A recent blog post from the Center for Global Development has addressed and debunked a misleading claim that 90% of USAID aid is skimmed off before reaching target communities. The blog post provides a clear and thorough explanation to correct this misinformation.
Misinterpretation of Statistics. The claim originated from a misunderstanding of a statistic that only 10% of USAID payments are made directly to organizations in developing countries. However, this figure does not reflect inefficiency or corruption. The remaining 90% includes goods and services delivered in-kind, such as HIV drugs, emergency food aid, and malaria bed nets, which are crucial for development and humanitarian efforts.
Role of Prime Implementing Partners. USAID often awards funds to “prime” implementing partners responsible for running aid programs. These partners use the funds to deliver aid through various means, ensuring that the aid reaches those in need effectively and in compliance with USAID regulations.
Debunking the Claim. The blog emphasizes that the 10% figure does not indicate inefficiency or corruption but rather reflects the way aid is administered. The misleading claim has been used to argue for dissolving USAID, but it is wildly inaccurate and does not hold up under scrutiny.
Importance of Accurate Information. The blog post highlights the need to correct such misinformation to ensure that the public and policymakers have a clear understanding of how aid is distributed and its impact. Accurate information is essential for informed decision-making and maintaining the integrity of aid programs.
Unlock Aid. A recent post by Unlock Aid states that comments made during the PBS NewsHour three-part series on USAID localization efforts were misrepresented by influencers and officials to suggest that 90% of the funding is wasted or misused. Their position is that the 10% funding to local actors must be increased as a “more effective and sustainable investment strategy, building countries’ self-reliance and reducing dependency on U.S. aid.”
Washington Post Fact Checker. The White House issued a statement that listed a dozen instances of “…massive sums of money to the ridiculous – and, in many cases, malicious – pet projects of entrenched bureaucrats, with next-to-no oversight.” The Washington Post’s Fact Checker column (behind a paywall) investigated each and found 11 of the 12 to be unfounded.
Congressional Research Service. If you are looking for facts to inform your conversations, a Congressional Research Service report provides credible information about USAID, its programs and the fact that an independent Agency cannot be unilaterally abolished by the Administration.
For more details, readers can visit the Center for Global Development’s blog post on this topic.
