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Owen Barder was a Vice President at the Center for Global Development, Director for Europe and a senior fellow. He is a Visiting Professor in Practice at the London School of Economics and a Specialist Adviser to the UK House of Commons International Development Committee. Barder was a British civil servant from 1988 to 2010, during which time he worked in No.10 Downing Street, as Private Secretary (Economic Affairs) to the Prime Minister; in the UK Treasury, including as Private Secretary to the Chancellor of the Exchequer; and in the Department for International Development, where he was variously Director of International Finance and Global Development Effectiveness, Director of Communications and Information, and head of Africa Policy & Economics Department. As a young Treasury economist, Barder set up the first UK government website, to put details of the 1994 budget online.
In this working paper, Owen Barder raises fundamental questions about the purpose of aid transfers. For many donors the purpose is "poverty reduction" in the narrow sense of growth that reduces poverty. Barder argues that such a focus ignores key trade-offs, such as between reducing current and future poverty and between addressing the causes and symptoms of poverty, and results in less effective aid. This is an important paper for practitioners as well as students of how the aid system works.
Reuters recently reported that the global health community is beginning to explore potential insurance mechanisms and risk management products to finance pandemic flu vaccines for developing countries, in addition to a new vaccine stockpile supported by GSK and other manufacturers:
The aid business has long grappled with the trade-off between showing results and supporting a country's own institution-building. Donors want to be sure that their money makes a difference, and often quickly. But close monitoring raises costs and pushing for quick results leads to projects that bypass or even undermine domestic institutions that are crucial to development. In Payments for Progress: A Hands-Off Approach to Foreign Aid, Owen Barder, now director of Global Development Effectiveness at the United Kingdom Department for International Development, and CGD president Nancy Birdsall propose solving this problem by having donors pay for proven progress towards such agreed goals as additional children completing school and additional kilometers of roads built. How to achieve these goals would be left to the aid recipient government. They suggest this approach may be particularly useful in fragile states. Learn more