Foreign assistance has thoughtlessly been downgraded. But someday, the realization of the vital role aid has played in the exercise of foreign policy will require that it be resurrected. When the day returns for the recognition of the importance of foreign assistance, greater attention should be given to illicit financial flows, or IFFs.
IFFs are the cross-border movement of money that is illegally earned, transferred, or used. Assessing, redirecting, and ultimately halting IFFs will be necessary if foreign assistance programs are to be built back better.
When I was ending my tour as USAID director in Tanzania in July 1996, I gave a farewell speech to my national colleagues. I recall saying, “Your country is rich, but it’s populated by poor people. It’s up to you as citizens of Tanzania to work to resolve this contradiction.”