The following article first appeared in the INOMICS Handbook 2021. Download the INOMICS Handbook On a visit to the London School of Economics in November 2008, the Queen asked her hosts why no one had seen the financial crisis coming. It took the professors nine months to come up with an excuse, put forth in a letter in July 2009:

​Development aid: what is it good for? Well, according to much research the answer may well be absolutely nothing. In fact, it may well be worse than nothing. When judged against its aim of ‘instigating economic development and alleviating poverty’, its record is so dismal it looks as though aid actually hinders the achievement of its own stated goals. And the curious thing is this seems to be something of an open secret. Even to an untrained eye the big numbers pertaining to development aid don’t look right. Take Africa, for example. Over $1 trillion dollars has been pumped into the continent in the last 50 years, and how much has it benefited? How many African countries are actually in a better condition now than they were before receiving aid?