Home
/
RELIGION & LIBERTY ONLINE
/
Pope Francis makes connection between aid and corruption
Pope Francis makes connection between aid and corruption
Dec 17, 2025 7:06 PM

Much has been written about the unintended consequences of foreign aid flowing from the West to “developing” countries. Economists such as Dambisa Moyo, William Easterly, and Angus Deaton have mented on the downright pernicious effects of government to government aid. Not too long ago, a new voice was added to this chorus of foreign aid critics: Pope Francis.

During his recent visit to the East African nation of Mozambique, Pope Francis made ments which suggested a link between foreign aid and corruption. The Pope stated the following:

At times it seems that those who approach with the alleged desire to help have other interests. Sadly, this happens with brothers and sisters of the same land, who let themselves be corrupted. It is very dangerous to think that this is the price to be paid for foreign aid.

In other words, the Pope lamented that the hundreds of millions (and sometimes, billions of) dollars that flood an impoverished nation in the form of aid have had the the caustic effect of breeding corruption within that same nation. Why would aid have this effect? Simply put, foreign aid enables governments to act free of accountability. How does this happen?

Governments of developed countries rely primarily on businesses, a bustling middle class, and other economic actors for their revenue. In return, those members and institutions of a country’s civil society expect that their government will provide various public goods like national defense, roads, and a functioning and fair judicial system. Likewise, those in civil society expect government transparency and accountability.

This is not the case when a country’s government receives foreign aid. The amount of aid money provided to developing countries can equate to enormous percentages of their GDP and their governments’ resources. For example, the World Bank states that official net development aid to Mozambique in 2017 equated to roughly 76% of its government’s total expenses. That’s a staggering percentage. It also serves to illustrate just how much money is at stake within a poor country’s context.

With that amount of ing from outside of its borders, and not from its citizens, the government of a country can afford to ignore its people and behave corruptly. Economist Dambisa Moyo put it well in her best-selling book, Dead Aid: “Foreign aid short-circuits this link [between a government and its people]. Because the government’s financial dependence on its citizens has been reduced, it owes its people nothing.”

In the same spirit, Yale economist and Nobel Laureate, Angus Deaton, stated that

I worry a lot about African countries where almost all government expenditure ing from external sources. And that, to me, is the really crazy thing. And those governments have no incentives at all to respond to their people, because the only incentives they have are to deal with the aid agencies and to work with the aid agencies.

Indeed, foreign governments, the World Bank, the International Monetary Fund, and other development agencies try to make sure their funds are used properly. It’s just really hard to ensure and enforce this due to the fungible nature of money, public sentiment, and other factors.

Aid not only renders governments immune to their people’s cry for accountability petency, it utterly discourages them from forming the very institutions necessary for a flourishing economy in the first place. These include a functioning and just court system, a secure property rights apparatus, and a business-friendly regulation and tax structure. Why would those who prosper from the foreign aid status quo do anything to divest themselves of power? Developing those institutions would result in the formation of a rival, prosperous, and politically powerful civil society. Suddenly those who had long enjoyed perennial windfalls free of accountability would see their economic and political power wane. Such an incentive structure surely discourages reform.

Let’s be clear. Large sums of money flying around can cause government corruption to rear its ugly head just about anywhere, including in the West. For the reasons explained above, however, large sums of money in the form of aid have a particularly damaging impact on the overall health of developing countries.

Perhaps Pope Francis’ words will cause both critics and proponents of foreign aid alike to think harder about the unintended consequences of what is seemingly benevolent action. We all need to strive to provide the most effective and sustainable assistance to those most in need.

