Brookings Institution: The link between foreign aid and domestic social spending
Homi Kharas, interim vice president and director of Brookings’ Global Economy and Development program, and Lorenz Noe, research analyst in the Global Economy and Development program, examine trends in countries’ official development assistance and domestic social spending. The authors write, “Countries that spend more domestically also spend more on foreign aid. … The real constraint on both domestic social spending and aid is political will, not finance. Policymakers, as well as civil society, need to look hard at the evidence of impact and then play a part in ensuring that the political system delivers money to programs that reduce poverty at home and abroad…” (2/1).