The corporatising and abuse of generosity, those charitable organisations

That recent investigation, as also reported on CEPR, on the American Red Cross in Haiti would come as a surprise to few who are familiar with the region and the performance of similar organisations. There is an operational rule of thumb derived by insightful cynics: some 90% goes to overhead, and (some of) the balance, to the intended beneficiary that ensures successful cost-ineffectiveness.

Chris Blattman, a development economist, takes a look at the ‘milk of human kindness’ motives of these humanitarian organisations. To the title, an ‘amen’, Humanitarian aid organizations are bloated, unaccountable beasts that must be hunted down for their voluminous and valuable fat. 

And, sadly, little to no accountability as the gravy train chugs on.

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