Home
/
RELIGION & LIBERTY ONLINE
/
Development vs. thuggery: How foreign aid hinders local business
Development vs. thuggery: How foreign aid hinders local business
Nov 5, 2026 11:57 AM

The foreign aid movement has largely failed the global poor, promoting top-down solutions at the expense of bottom-up enterprises and institutions, as Acton’s widely acclaimed documentary, Poverty, Inc., and PovertyCure film series detail at length.

Whether due to basic errors in economic thinking or a more subtle, subconscious apathy toward local enterprise, such efforts routinely lead to more disruption than development, hindering the very countries they hope to assist.

It’s an ignorance and oversight that has painful implications for many in the developing world, particularly for the local entrepreneurs in these countries who are already trying to meet the needs of their neighbors from the bottom up.

Take Ghanaian software entrepreneur Herman Chinery-Hesse, who continues to face petition from panies and governments who conspire to give away “free money” for “Ghanaian relief” in exchange for lucrative contracts. In the end, such arrangements patronize local governments, distort market signals, and often panies like Chinery-Hesse’s doing much of the dirty work for little pay.

“They [the panies] got the best of both worlds: their government paid, we ended up doing the work, and they took the money,” he says. “That’s not development. That’s not assistance. That’s thuggery.”

In an excerpt from PovertyCure, Chinery-Hesse shares more about those struggles:

There are situations where I’ve set up a business deal and I’m about to do a trade — to sell something to munity — and I’ve made an investment. NGOs will hear about it, because it es topical, and they find a way to bring aid money and provide it for free. So what happens to my investment? I have to lay off my staff.”

To a large extent, our governments have been held captive by the donor agencies — the international munity — who are not, in my view, particularly interested in seeing the growth of local business. When we talk to the government, the government says, “Hey, we’re not allowed to buy, with donor money, local products. That’s just the way it is. It’s their money; they decide who gets it. And this has been a big dilemma for us.

Over time, this sort of behind-the-scenes deal-making among foreign governments, NGOs, and corporations sows seeds of frustration among local, home-grown entrepreneurs, slowing down or disrupting the organic, bottom-up development that, in the case of Chinery-Hesse and others, is already in motion.

If building hum-drum, sustainable businesses is the normative way to climb out of poverty, as even Bono is willing to admit, we’d do well to take the right precautions and wield the proper humility to ensure that our foreign aid doesn’t snuff out those very developments.

Without care or concern for the “intangible assets” that already exist in munities, the grandiose ideas of economic planners will manifest accordingly, resulting in clumsy systems and solutions that fail to consider the reality of human needs and the hope of the creative potential that already exists across the developing world.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Verse of the Day
  Deuteronomy 8:17-18a In-Context   15 He led you through the vast and dreadful wilderness, that thirsty and waterless land, with its venomous snakes and scorpions. He brought you water out of hard rock.   16 He gave you manna to eat in the wilderness, something your ancestors had never known, to humble and test you so that in the end it might...
Verse of the Day
  1 Corinthians 16:2 In-Context   1 Now about the collection for the Lord's people: Do what I told the Galatian churches to do.   2 On the first day of every week, each one of you should set aside a sum of money in keeping with your income, saving it up, so that when I come no collections will have to be...
Verse of the Day
  Commentary on Today's Verse   Commentary on Proverbs 21:3   (Read Proverbs 21:3)   Many deceive themselves with a conceit that outward devotions will excuse unrighteousness.   Proverbs 21:3 In-Context   1 In the Lord's hand the king's heart is a stream of water that he channels toward all who please him.   2 A person may think their own ways are right, but the Lord...
Verse of the Day
  Commentary on Today's Verse   Chapter Contents   The excellency of brotherly love.   We cannot say too much, it were well if enough could be said, to persuade people to live together in peace. It is good for us, for our honour and comfort; and brings constant delight to those who live in unity. The pleasantness of this is likened to the...
Verse of the Day
  Commentary on Today's Verse   Commentary on John 8:30-36   (Read John 8:30-36)   Such power attended our Lord's words, that many were convinced, and professed to believe in him. He encouraged them to attend his teaching, rely on his promises, and obey his commands, notwithstanding all temptations to evil. Thus doing, they would be his disciples truly; and by the teaching of...
Verse of the Day
  Commentary on Today's Verse   Commentary on Matthew 9:10-13   (Read Matthew 9:10-13)   Some time after his call, Matthew sought to bring his old associates to hear Christ. He knew by experience what the grace of Christ could do, and would not despair concerning them. Those who are effectually brought to Christ, cannot but desire that others also may be brought to...
Verse of the Day
  Commentary on Today's Verse   Commentary on Romans 1:16-17   (Read Romans 1:16-17)   In these verses the apostle opens the design of the whole epistle, in which he brings forward a charge of sinfulness against all flesh; declares the only method of deliverance from condemnation, by faith in the mercy of God, through Jesus Christ; and then builds upon it purity of...
Verse of the Day
  Commentary on Today's Verse   Chapter Contents   God's answer to Solomon's prayer.   God gave a gracious answer to Solomon's prayer. The mercies of God to sinners are made known in a manner well suited to impress all who receive them, with his majesty and holiness. The people worshipped and praised God. When he manifests himself as a consuming Fire to sinners,...
Verse of the Day
  Commentary on Today's Verse   Commentary on John 14:12-17   (Read John 14:12-17)   Whatever we ask in Christ's name, that shall be for our good, and suitable to our state, he shall give it to us. To ask in Christ's name, is to plead his merit and intercession, and to depend upon that plea. The gift of the Spirit is a fruit...
Verse of the Day
  Romans 13:1-2 In-Context   1 Let everyone be subject to the governing authorities, for there is no authority except that which God has established. The authorities that exist have been established by God.   2 Consequently, whoever rebels against the authority is rebelling against what God has instituted, and those who do so will bring judgment on themselves.   3 For rulers hold...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved