The Millennium Challenge Corporation has granted the Yemeni government 20.6 million dollars in order to fight corruption. Ummm, that sounds a little dubious. If the government is misusing funds, why would you give them more money? There’s even the promise of more funds in the future. The Yemeni ambassador to the US said, “The decision is a recognition of Yemen’s achievements in the regard, and it is an important step towards preparing Yemen for full membership of the program whereby the country will receive even more support annually.” Wow, talk about bad incentives. Many economists (and political commentators in those countries) blame the dependance on foreign aid on the inability of the country to improve. There is undoubtedly more to this story, the papers here give just the most superficial treatment to stories, but it still sounds worrying to me.
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