believe that, instead of working to address poverty through charity, we should focus on growing the economy. It is true that economic growth, particularly in 

, has substantially contributed to reducing poverty in recent years. However, China may be an outlier. Even under very optimistic growth projections, it would take 

 to eventually lift everyone on earth out of extreme poverty through economic development. In the meantime, billions of people will needlessly continue to suffer and millions will die each year.

A key reason why it would take a long time to eradicate poverty through economic growth is that, put simply, most of the world is very poor. As 

, "The huge majority of the world lives in countries where the majority is poor." More precisely, "77% of the world population live in countries in which more than 90% live on less than $30 per day." If we want to reduce global poverty to the level of poverty in a wealthy country like Denmark, Roser argues, we will have to increase the global economy by about 

 Moreover, even if economic growth is an effective way to reduce poverty, we currently lack evidence-based interventions to achieve it. For now, it may be best to support research in this area.

Luckily, we don't have to choose between economic growth and humanitarian aid. We can support policies to encourage economic growth in low-income countries and concurrently support communities through aid and philanthropy.

Moreover, many highly effective charities conduct work that has significant economic benefits in addition to their humanitarian impact. For example, the 

 distributes highly effective long-lasting insecticidal nets (LLINs) to prevent malaria in countries 

. There's some evidence that such interventions can have 

 for the countries in which they're employed by reducing the incidence of malaria, tuberculosis, and other preventable diseases. Empowering people in these countries by improving their health increases their ability to contribute to their local economies.

You can support economic empowerment throughout the world by donating to the Centre for Effective Altruism's 

By giving to effective charities, we can make a positive impact in low- and middle-income countries. Make a 

Critics of philanthropic solutions to poverty sometimes argue that economic growth is the only sure path to lifting people out of poverty. However, without effective philanthropic efforts to reduce poverty and eradicate disease, economic growth is neither fast enough nor adequate to avert millions of preventable deaths.

Giving What We Can is a community of effective givers. We support each other by learning and sharing information about effective giving. We aim to create a culture in which people are inspired to give more, and give more effectively.

GWWC Team

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Does aid make low-income countries dependent on handouts?

Shouldn’t we just focus on economic growth to lift people out of poverty?