Free)

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
How Michael Novak changed your life
Michael Novak died last Thursday at the age of 83. In a remembrance for The Hill, Acton Institute President Rev. Robert A. Sirico reflects on the passing of his friend and mentor, and how he changed all of our lives: Some of my most memorable conversations took place over what would e effectively known as the Salon Novak: dinner parties that Karen and I would orchestrate where we witnessed Clare Boothe Luce contending with Jack Kemp and Bill Bennett on...
Samuel Gregg on the legacy of the late Michael Novak
In a recent article for Public Discourse, Samuel Gregg articulates the great impact that the late Michael Novak had both on him personally, but also in promoting free market economics and moral living for a greater, more virtuous world. He says: When news came of the death of the theologian and philosopher Michael Novak, the loss was felt in a particularly sharp way by those of us who knew him personally. Like many people of all ages, I was fortunate...
Why is customer service better at Starbucks than at the DMV?
Note: This is post #22 in a weekly video series on basic microeconomics. Prices are signals that indicate to suppliers how much is being demanded. So what happens when the government puts a cap on the price that can be charged for a product or service? Two effects are shortages and lower quality. In this video by Marginal Revolution University, economist Alex Tabarrok explains why this happens. (If you find the pace of the videos too slow, I’d mend watching...
When morality evaporates
When Tzvetan Todorov died on Feb. 7, the Bulgarian/French philosopher and literary critic was lamented only in certain intellectual ghettoes. To the men and women eulogizing Todorov in these circles, he was feted properly if not stingily, which is most unfortunate. Finite word counts are a harsh mistress when a fellow writer endeavors to create a fully realized portrait of his or her subject. Todorov leaves behind a body of historical and moral philosophy that connects the dots between the...
Religion & Liberty: Fighting for totalitarianism’s victims
The unofficial theme for Religion & Liberty’s first issue in 2017 is despotism. In this issue, you’ll find stories from the Soviet Union, a close look into the North Korea regime and a reexamination of Hitler’s rise to power. The cover story is an interview with human rights expert Suzanne Scholte, who discusses her passion for fighting the sadistic rule of Kim Jong Un and working with North Korean defectors. After 20 years fighting for those who don’t enjoy freedom...
To avoid a demographic winter, Europe must understand human dignity
Like all of Europe, Poland is suffering from a steep demographic crisis. Despite a relatively large (European) population andan expansive land mass that serves as a bridge between Europe and Asia, Poland has a fertility rate lower than that of China – a nation that only recently relaxed its One-Child Policy. (Beijing now enforces its two-child policy no less ruthlessly.) Several European (and non-European) nations have tried to incentivize their citizens to have more children through various means: taxpayer subsidies...
6 Quotes: Michael Novak on Freedom and Institutions
Michael Novak died last night at the age of 83. Novak was a theologian and thinkerwho cared deeply about liberty and wrote persuasively about what isnecessaryto preserve freedomfor future generations. In honor of his passing, here are six quotes by Novak on freedom and institutions: Michael Novak / Catholic University of America On truth and freedom: “The most critical threat to our freedom is a failure to appreciate the power of truth.” On the future of liberty: “During the past...
5 Facts about Michael Novak
The theologian, scholar, and writer Michael Novak died yesterday at the age of 83. Novak was one of the most influential Catholic thinkers of his generation, and an indefatigable champion of free enterprise, democracy, and liberty. Here are five facts you should know about Novak: Michael Novak / Acton Institute 1. At age fourteen Novak entered Holy Cross Seminary of the Congregation of Holy Cross at Notre Dame with the intention of ing a Catholic priest. From there, he went...
5 Facts about Washington’s Birthday
Today is the U.S. federal holiday known as Washington’s Birthday (not “Presidents Day—see item #1). In honor of George Washington’s birthday, here are 5 things you should know about the day set aside for our America’s premier founding father. 1. Although some state and local governments and private businesses refer to today as President’s Day, the legal public holiday is designated as “Washington’s Birthday” in section 6103(a) of title 5 of the United States Code. The observance of Washington’s birthday...
Explainer: What is the Comprehensive Economic and Trade Agreement (CETA)?
On Wednesday, February 15, the European Parliament approved theComprehensive Economic and Trade Agreement (CETA), a free trade agreement abolishing most trade restrictions between the European Union and Canada. Negotiators hammered out the 1,600-page agreement over the course of seven years before Canadian Prime Minister Justin Trudeau and European Council President Donald Tusk signed CETA last October 30. Then, the pact swept through the Strasbourg-based European Parliament by a vote of408-254 with 33 abstentions last week. What does it do? CETA...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved