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    • Foreign aid effectiveness: A radical rethink (2/7)

    Betting on the poor

    Do cash transfers boost development more than billion-dollar aid projects, which often lack sustainability or never get off the ground? Diana Ohlbaum — a Washington insider — takes a hard look in part 2 of our series "Foreign aid effectiveness: A radical rethink."

    By Diana Ohlbaum // 20 February 2015

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    This is the second of seven parts in the Devex series "Foreign aid effectiveness: A radical rethink," written by Diana Ohlbaum — a former deputy director of USAID's Office of Transition Initiatives and senior professional staff member of the two congressional panels overseeing U.S. foreign affairs.

    Looking at the situation in Iraq, I’ve often wondered if we might have done more good by simply dropping dinars out of airplanes than by doling out billions of dollars for projects that failed to outlast our military presence or never even got off the ground.

    Outlandish as that might sound, there’s increasing evidence to suggest that unconditional cash transfers to ordinary citizens are one of the fairest, most cost-effective and most impactful ways to alleviate poverty and stimulate economic growth.

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    Read more articles on the Foreign aid effectiveness: A radical rethink series:

    ● The illusion of control
    ● The siren song of technical assistance
    ● Knowing our limits
    ● Old wine in new bottles
    ● Country ownership 3.0
    ● The path forward

    • Humanitarian Aid
    • Trade & Policy
    • Washington, DC, District of Columbia, United States
    • Iraq
    • Worldwide
    Printing articles to share with others is a breach of our terms and conditions and copyright policy. Please use the sharing options on the left side of the article. Devex Pro members may share up to 10 articles per month using the Pro share tool ( ).
    The views in this opinion piece do not necessarily reflect Devex's editorial views.

    About the author

    • Diana Ohlbaum

      Diana Ohlbaum@dohlbaum

      Ohlbaum is an independent consultant, an executive committee member of the Modernizing Foreign Assistance Network and a principal of Turner4D, a strategic communications firm. She has served as senior associate with the Center for Strategic and International Studies, a senior professional staff member of the U.S. Senate Foreign Relations Committee and the House Foreign Affairs Committee, and a deputy director of the U.S. Agency for International Development's Office of Transition Initiatives.

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