Consequences Quote by Angus Deaton
“If poverty and underdevelopment are primarily consequences of poor institutions, then by weakening those institutions or stunting their development, large aid flows do exactly the opposite of what they are intended to do.”
About This Quote
Source Lecture: Nobel Prize Lecture, 2015
Weak institutions cause poverty; aid that weakens them worsens conditions.
In simple terms: Poor institutions cause poverty; aid can backfire.
Key Takeaway
Strengthen institutions first.
Themes
poverty
aid
institutional quality
development economics
Mood
analytical
critical
Type
academic
policy
When to use this quote
- government reform
- NGO strategy
- foreign aid design
- policy evaluation
Key Concepts
economics
public policy
Questions to Reflect On
- How can aid be structured to strengthen institutions?
- What indicators best measure institutional health?
A Different Perspective
Aid can be beneficial if institutions are strong.
